While intuitive consumer segmentation strategies are continually redefining our data-driven world, it's become more unified than ever as rising markets open new doors into omnichannel marketing. The world's top marketing teams have spent years highlighting customer habit shifts, honing in on the communication channels they love to dish out the content they love—right when they want it.
Advertising in the Wake of Third-Party Data
It was easy enough to craft full-fledged campaigns with just third-party data in the past. Between Facebook, Instagram, LinkedIn, and other social media platforms, leading data providers have had few issues in garnering the information needed to prioritize their customers' needs.
Today, however, data acquired "through the network stream" suffers from slow currents. As Facebook's News Feed becomes increasingly saturated, startups and small businesses are finding fewer ways to stake a claim in an environment once fertile with brand outreach stages and organic outreach.
When considering the low-entry-barrier forefront of e-commerce, Shopify's 820,000 users continuously find new ways to provide unique products at bargain prices. Because Shopify is designed to both empower and absorb useful marketing insights to make the customer's shopping experience better, many marketers approach it to get their feet wet with experimental campaigns.
Meanwhile, Google's removal of third-party cookies from Chrome has thrown digital marketers for a loop if they're behind the times. This fundamental shift in industry advertising employs a new, fresh approach to consumer privacy—undermining the business models of numerous ad-supported websites.
Digital marketers utilizing time-tested-and-true "fingerprinting" tools to power dynamic cross-channel designs are struggling to rectify, let alone unify, their many avenues of consumer engagement. As one cornerstone of digital outreach wanes, however, another waxes first-party data.
Before exploring the potential of harmonized first-party data sources, however, it's vital to ascertain the true nature of the internet's "white noise." An excellent place to start is Google's take on cookies and consumer privacy. A superb follow-up destination that's frequented by marketers who've regrouped to assess the situation. Then, tools of knowledge at your side, you'll be ready to imbue your next campaign with the data collection strategies built for consumer engagement—and vice versa.
First-Party Data as a First-Stop Solution
More marketers than ever are underpinning new strategies with first-party data foundations upon which multifaceted, multi-channel innovations can grow. Rather than allocating data through a wide variety of third-party sources, they're sourcing a wide range of data from a single source: their audience.
In essence, first-party data begets the immediate insights which campaigns need to stay ahead of the internet curve. For many, Google Ads is a natural platform to kick off a flexible, accessible first-party-data-driven strategy. Capable of casting an extensive, yet form-fitting net, Google Ads is a tool many marketers swear by when scaling challenges arise.
In 2020, relevancy is everything—and companies employing first-party data to learn more about their current audience's characteristics, behaviors, interests, and preferences can not only improve their targeting—but organic digital campaigns that practically run themselves.
Cost Efficiency Errors in the Land of Information
Many marketers know that first-party data is worth its weight in conversions, branded site customer retention, and overall ROI—despite its heftier price-tag upfront. Still, few manage to find a provider capable of helping them leverage these costs to get the most out of their campaigns. Many companies have first-party data available at the get-go, yet they fail in comprehending, storing, and managing it.
They leave money at the table, unable to optimize their information flows into a unified data source capable of enabling the optimization they need to thrive. For those working alongside a trusted, experienced provider, however, cost-efficiency needn't be a means to an end.
Instead, it can become a unique byproduct of streamlined campaigns—astoundingly recyclable to generate refined campaign fuel. Those with few consumer data streams don't easily achieve this "forwards-backward" method of e-commerce optimization—and it's impossible to maximize unless a brand reevaluates its understanding of customer networks as a whole.
The Forwards-Backward Approach
Data unification takes many forms, but one of its most lucrative is that of high-powered Average Order Value prioritization campaigns. If one's data sources streamline effectively, the sum itself—ever-valuable—can be used to discover new target markets. These new group targets dramatically reduce business's customer acquisition costs, as audiences are reached with far fewer resources. In this "forward leap" stage of such an approach, these unified data streams help customers achieve a brand's products much quicker.
A Forward Momentum Snapshot: Warby Parker
Warby Parker's unique take on modern marketing is tough to decode—but it's decipherable when one understands how they've unlocked their e-commerce channels. Warby Parker built upon rectifying a simple, yet painfully persistent, problem in its industry: Glasses are expensive—way too expensive.
In an industry monopolized by only a couple of providers, Warby Parker's value proposition is what eventually enabled its "highly delineated offering" strategy. It utilized powerful, data-driven insights garnered from its Home-Try-On glasses program—carefully identifying the minuscule sub-markets most of its industry tycoons. In this "forward leap," Warby Parker, virtually, had already secured its success.
Reverse Reallocation: The Tactical Backpedal
More importantly, however, this leap allows for additional first-party data collection opportunities: online shoppers hopping from social media platforms to landing pages, from landing pages to digital checkout aisles, from checkout aisles to newsletters—and, in some cases, from newsletters to brick-and-mortar locations.
In Warby Parker's case, an established e-commerce platform defined by its niche sub-markets soon had the insightful resources needed to branch out. It created a handful of storefronts across the nation to display its grand array of top-tier quality products. In a final twist, Warby Parker directed its store-goers back online—essentially transplanting its Home-Try-On glasses program with an in-store try-on session, ushering customers along its regular channels all the same.
This experience is the "backward" motion of the strategy—wherein the customers a brand gains further nurture its first-party data pool. The data pool gets reexamined, the campaign gets redefined, and the brand is ready for takeoff once more—leaping forward with better footing.
Redefining Customer Acquisition Cost in 2020
These types of omnichannel campaigns cater to customers with instant-response discounts, promotions, on-location specials, and more—each packing value derived from supreme relevancy and customization. As personalized offers increase, purchases increase—and retention growth soon follows.
Redefining your customer acquisition costs might seem like it's only become more complicated in recent years—yet the opposite is exact when a trusted provider is at your side.
If you're ready to explore the deep connections hidden within your pre-established networks, DataQ is here to help. Equipped with the tools every e-commerce marketer needs to succeed, the DataQ team empowers full-fledged data sets with innovative approaches—transforming yesterday's campaigns into tomorrow's creations. Partner with us today and try it free for 14-days to take advantage of the data-driven insights guaranteed to outpace the status quo. Discover, connect, and create at every turn—as all avenues hold future wisdom.