Why First-Party Data Should be Enriched with Location Intelligence
June 21, 2021
With the rise of data privacy regulations and cookies on the way out, the marketing space, specifically digital marketing, is starting to look for privacy-friendly ways to get the data they need. When so much of a campaign’s effectiveness relies on customer data to accurately personalize and engage, it’s no surprise that marketers are thinking about first-party data collected from their own websites, social media, and more.
While this seems to be cost-effective, it could put a strain on resources. First-party data lacks scale because it’s only being collected from specific, internal data sources instead of a multitude of both internal and external sources, limiting the lens that a customer could be viewed from to a pinprick.
How can marketers make the most of the first-party data that they’re collecting? They need to enrich their first-party data with location intelligence.
Build Out Better Customer Personas
Most of the data that brands have on their customers can include shopping preferences gathered from interactions with a mobile brand’s apps, website, or CRM platform. While that is great data to have, is it enough? Location intelligence is derived from privacy-friendly mobile location signals to determine how your customers move around in the world. This means that you are able to understand who your customers are and what their preferences are.
For example, let’s say that you are a popular retail brand that has always relied on third-party data resources. Your business hears about the benefits of first-party data and decides to invest in it. The thing is, while the data you’re gathering is valuable, it’s only the data that relates to your brand so it leaves a lot of important information out. Using location intelligence, you are able to see how your customers move around in the real world. This allows you to enrich that first-party data with their actual interests beyond your own company’s products.
Enhance Campaign Personalization
Brands are facing more competition than ever before, truly understanding their customers is paramount to getting ahead. Using location intelligence, you are able to gauge what their preferences are based on their personas and enrich your first-party data with analytics that go beyond your own front door.
Let’s continue with the example from above. Based on the insights from location intelligence, you were able to determine that your customers are people who love coffee shops, prefer shopping at Michael’s over Hobby Lobby, and are outdoor enthusiasts who love to attend the special nature-related events in the area. You create an entirely new campaign around your outdoor wear that offers a discount for a purchase above a certain amount. You are able to construct a loyalty program that offers a free coffee from the chain coffee shop next door after a certain amount of points have been reached. In addition to this, you are able to sponsor one of the outdoor events in your area to help market this new line of outdoor wear.
Because of location intelligence, your messaging is more personalized than it ever has been before and your conversions/ROI are greater as a result.
If you had only used those first-party data sets, your new campaign would have been a simple sale on the most popular items in your store instead of getting to the root of what your customers are actually interested in, and what will make them buy from you.
Predicting Customer Patterns
One of the most important things that a marketer does before a campaign launch is research customer behavior patterns. A marketing team can use these insights to plan out future campaigns. However, there are limitations to only using first-party customer data to predict consumer behavior.
First-party customer data only includes datasets that come from customer behaviors on your own platforms. With this type of data, you only see part of your customer journey. By enriching first-party data with location intelligence, you can determine where your customers prefer to shop and why they prefer those brands. Naturally, these insights allow you to predict customer patterns and behavior beyond the silo of your own customer data.
Location Intelligence for Consumer Data Enrichment
First-party data is a great data source for getting to know your customers, but it could be made better with the addition of location intelligence. For more information on enriching your data with location intelligence, contact us to speak with an expert today.