1. Increase Acquisition
Users are targeted based on propensity to purchase, when they last purchased, product viewed, and a dozen other parameters. In turn, this increases click-through rates and conversion rates for prospecting and retargeting activities.
2. Increase Retention
Drive repeat purchases with personalised email marketing efforts and customer retargeting campaigns. Marketing is more relevant when supplemented with the additional customer data that’s collected at the point of purchase.
3. Website Experience
Brands can personalise the website experience based on customer cohorts. Cohorts can be based on frequency, recency, monetary or category parameters, for example.
More obviously, user experience data collected from the website can be used to increase conversion rates (i.e. reducing bounce rates and funnel abandonment rates), and optimise specific device/browser experiences. To achieve this, common data sources include web analytics (e.g. Google Analytics) and user testing (e.g. usertesting.com).
4. Cross Channel Application
First-party data isn’t limited to a specific channel or platform. Learnings from the most profitable audiences can be applied cross-channel; DTC ad spend can target similar audience parameters across Facebook. Google, TikTok et al. This can be a huge head-start when diversifying into new channels, cutting the learning curve by weeks or months.