Let’s start this blog with a couple of assumptions. First, let’s assume that you agree that personalization is a critical component of a customer experience strategy. Next, let’s also assume that you agree that data is a critical component to doing personalization well. Now that we’re on the same page, I can help answer part one of the “which data matters most?” question.
In my eyes, the most important type of data for today’s organizations to collect and analyze is first-party data. I’m by no means dismissing the usefulness of third-party data or other data types, but I believe they are most effective as a way to augment existing first-party data. I’m not one to make claims without sources, so it’s worth referencing a marketer data survey from E-consultancy and Signal which came to the conclusion that first-party data garners the highest return on investment of any data type.
The survey also found:
- 64 percent pointed to first-party data as driving the greatest increase to their customer lifetime value
- 68 percent selected first-party data as the easiest data investment to justify financially
Once you’ve agreed to invest and focus on collecting and actioning first-party data, you’ve only solved one piece of the puzzle. There’s lots of information to collect on customers, so how does one do it best in service of their customer experience goals? How can you identify which data is most actionable and what isn’t as useful? I like to think of data collection as a phased approach that builds off itself, and that there are three phases of data collection that can provide context – baseline, activity, and behavioral data. I’ll delve into at a much deeper level on the webinar, but here’s some examples of each data type.