Transcript:

Over the past few years, we’ve heard talk about big data, personal data, data breaches and how restricting data is leading to a cookieless future.   However, as with all trends there’s ups and downs and a few U-turns on the way, so I’m here to bring you fully up-to-date.

Now I’ve been involved with marketing leisure facilities for nearly 25 years.  Today we’ll be talking a lot about how we use people’s data to market to them.  Now this is where some people get nervous when we talk about personal data – like we’re a bond villain in our marketing lair doing evil things with it.

I find it funny when people talk about data privacy and how nervous younger generations tend to be about their data.  I grew up where every year the phonebook would land on your doorstep containing the name, address and phone number of almost everyone who lived in the country.  But at the end of the day, a certain amount of data is freely given by people all the time.  Some of it is compulsory – if I want a new credit card I have to give a lot of my data.  If I want to enter a competition, I’ll give as little as I can but still enough to enter.

Anyway, back to marketing – it seems these days that we’ve become obsessed with digital advertising.   Again, I’m old enough to remember when lead generation meant attending events and standing in shopping centres trying to get names and numbers off people, but I appreciate times have changed. 

We don’t have the staffing and resource to get out and about as much, and who wants to be hassled when out shopping.  We’ve all been there when we swerve the people with the clipboards in shopping centres.

Nowadays when we think about lead generation it’s so much easier, quicker and cheaper, we simply setup a Facebook advert and wait for people to complete an online form.   Simple.

But if I owned a leisure centre, my number one priority marketing activity would be utilising the data I already hold on my customers and prospects.  This should be the cheapest and most accessible form of marketing activity you can do.

Personal data falls into two initial categories; zero party and 1^st party.

Zero party is data intentionally and proactively shared with a business, such as the online form completion I just mentioned, or a survey or online joining process.

First party data is gathered from customers due to their interactions with the business, for example, their purchase history, centre usage, or pages viewed on a website.  What we’re saying here is that we’re the first business to collect unique information about a customer.

Second party data is rarely mentioned but the clue is in the name.  This is data that is acquired or shared with a trusted partner or business, normally in a mutually beneficial relationship, for example, loyalty cards will often trade data with credit card companies in exchange for promoting their service.  This often takes place with little knowledge to the end user and is covered in the small print of contracts.  (maybe we are Bond villains after all!)

Third party data is data acquired by a company not directly from the consumer.  These companies are often referred to as aggregators, and will trade data as their product.  The danger with acquiring 3^rd party data is you have no guarantee it was collected with the customer’s consent or to the accuracy of it.  It is normally collated in huge datasets and can be used to understand a broader view of customer profiles and support enhanced ad targeting.

You may be aware of the Facebook-Cambridge Analytica scandal back around 2018 where Cambridge Analytica, acting as the aggregator, accessed and used millions of Facebook users personal data without their consent to help with voter profiling and targeting.  This was all linked to the presidential campaign of Donald Trump in 2016.  Facebook eventually settled the case by paying £600m pounds.

Another well-talked about situation surrounds Google and the removal of cookies from its Chrome browser, which dominates the market.  Other browsers like Safari and Firefox already block 3^rd-party cookies.  Cookies are small files that store data about your online activities, and can help personalise a web experience.

Initially cookies were meant to be phased out by 2022 and then delayed to 2024.  However Google have now u-turned and are instead looking at giving users more control over their privacy settings.  This is a big relief for advertisers who rely on these cookies to direct targeted campaigns to consumers.

Now, this series is called the School of Marketing, but if it was the School of Customer Experience I’d still be sat here talking to you about maximising your first party data.  Using surveys and looking at trends will help you refine your service offering, exceed customer expectations and keep you one step ahead of the competition.  Why look at national trends and what industry surveys say, when you can do your own surveys and understand your customers at a local level – think first party data first.

So, to come back to why is first-party data so valuable?   Well, for starters, it’s more accurate and reliable. Since you’re collecting it directly from your customers, you know it’s coming from a trusted source.  This data can help you understand your customers’ behaviours, preferences, and needs, allowing you to create more personalised and effective marketing campaigns.

Another key benefit of first-party data is that it helps you build stronger relationships with your customers.   When you use their data to provide a better experience, they feel valued and understood. And you’d like to think this will lead to increased loyalty and higher customer retention rates.

In conclusion, first-party data is a hugely powerful tool for marketers. It provides valuable insights, helps you create personalised experiences, and strengthens customer relationships.

So, if you’re not already leveraging first-party data in your marketing strategy, now is the time to start!