[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/01\/first-party-data-customer-profiles-better-with-age\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/01\/first-party-data-customer-profiles-better-with-age\/","headline":"First-party data primer: Why you should create customer profiles, STAT","name":"First-party data primer: Why you should create customer profiles, STAT","description":"Third party cookies are slated to end after 2022. If you haven't already launched a marketing strategy fueled by data-rich customer profiles, it's time to get moving.","datePublished":"2021-06-01","dateModified":"2023-03-24","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/emily-kelly\/#Person","name":"Emily Morrow","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/emily-kelly\/","identifier":216,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/e1a6b9e9410da52a3baabbac612ba6017cee3e29053c47dc554eabe78303e0da?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e1a6b9e9410da52a3baabbac612ba6017cee3e29053c47dc554eabe78303e0da?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/CustomerProfiles_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/CustomerProfiles_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/01\/first-party-data-customer-profiles-better-with-age\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-engagement-58\/","name":"Customer Engagement","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_engagement","http:\/\/www.wikidata.org\/entity\/Q5196451"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/marketing\/customer-engagement-marketing\/","name":"Customer Engagement","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_engagement","http:\/\/www.wikidata.org\/entity\/Q5196451"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},"Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/service\/customer-service\/","name":"Customer Service","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_service","http:\/\/www.wikidata.org\/entity\/Q1060653"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/intelligent-enterprise\/","name":"Intelligent Enterprise","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Intelligent_enterprise","http:\/\/www.wikidata.org\/entity\/Q6044119"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/omnichannel-commerce\/","name":"Omnichannel Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Omnichannel"]}],"wordCount":1426,"keywords":["CDM | Customer Data Management","CDP | Customer Data Platform","CIAM | Customer Identity and Access Management","Customer Data","Customer Profile Management","First-party Data"],"articleBody":"To get the most out of your customer profiles, especially those fueled by first-party data, take a cue from one of the most iconic slogans in history: Just do it.We know third party data is going away and big data will forever be a part of marketing. Think about big data, which is data so great that typical databases cannot manage it. People talk about the Vs of big data, which range from volume and velocity to variety and value. Ultimately it’s about data that you can count on to be accurate.\u00a0We often tout the benefits of planning \u2013 of investing upfront to drive significant benefits later. And yet, it\u2019s hard to put it into practice.Almost every annual planning meeting I’ve been a part of has dedicated a portion of time to finding ways to be “less reactive.” When we answer to internal and external stakeholders, it\u2019s scary to challenge the status quo, so we weigh options and strategies at length before taking any action.But when the action you\u2019re planning to take gets stronger over time, then delays could come back to bite you later.Well-implemented customer profiles get fuller and more valuable as customers\u2019 relationships with brands evolve. And as more and more companies recognize that value, the gap between those who start utilizing them now versus waiting will only grow. So, if you want to keep your competitive edge, it’s time to get a move on robust customer profiles.      Make Better (Data) Choices: Unified Customer Profile Checklist & CDP                With the following unified customer profile checklist, you can find insights to improve your overall customer data strategy. Explore how your current customer data strategy and customer profiles compare to what a CDP can do.      Avoid FOMO with first party dataBrands, and especially marketing teams, are abuzz with the impending end of third-party cookies. But while tons of ad and marketing strategies have been built around third-party data, it’s not the only data we have access to. Big data and the ways in which it can be segmented is rich with insights.To prepare for the cookie-less world, businesses need to recognize and harness the value of their first-party data. And there is plenty of value.It\u2019s the age-old lesson of, \u201cJust because we\u2019ve always done it this way doesn\u2019t mean it\u2019s the right way to do it now.\u201dThe reason first party data is so important is that it’s pure, direct from the source. First party data is\u00a0the data a company gets directly from their customers\u2014from the person for you to use to benefit that same person. A complete circle of insight and satisfaction.First party data has huge benefits compared to its third-party cousins. It’s proprietary and relevant to you and specific to your audience. It\u2019s a gateway to getting to know your customers so you can:Develop relevant and captivating experiences based on their preferences, andAttract more customers like themCompanies have already been doing this, of course. Big data creates big opportunities. But the shift away from third-party cookies means that they’ll need to lean more heavily on their first-party insights. Adjusting to this change in the landscape will take some shifts in strategy and approach.And since the shift is scheduled for the start of 2022, time is of the essence. If you haven’t already launched a marketing strategy fueled by data-rich customer profiles, it’s time to get moving. Organizations that have already invested in customer profiles built from customer data platforms are at an advantage. CDPs pull data from first- and third-party sources, so they already have the infrastructure in place to effectively utilize the first-party data.This content is hosted by a third party ( open.spotify.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowCreate a virtuous data experience cycleThe challenge of first-party data is that customers need to want to share it with you, which means you need to offer something worth opting-in for. It could be anything from members-only discounts to a relevant industry webinar, but it needs to be something they\u2019ll actually want.And the best way to know what they\u2019ll actually want is to get to know them.      We are the champions: How to rock customer experience                Brands can take a cue from the music industry on how to deliver the best customer experience. Like a rock concert, good CX requires a lot of coordination and teamwork. You can't just wing it.      If we were operating in the pre-data age, that would seem like a chicken-and-egg dilemma. But we\u2019ve spent years collecting all sorts of data on our audiences. If you don\u2019t know what types of experiences they\u2019re interested in, you may have other issues to address. But even then, you know what your company brings to the market, and that alone should draw in some people.Think of it this way: would you rather plan a surprise party for your best friend of over ten years or the coworker you met last month? You know a little about your new colleague, so chances are you could plan a delightful night. But the deep knowledge you have of your BFF would likely lead to a more uniquely enticing event.Use the insights you already have to deliver value to your customers, and they will happily share their information directly with you. Then, you can use that data to deliver even more relevant experiences, which will attract more customers and earn you more first-party data. And so on, and so on.That virtuous cycle means customer profiles get stronger over time. Good data leads to better experiences, which drive higher engagement, which leads to more valuable data.With first-party data, more is moreAnother reason time is of the essence when it comes to building customer profiles? The sheer amount of data today\u2019s systems can act on.Data management solutions like CDPs are enabled with machine learning and AI, allowing them to sift through big data more effectively than humans ever could. So massive collections of data are no longer insurmountable. Instead, the bigger backlog of historical data you have, the better your system can identify patterns and trends to improve your customer experience and inform strategic decisions.But, especially when you\u2019re relying on first-party data, you will not build that database overnight.      Customer data management\u2014Best practice and CDP                Customer data management is customer service you can't see with results you really can measure. CDPs deliver exceptional customer data management solutions.      Optimizing customer profiles is an iterative process\u2014it\u2019s not going to be perfect the first time you use it. You\u2019ll start to see the positive patterns and trends as you use it, but you\u2019ll also identify gaps that you couldn\u2019t have predicted otherwise. It could be gaps in the data (\u201cIf only we knew X, we could really make an impact.\u201d), or gaps in your customer experience (\u201cWe\u2019re losing a lot of people at this stage in the journey \u2013 what\u2019s going on?\u201d).You then use all those insights to adjust your user flow, profile settings, or anything in between. Then you do it again. And again. It takes time, but the investment is worth it.If you wait to get started with a customer profile strategy until it\u2019s perfect, you\u2019ll find yourself stuck in a loop, because you can\u2019t make it perfect until you see it in action.Don’t wait to turn first-party data into first-class experiences.No one can see through false urgency like a marketer. When I see “Don’t wait! Act now!,” my buzzword-spidey-senses start to tingle. But sometimes, the urgency is real. Customer profiles are incredibly powerful tools that can help all sorts of businesses create meaningful, long-lasting relationships with their customers. They can impact every facet of the customer experience and lead to serious ROI.And once third-party cookies are retired, profiles based on first-party data will be taking center stage.But they aren’t a magic bullet that can instantly transform your business. If you want to reap the benefits down the line, you need to make a move now. And if you don’t, someone else will.  Do you really know your customer? Find out how a CDP uncovers the insight you need to power CX that drives growth. Start HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"06","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/06\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/06\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"First-party data primer: Why you should create customer profiles, STAT","item":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/01\/first-party-data-customer-profiles-better-with-age\/#breadcrumbitem"}]}]