[Free Takeaway Included – GDPR Compliance Checklist]

  • The onslaught of data privacy regulations like EU’s GDPR and California’s CCPA.
  • Google’s plan to phase out third-party cookies by 2023.
  • Apple and Mozilla’s official blocking of third-party tracking and cookies.
  • High-profile data leaks eroding consumer confidence.

All of the above are causing massive shifts in the way data is being collected, stored and used.

Particularly, these have led to the deprecation of third-party data and a new era set to be ruled by First-Party Data or Enterprise Data.

Companies have always had access to first-party data – customer names and such – but the data strategies are either minimal or not unleashed to its full capabilities, at best.

However, that’s all changing, now that first-party data has come to the forefront. Companies are forced to ditch third-party data with the growing data privacy concerns of consumers.

 

            88% of marketers stated that collecting first-party data is their top priority in 2021.

Switiching to a Enteprise Data Strategy

Implementing an enterprise data strategy is no longer a nice-to-have, but a must-have for brands looking for more insights into customer behaviour and innovative ways to offer a personalized experience.

Despite the many advantages that enterprise data has to offer, it’s not easy to implement and manage enterprise data.

In a survey of US digital marketers by MightyHive, respondents said they were, on average, tapping into just 47% of their company’s first-party data potential.

And, that’s not all, a plethora of challenges arise when companies try to collect and use customer data, out of which data quality is the topmost concern, as depicted below.

Source – Signal 

Enterprise Data Management Challenges and How to Address Them?

Web browsers restricting ad trackers, new data privacy laws and constant data breaches have given marketers incentive to use less third-party data and more enterprise data.

Here are some of the challenges you may come across when activating enterprise data at scale:

  1. Quality of Data

Collecting quality and reliable data to act upon is perhaps the biggest challenge. As enterprise data is the data collected from customers and their interactions with a brand, finding ways to enable customers to share their data is the hardest part of all.

For this to happen, facilitate a fair and helpful exchange that incentivizes customers to share a bit more information about themselves. Firstly, abide by data privacy regulations and be transparent about how you will be using the data.

Secondly, build a trustful and long-lasting relationship with customers and offer something valuable in return to customers sharing data like information, assistance, premium content, special offers, etc.

Want to know if your data collection efforts are in alignment with GDPR? Here’s a free compliance checklist.

  1. Integrating Cross-Channel Enterprise Data

Since enterprise data is collected from disparate sources, it’s vital to integrate data pipelines so that there is a unified view of the customer. There’s no point in collecting data and letting it lie in silos without access to all team members.

Adopting centralized data warehouses, aggregating and matching identities across multiple data sources or martech solutions are some important measures to undertake. This will make data accessible to all with real-time visibility.

  1. Data Collection and Tagging

In the Gartner 2020 Marketing Data and Analytics Survey, which polled both producers and consumers of marketing analytics, 64% of respondents said that data management, data integration and data formatting were among their top three most time-consuming activities.

Marketers will need to deploy the right technologies including customer data platforms, identity management solutions and establish standard processes for data acquisition, organization and storage. They will need to adapt a custom tracking mechanism to collect and de-anonymize data accurately.

  1. Lack of Strategy and Ad Hoc Approach

What holds back brands from utilizing enterprise data effectively is the lack of a coordinated plan in choosing which data to collect, how to analyze and activate it. Besides, most brands adopt an ad hoc approach which adds to the challenges.

 

Establishing clear goals in tandem with customer experience and business objectives will help you differentiate between data that is required and data that is nice-to-have. This helps you identify which data to prioritize and create a plan with measurable goals to guide data collection and usage.

  1. Data Decay or the inability to Uncover Insights Quick Enough

Generally, the quality of in-house data is significantly higher than that of third-party sources since the marketer is in control. However, at times errors may be introduced while collecting data or data may become obsolete by the time you have an opportunity to act upon it.

That’s why it’s mandatory to generate real-time first-party data from multiple sources and collate them to provide the most accurate picture. The idea is to prove value quickly with use cases and determine a clear plan for the activation of data.

An approach based on testing and learning can help to assess which workflow for activation of data helps you achieve your marketing goals.

First-Party Relationship is Key

Companies are under pressure from two sides – the imperative to provide top-notch privacy and meeting the demands of customers who want personalized interactions. Therefore to navigate through shifting factors, companies need to switch to an enterprise data strategy that addresses both.

As we enter a new era of digital advertising, establishing first-party relationships is key. Future-proof your digital marketing data analytics strategy with the help of a data analytics expert by your side who can help you mitigate enterprise data management challenges and discover powerful insights.

Are you using first-party data in your analytics journey? What are some of the challenges you have seen and overcome so far? Drop your comments below or write to us at [email protected].