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Marketing has seen significant changes over the past decade. More recently, the disappearance of third-party cookies has prompted marketers across all industries to rethink their strategies and what to do once cookies are finally gone. But before going into the matter, it is important to understand how we got here.
Third party cookies were introduced to allow marketers to keep track of what they believed customers wanted on different platforms. If a customer was looking for an item on one website, ads for that item would appear on all other sites they visited. While it may initially have been a good way to better understand consumer behavior, it actually prompted customers to lose faith in the brands they loved, while also making it harder for brands to get a real idea of what their customers wanted. actually.
As a result, many brands began switching to alternative communication methods when they realized they were losing loyal customers and audiences. They began interacting with influencers and affiliate programs because they offered a more “authentic” relationship. However, such programs require significant investment over time to get them up and running and high recurring costs to maximize reach. This approach has led many marketers to overlook one of the most untapped assets they have access to: proprietary data.
Proprietary data is data collected from a customer’s ecosystem. Collected via email, social media followers, app usage, and website traffic (among others), this data is generally what customers are already opting to provide. As marketers and brands continue to look for alternative ways to personalize customer experiences while maintaining engagement, proprietary data is the key that many are missing.
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In 2021, research found that 71% of consumers expect businesses to deliver personalized interactions. And 76% feel frustrated when that doesn’t happen. Additionally, the same research found that fastest growing companies generate 40% more of their revenue from personalization than their slower growing counterparts. As COVID-19 has changed nearly every way marketers interact with customers, proprietary data has the ability to create the personalized experiences that matter most.
Proprietary data takes personalization to a new level
With the growing need for personalization, we must consider that third party data is simply extracted from the cookies that follow you on the Internet. It isn’t actually tracking the items you’re buying in the same way as proprietary data. Proprietary data is the actual information from your devices, structured to fit what you are looking for.
For example, let’s say you’re going on a trip and looking for the best suitcase to buy. As you do your research, you find that the Away suitcase is the best to use for where you are going. With this you also book a trip to Italy. All confirmations are in your email, so now you get tips for visiting Italy, local restaurants and cars you can rent. That’s the power of proprietary data – harnessing the information you’ve already provided to give smart advice on what you’re doing and what to buy for it.
Meanwhile, in the same scenario, in the search for the best suitcase to use for your trip, you click on different options, deciding not to buy the Samsonite suitcase because it does not give you what you are looking for. Yet every website you visit, regardless of whether it’s relevant to travel, shows you ads for the Samsonite suitcase that you don’t intend to buy.
Which of these offers is more personalized? Not only does proprietary data offer that kind of experience, it is far less of a hassle to you when searching.
Look no further for reliability
We have seen for years that pervasive communication channels such as email newsletters are not reliable as inputs to marketing spending and performance. Yet we continue to see an influx of newsletters every day. The average email open rate is 20.81%. But we’ve already seen that personalization helps increase ROI. Without personalization, email newsletters become just as unreliable for your brand.
Using proprietary data means using inherently better and more efficient resources. As such, there is an opportunity for better reliability while getting personalized recommendations. With personalization and reliability, as proprietary data and access to actual purchasing and usage are so available, marketers are able to be clearer and more concise in their messages, value propositions, and competitive differentiation. .
With ever-changing marketing budgets, proprietary data informs a simpler strategy and budget allocation
There are various challenges when linking the outputs of multiple ad spend within social and digital interactions to inform future strategy and budget allocation. These challenges include understanding conversion rates across channels and identifying the most effective messages and content that drive engagement, clicks, and additional actions. In recent years and among nearly 400 marketing leaders, marketing budgets have dropped from 11% of business revenue in 2020 to just 6.4% in 2021.
As mentioned earlier, proprietary data helps with reliability and personalization thanks to expanded resources. But beyond that, proprietary data helps marketing teams be more agile with their budgets.
We know that proprietary data helps brands and marketers prioritize personalization, reliability, and more strategic budget allocation, yet many aren’t jumping on the treasure trove of data at their disposal yet. Unsurprisingly, third-party data disappears at some point. Google can push it out as often as they want, but at some point we’ll all have to embrace something more sustainable. Now that we know what kinds of benefits proprietary data offers, marketers need to get on board to not miss out on this huge market opportunity.
Jyothi Swaroop is Nylas’ CMO
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