Circle Insights

Connecting paid media to first-party data: a path to enhanced customer engagement

Authors
Elena Hughes
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In today’s competitive market, the cost of acquiring new customers is continuously increasing. Coupled with changing privacy regulations and consumers’ growing demands for personalised experiences, traditional acquisition strategies that are heavily reliant on third-party data are becoming less effective. Herein lies the crucial role of first-party data in acquiring the right customers and effectively retaining them.

Getting started: why alignment and collaboration matters

Realising the potential value of first-party data requires effective collaboration between Paid Media and CRM teams. When these teams operate in silos, valuable customer insights and behavioural data are not shared effectively, and brands risk a disjointed experience alongside increased ad spend.

Aligning these teams around cohesive goals and strategies ensures that the rich, actionable insights derived from first-party data are used to inform and optimise paid media campaigns. This cross-team collaboration can significantly enhance targeting accuracy, message relevance, and ultimately, customer acquisition and retention.

Unlocking the value of first-party data across CRM and social

When it comes to delivering impactful CRM campaigns, particularly on highly competitive social channels, first-party data is invaluable to delivering a relevant and cohesive customer experience. By implementing the following, brands can ensure the effective and impactful utilisation of their data:

  1. Comprehensive customer profiles: By integrating data from various touchpoints—such as website interactions, purchase history, and email engagement—brands can build rich and comprehensive customer profiles. These profiles enable precise segmentation and targeting, allowing for highly personalised ad content that resonates with specific audience segments to come to fruition.
  2. Behavioural targeting: First-party data can be used to understand customer behaviours and preferences. For instance, if a customer frequently browses certain product categories but hasn’t made a purchase, targeted ads featuring those products, along with special offers or discounts, can be highly effective in driving conversions.
  3. Dynamic and personalised content: Social media platforms offer advanced tools for dynamic ad content. Brands can use first-party data to create ads that dynamically change based on the viewer’s profile and past interactions. Therefore, creating personalised and distinctive comms at key customer moments not only increases engagement, but also adds a competitive advantage through an enhanced overall customer experience.
  4. Cross-channel consistency: Ensure that the customer experience is consistent across all channels. If a customer has already purchased a product, avoid retargeting them with the same product ads. Instead, use the opportunity to introduce complementary products or services, thereby adding value and enhancing the customer journey.
  5. Real-time optimisation: Leverage real-time data to continuously optimise campaigns. Monitor customer interactions and campaign performance closely, and use these insights to make timely adjustments to your targeting and messaging strategies.

How CACI can help

In the context of rising customer acquisition costs, the alignment and collaboration between paid media teams and CRM teams have never been more critical. This strategic integration not only enhances the customer experience, but also drives better business outcomes—improving acquisition efficiency, increasing customer loyalty, and ultimately, boosting the bottom line.

As the digital marketing landscape continues to evolve, brands that prioritise the seamless integration of their marketing efforts and harness the power of first-party data will be best positioned to succeed. The future of marketing lies in breaking down silos and fostering collaboration, ensuring that every customer interaction is informed, intentional, and impactful.

CACI’s team of experts have extensive experience in helping clients enhance customer engagement through a multitude of strategies and solutions. If you or your business are ready to explore how first-party data can lead to effective customer acquisition and retention, please get in touch to discuss how we can help you.

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Authors
Elena Hughes
Email