by Christian Sauer, Founder and Board Member, Webtrekk
Most marketing platforms massively limit data usage outside their own ecosystem, often referring to the GDPR. Due to the consolidation of user data, so-called “Walled Gardens” exist where extensive profile targeting and personalization options are possible, but only within these closed environments.
Knowledge of customers and potential buyers is the capital of marketing platforms; the intellectual property contained within is worth protecting as it ensures their own business success. The disadvantage for advertisers is apparent – they are dependent on the platform hosts and cannot fully measure their performance against other activities nor can they export complete data.
First-Party Data: Creating your own Ecosystem
On closer inspection, it is obvious that this business model worked very well for the providers themselves. So why shouldn’t companies follow their example and create an alternate ecosystem with an exclusive data-pool of their own?
Through growing restrictions on third-party data usage and collection the sound approach is to rely more and more on your own data. Your data consists of exclusive insights into the world of both your clients and potential new customers. If you can collect, understand and activate the full breadth of your own ecosystem then valuable individual user information emerges. This knowledge has a significantly higher value than the fragmented insights from the Walled Gardens. When you can identify and retarget your absolute premium clients and prospects, your marketing will be far more effective than if running a broad campaign to an unknown audience. Within existing platforms you often need to rely on preset filters and metrics, but within your own microcosm you can define segments individually and enrich them with valuable information. You are in full control of determining the metrics that will define the customer groups.
Generating new customers via auction-based digital channels is becoming more and more competitive, so knowing and maximizing your Customer Lifetime Value is critical. Only then can you keep up with the costs of finding new customers. With your own Walled Garden you can have more control over where your customer is directed after their first purchase. Users that have already visited your website have shown a considerable amount of interest in your products and now you know them thanks to tracking. Users such as these have higher conversion and purchase rates than completely unknown contacts. Furthermore, they are already familiar with your products. Your goal with these visitors is to develop their interest further, educate them more about what you are offering and guide them towards a purchase.
Using the granular information that you have gathered, you have the option to address the user in a highly personalized manner during the checkout process. Here is where it is advisable to run processes in real-time.
Of course, you can use your data across all of your online properties and marketing activity plus, in the instance where it benefits both parties, share your data with your partners. If you decide to share data with partners, we suggest you share only what is essential to ensure both added value for your customers and a successful partnership.
We at Webtrekk want to give our best to support you towards getting on equal footing with the big advertising platforms. We help you expand your marketing potential with your first-party data while simultaneously generating added value for the market.