If you need customer data, you have one of two options: collecting it yourself (I.E., first-party data) or buying it from a third party. However, data-related legislation will change this. Since the question is when not if, it’s more essential than ever to think about collecting your own data.
Through our research study, we found that independent respondents covet consumer privacy. They believe their organization can weather any data storms that arise and are the least likely of all respondents to see data-related legislation as a hurdle when it comes to their marketing efforts. This group says their organizations excel at first-party data collection, management, and analysis. On the other hand, data-reliant respondents don’t see ethical issues in using third-party data but believe data-based marketing is the best approach. Concerned respondents worry about their organizations using third-party data, how data sourcing impacts consumer perceptions, and whether their data is safe and private.
While 68 percent of respondents say their organizations collect basic customer information
42 percent purchase data from outside sources such as google or facebook. Independent respondents are less likely than the other two groups to say their organizations purchase third-party data.
Interestingly, we discovered there are different attitudes about third-party data based on respondents’ ages. Those 30-39 years old are more likely than those over 50 to say their organizations buy third-party data.
When laws impacting data sourcing and call lists for sale usage go into effect or when google phases out cookies, organizations must be agile in how they collect data, manage, and analyze it. To put yourself back in the driver’s seat, create a system today that ensures your organization can rely on its own data in the future.
You’re going to need to make some changes within your business
Specifically in marketing and sales. Which attitudinal segment you identify with is going to make a big difference in your readiness and the changes you’ll notice in your business.
Those that identify with independent respondents CU Lists will weather the shift fairly well and won’t see a noticeable shift in their day-to-day course of business. However, data-reliant and concerned groups may see low-performing campaigns, less web traffic or longer close rates. This is because it’ll become harder to target ads across all mediums to your ideal customers without access to third-party data. You’ll also miss out on personalization. Although customers want to be marketed to, they also want to feel valued—not just like your next sale.