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Brands need a first-party data strategy as consumers demand clear value for engagement: ISA panel

At ISA's Media Charter, a panel highlighted the importance of first-party data, personalised communication and improved business returns.

Manifest Media Staff

Sep 11, 2024, 10:19 am

From left: Shreya Godani, Chintan Soni, Gautam Surath, Shashi Udyavar and Tejas Apte.

At the Indian Society of Advertisers (ISA)’s Media Charter summit, a panel comprising Chintan Soni, chief executive officer and co-founder, mFunnel.ai (Unit of Madison World); Shashi Udyavar, industry head (CPG), Meta; Gautam Surath, chief operating officer, Performics, and Tejas Apte, ISA media forum chairperson, general manager, media South Asia, Unilever, explored the critical role of first-party data in enabling personalised marketing communication. The discussion also highlighted the importance of adhering to regulatory frameworks to ensure compliance.

The panel was moderated by Shreya Godani, media measurement and marketing head, ISA. 

Unlocking the data hierarchy

Udyavar opened the session by emphasising the immense value of first-party data, describing it as a 'superpower for businesses' that allows companies to build long-term relationships through detailed customer insights.

Using a car insurance company as an example, Udyavar explained, “First-party data will allow them to keep customers coming back to their app or website to renew policies. It provides detailed insights that let them offer customers new services, like renewing insurance for their entire family."

Udyavar also discussed the complexity of second-party data, likening it to using a company laptop, 'one can use it, but don’t own it!'

"For example, car manufacturers could work with insurance providers to target owners of older cars for new purchases. Third-party data is broader but less detailed, useful for wide-scale targeting to eventually transition customers into the first-party data ecosystem," Udyavar shared.

Why first-party data is the new gold for marketers

Underscoring the critical role first-party data currently plays for marketers, Apte conveyed, “Digital has unlocked the ability to target a cohort of one, offering a level of granularity that only first-party data can provide.” 

He highlighted how this allows marketers to customise products and communication for individual needs. 

“For example, someone with a specific hair or skin type requires a different serum, meaning the messaging must be tailored. This personalisation leads to higher business returns,” added Apte.

Apte also cautioned about privacy concerns, highlighting the need for “privacy-safe, consent-based first-party data” to maintain consumer trust amid the rising use of ad blockers and opt-outs.

Udyavar echoed these points, stressing the need for brands to offer value in exchange for consumer data. 

“Consumers today won’t engage unless they see significant value,” he said, adding that breaking this value barrier has immense benefits across industries.

Udyavar also noted the divide between 'data haves' and 'data have-nots', with industries like banking and airlines naturally possessing more data. 

"Even sectors like FMCG are investing in data strategies, using techniques like lookalike audiences to enhance both reach and effectiveness," Udyavar communicated.

Building trust through clear value exchange

Surath emphasised the need for a clear reason, whether functional or emotional, for consumers to share their data. “As privacy laws tighten, building strong, direct relationships now is crucial to staying ahead,” he said.

Surath stressed that defining the value exchange is essential for engaging consumers and obtaining their data.

Apte illustrated how industries like airlines and healthcare leverage first-party data. “Airlines use it to offer upgrades or remind about bookings, while healthcare and finance use it for disease detection and credit assessments,” he noted.

He also pointed out the importance of personalisation in everyday goods. “For example, targeting ads for washing machine liquid requires knowing who owns a washing machine to avoid wasted ad spend,” Apte explained.

Soni described both online and offline methods for collecting first-party data. “Online, we use tracking pixels and run quizzes to gather consumer details,” he said. “Offline, data is collected through in-store interactions or credit card sign-ups.”

Surath reinforced that consent-based first-party data is vital for maintaining personalised customer relationships in the face of growing privacy concerns.

Effective segmentation and continuous data enrichment drive campaign success

Soni stressed the importance of segmentation for crafting effective communication. 

“Segmentation sharpens targeting and personalisation,” he explained, using a QSR restaurant example. “Segmenting data by veg versus non-veg orders leads to tailored communication,” he said.

Soni further highlighted that segmentation improves digital campaign efficiency. “Customising communication increases effectiveness and reduces costs per interaction in auction-based digital media. First-party data has a shelf life. Enrichment keeps it fresh. For instance, after purchasing an air conditioner, retargeting for extended warranties requires updated data,” he said.

Soni expressed that there are two key enrichment methods: continuous campaigns to gather more data attributes and data clean rooms, which allow for privacy-focused data exchanges with third parties.

Surath added that different industries use data enrichment differently. “Banks anonymise and enrich data for marketing, while D2C companies might partner to expand their data sets,” he noted.

Surath accentuated the need for regular engagement with data, regardless of its size or maturity, to drive results and maintain relevance.

Innovative approaches to data and consumer engagement

The panellists explored how data is transforming consumer engagement.

Apte began by reflecting on Unilever’s early data initiatives. “We once had a program (kan khajura tesan) where consumers gave a missed call and received a voice call with entertainment. This helped us understand local markets by collecting data on preferences and phone numbers.” 

He also highlighted a recent success with Cornetto’s partnership with Spotify in Pakistan. 

“By placing a QR code on Cornetto packs, we exchanged consumer data for a free month of Spotify, which incentivised engagement effectively,” he said.

Udyavar shared examples of leveraging first-party data for impressive results. “Tata Soulfull connected with Punjabis by greeting them with a ‘Happy Lohri’ message. This emotional touch, combined with first-party data, enhanced engagement and boosted sales.” He also noted Maggi’s success: “Targeting WhatsApp users who liked Korean shows with Korean noodles doubled sales. Even for low-involvement products, relevant data-driven messaging drives results.”

Expanding on global examples, Udyavar cited Nespresso in Brazil. “Nespresso used first-party data for chatbot reminders, resulting in a 1.5x increase in orders and 30% lower acquisition costs. It’s about using data effectively across the right communication channels.”

Soni outlined the stages of data maturity: “Start with audience managers or conversion pixels from DSPs like Meta or Google to collect interaction data. Next, connect the dots with dynamic creative optimisation. At a mature stage, use data management platforms (DMPs) or customer data platforms (CDPs) to centralise and de-duplicate data.”

Surath also discussed data maturity stages with the atta (unsorted wheat flour) category example: “Initially, one will identify buyers and their interests. As data accumulates, they will serve targeted ads— for multigrain atta in one city, regular in another. At an advanced stage, they will create personalised atta mixes based on preferences. The goal is to continually refine data strategies.”

Navigating data privacy and regulatory frameworks

Apte brought up two additional considerations that organisations must address when navigating data privacy and compliance. “One is, where is the organisation based and what are their internal rules? For example, many agencies have different standards around data privacy,” he noted. 

Apte emphasised that local companies in India face distinct regulations compared to global firms. “From a regulatory point of view, over the last couple of years, we’ve seen significant developments. First, of course, is the Digital Protection Act 2023, which is already in place. That’s the first piece of the puzzle. There are also a couple of more regulations in the pipeline, particularly around competition,” he added. 

Apte was optimistic that once these laws are fully implemented, India would have a robust regulatory framework for data advocacy, mirroring practices in the West, but with India-specific nuances. “We’ve already seen how the Digital Protection Act has shaped things, and the upcoming bills are likely to follow a similar trajectory," Apte added. 

Surath echoed Apte’s thoughts, adding a practical dimension to the regulatory landscape. 

“There’s a lot of work that needs to be done when businesses start this journey, from operational aspects like data storage to the legality of holding that data and obtaining consent,” he signed off. 

Source: MANIFEST MEDIA

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