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RESEARCH
ANALYSIS
First party data is available to a company free of staggered depending on the distance to the branch.
TRENDS
charge; both second- and third-party data incur In addition, new, previously untapped sales areas
additional costs through acquisition. can be identified for the acquisition of new
customers.
However, the aspects of data quality and data
sovereignty are much more important. Since first party • Customer profiling: with profiling, a suitable
data is collected by the company itself, data analysis group is first defined, e.g. customers who
sovereignty is guaranteed since the company has bought product X and then product YZ in the next
direct control over the data and does not dependent on step, this analysis group is examined using several
third parties. With the consent given by the customer or variables and compared with a base group, such as
user, the company can process the data and use it for e.g. customers in the database. The profile
various purposes. provides information on the penetration and
significance of a particular variable within the
The applicable data protection regulations result in analysis group. When scoring, so-called lookalikes
clear differences in connection with third party data. are identified, for instance, people in the base
Strict rules regarding the transmission, use and further group who are most like people in the analysis
processing often reduce the productivity of this data. group. This method can be used on the one hand
Not to mention that you are always dependent on the to identify new potential for cross-sell and upsell,
provider in terms of quality and conformity of the data but also to identify customers who are at risk of
usage. churning.

Personalization options with first party data • Campaign optimization: only communication to a
customer or prospect that promises the highest
As mentioned, first party data provides a lot of personal probability of a response or conversion is
information, including demographic characteristics, considered. Restrictions, such as maximum
response data and the transaction history. By analyzing volume, budget restrictions or contact strategies
this data, new insights into the needs and preferences are also considered. In this way, not only wastage
of existing customers can be derived which can be can be avoided, but also the results and relevance
used in the next step for highly personalized of campaigns improved.
communication. Here are some examples:
With all the advantages that the use of first party data
• Geoanalysis: in geoanalysis, demographic offers, it must be factored in as well that all data
aspects, such as the postal code, from a sources, both online and offline, have to be made
customer's address gets combined with spatial available and merged for analysis and corresponding
information: e.g. the distance between customers processes in order to obtain a 360-degree customer
and a branch can be calculated and visualized. view.◊ (Source: Apteco)
This means that suitable, regional offers can be
included in communication or discounts can be By MediaBUZZ

September 2020: Cybersecurity & Data Safety: perpetual awareness and innovation presupposed 8