Research from Twilio, a customer engagement platform, shows that first-party data is fundamental to driving marketing success and, by extension, business success.
Twilio’s fourth annual State of Customer Engagement Report reveals that nine in ten (89 per cent) companies agree that using first-party data in marketing improves customer experiences.
However, two years on from Apple’s IDFA changes, over half (53 per cent) of UK organisations still rely on third-party data. Three in ten (29 per cent) report using an even mix of third-party and first-party data, 14 per cent use mostly first-party data, and just 5 per cent use only first-party customer data.
Preparing for a cookieless future
While Google has postponed its deadline for the phaseout of third-party cookies in Chrome until 2024, the research suggests that the end of cookies is as much about customer demand as it is about their use stopping.
As previously reported, consumers are running out of patience with cookies. Nearly one-third (32 per cent) of UK consumers always or often reject cookies on websites, and half (50 per cent) of UK consumers have left a site in the past 12 months rather than accepting cookies.
The data shows that seven in ten (71 per cent) consumers trust that the brands they do business with will only use first-party data in personalisation – revealing a major gap between what consumers expect and current marketing practices.
Organisations have a long way to go to catch up, yet only a third of UK brands (33 per cent) report that shifting to first-party data is a critical priority, and just four in ten (38 per cent) UK companies are prioritising first-party data as part of their personalisation strategy.
“Brands shouldn’t see the transition to first-party data as something that is being forced upon them,” said Sam Richardson, customer engagement consultant at Twilio. “First-party data comes directly from consumers, so it is more accurate and better reflects present demand. This means there’s a massive opportunity here for companies to deliver safe, secure, and highly personalised customer experiences and can have a positive impact on their bottom line. With huge potential gains for customer engagement and long-term loyalty, first-party data must be at the core of any successful marketing strategy.”