By Our Correspondent
The chief executive officer of Terragon, Mr Elo Umeh has said that ownership of customers’ first-party data is very critical in the survival of any brand.
Umeh who explained this during a chat with our correspondent in his office stated that, “first party customer data is the most valuable data businesses own and is the starting point for any form of customer engagement. Now more than ever, the need for businesses to own and
manage first-party data could be the difference between staying in
business or going under.
“Customer behaviour is dynamic and ever-changing as well as the landscape within which they operate.
The first step towards understanding and responding to customer needs is through data – to prevent churn and increase lifetime value.”
First-party data refers to information brands collect directly from their customers or audiences, from various touchpoints such as Customer Relationship Management (CRM) software, actions or interests
demonstrated across websites or apps, customer feedback, completed
customer surveys, forms, etc. First-party data is usually consented to and so privacy concerns surrounding it is minimal.
Speaking on how some forward-thinking brands are taking advantage of first-party data, the Terragon boss said, “Our Customer Data Platform (CDP) was used by a top global FMCG Brand in Nigeria to surpass their target of building a verified database of their customers with one
million first-party data. Owing to the success of the previous target, the brand is currently in discussion with us to grow that database to four million this year.”
He added, “A number of Top Tier banks have also been using our CDP to
enrich their first-party database for various levels of customer
engagement including cross-selling and upselling their products and they have reported an improvement in returns on their Ad spend.”
Over the years customer journey has become a multi-platform and multi-device, such that their footprint goes across various touchpoints including desktops, mobile phones, TVs, apps, watches and lots more – thereby creating the need for Advertisers to have a unified view of each customer.
“With the help of a number of tracking methods – including the use of
third-party cookies, advertisers have been able to collect data and follow customer journeys and tailor ads to suit their preference and interests.
However, with customers’ increased attention to data privacy, stricter regulations to enforce compliance and phasing out third-party cookies especially by Google Chrome which tracks over 60 per cent of internet users, the ability to track customers and serve personalised Ads this same way is significantly threatened.
While a few solutions are being developed to solve this, the importance of First-Party Data remains a common consensus; giving rise to the importance and need for a software to aggregate and manage data in a privacy-compliant manner – a Customer Data Platform (CDP), Umeh