Time for Brands to be in the Driver Seat of Customer Data

One of the most valuable assets of a brand today is its customer data. High-quality data enables better decision-making and illuminates untapped opportunities. It reduces business risk and prevents leaders from investing in blind products or niches. And in today’s hyper-competitive world, good customer data is how brands really separate themselves in the marketplace.

“The challenge many brands face today is a lack of ownership of customer data. For many eCommerce businesses, the convenience of using “vendor apps” within their Shopify stack – such as emails, reviews, quizzes and loyalty tools – offers a quick go-to-market solution. However, this creates a fragmented martech stack where each vendor, including Shopify, controls a piece of the customer data puzzle.

As a result, brands often rely on external data that can only describe broad patterns and behaviors across groups, rather than gaining actionable insights about individual customers. While brands may identify demographic traits or online activity as indicators of loyalty, they lack the ability to understand or act on specific individual preferences, limiting their ability to build deeper, personalized connections with customers.”

Brands that own their customer data don’t have to make as many assumptions about what their buyers want. Instead, they can allocate resources where they know there is value, creating a significant strategic advantage. The good news is that moving to the zero or first side of data thinking doesn’t have to be a complicated process. Leaders simply need to recognize the value of owning customer data and then build the capabilities or adopt tools that allow them to take full advantage of all the benefits that are within reach through a methodical process.

Advantages of using zero and first party data

Zero-party data is information that consumers provide directly to brands through channels such as polls, surveys, and chats. First-party data is information that brands collect about customers based on their interactions with brands through web or mobile apps. In both cases, the company owns the data and can usually assign it to a specific person. As a result, brands can personalize incentives and content based on individual preferences, creating better overall brand experiences for important customers.

When customers feel understood and valued, they reward brands with lasting loyalty. Not only do they continue to buy, but they also become vocal advocates and promote the brand to others. Authentic advocacy has huge benefits for a brand, leading to organic user growth (reduced CAC) and revenue growth. Personalized experiences build trust and turn customers into champions who drive revenue through referrals and higher personal spend. These loyal customers are more likely to stay with the brand over time and increase their purchases, creating a solid foundation for sustainable growth.

Additionally, companies that collect and own customer data can not only optimize the customer journey, but also develop experiences to meet the customer on their individual brand journey. Brands can intentionally solicit feedback from consumers to discover their unmet needs. Knowing more about individual consumers not only enables clarity in product investments, but also empowers everyone in the go-to-market process. Marketing, sales and customer success staff can delight individuals in every interaction with the brand.

Marketing Technology News: MarTech Interview with Aman Sareen, CEO @ Aarki

Ensuring data control and quality

Another advantage of zero- and first-party data is that brands have more control over data quality. They can choose how and when to collect customer information. They can implement robust security measures to protect data integrity and ensure that they collect as much information as is needed to perform an action. Data enrichment is also much easier when a brand owns a larger portion of the data feed. If a company decides to add a new field or form, it can incorporate those data points into what it already knows about an individual’s preferences.

Third-party data is inherently unreliable for brands, as it often comes with inaccuracies or errors depending on the source. Its transitory nature means that it can change or disappear over time, making it difficult to infer consistent long-term trends or patterns. Brands that rely solely on third-party data often need to merge multiple external sources, adding complexity and potential inaccuracies.

Additionally, there is no guarantee that third-party data will remain accessible. For example, Google’s long-awaited move to phase out web cookies—later postponed—highlighted the vulnerability of marketers dependent on such data. Brands that rely heavily on external data expose themselves to unnecessary risks, undermining their ability to create stable data-driven strategies.

The future of the brand

Moving to your own customer data model is an effective way to future-proof your brand. Less reliance on data owned by others means more power to improve sales, marketing and customer engagement. Brands can stay in the driver’s seat and invest more deeply in relationships with individuals, rather than acting on common denominator characteristics within larger groups. They can also alleviate customer concerns about topics such as data security and data privacy.

Building customer data capacity is one of the best ways to differentiate yourself from the competition and adapt to the modern age. Consumers today have more influence over brands than ever before. People can easily find cheaper alternatives and switch between companies with minimal funds. By collecting and using customer data well, brands can deliver exceptional offers that others cannot replicate. Those who do it long-term make it difficult for customers to leave and start a new relationship with an unfamiliar brand. Customer data is a key pillar of success in today’s world.

Marketing Technology News: Tune in: How Podcast Advertising is Changing the Marketing Game