The role of the CMO, CTO & CIO in building a first-party data strategy
All three of these functions need to recognize that the value of direct engagements with the customers will increase. And that has implications from a marketing as well as technology perspective. Because ultimately, what advertisers need to think is, “how are we going to create those consumer connections?” Those valuable engagements happen across multiple touchpoints and the leadership team needs to think about how they can build the brand ecosystem around this reality.
Technology, information management, and marketing need to figure out effective ways to build direct relationships with their consumers. Creating a two-way value exchange in which the consumer gets something, and the brand gets their data, will be mutually rewarding. The bottom line is that these functions need to orchestrate how this new operating model works across the organization.
It is easier said than done but communication is key. Asking the right questions and collectively exploring solutions can work wonders and help navigate the toughest conversations. Business leaders are custodians of their respective brands and must put themselves in the customer’s shoes.
Here are some key questions that can serve as a crude checklist to set the foundation of a first-party data ecosystem.
The latter is a technological challenge which is where the technology function steps in, as it typically has visibility about the data a brand is already collecting from its customers
Key components for marketing and sales to capture first-party data
It starts with identifying gaps and opportunities in the consumer experience with online as well as offline transactions. The data can be channeled into walled gardens, maybe even using some AI technology for identification. Marketers need to create experiences that allow them to engage with those consumers. Don’t forget, meaningful interactions trump transactional interactions.
For example, if you are a car manufacturer, what kinds of experiences are you going to provide to your customers, before and after the purchase to create that relationship with them? You can help them choose the perfect product fit. Deliver after-sales services that are an extension of the brand experience. This way, you build a relationship where trust is the reward. Once you win consumer trust, you nurture that relationship over time.
5 Ways in which a CMO, CTO, and CIO can contribute to building an active First-Party Data Strategy
Collaborative Planning: The Chief Marketing Officer (CMO), Chief Technology Officer (CTO), and Chief Information Officer (CIO) should collaborate to develop a cohesive first-party data strategy. This should involve identifying the types of data that are most relevant to marketing campaigns, as well as the technology infrastructure needed to capture, store, and analyze the data.
Data Governance: The CIO can contribute to the first-party data strategy by developing data governance policies that ensure the accuracy, consistency, and security of the data. This includes defining data ownership, establishing data quality standards, and implementing appropriate data security measures.
Data Integration: The CTO can contribute to the first-party data strategy by ensuring that the technology infrastructure supports the integration of data from multiple sources. This may involve implementing data warehouses, data lakes, or other tools that can aggregate and analyze data from different systems and applications.
Analytics: The CMO can contribute to the first-party data strategy by leveraging analytics tools to gain insights into customer behavior and preferences. This includes identifying key metrics that measure the success of marketing campaigns, such as conversion rates, customer lifetime value, and customer retention rates.
Personalization: All three executives can contribute to the first-party data strategy by using data to personalize the customer experience. This includes creating targeted marketing campaigns, developing personalized product recommendations, and providing customized customer service. By leveraging first-party data, companies can create a more personalized and engaging customer experience, which can lead to increased customer loyalty and revenue growth.