The rising worth of first-party knowledge has created a little bit of a “gold rush” mentality. Corporations are listening to that first-party knowledge represents unrealized advertising and marketing worth, in order that they’re mistaking the purpose as amassing as a lot first-party knowledge as attainable.

However first-party knowledge is much more like crude oil than gold. It doesn’t have inherent worth. First-party knowledge must be refined and used successfully to create worth.

Listed below are three widespread missteps firms are making that stop them from absolutely realizing the worth of their first-party knowledge:

Mistake #1: Not amassing the suitable knowledge

When firms default to the “extra is extra” mindset, they accumulate any first-party knowledge they will consider. They find yourself storing huge quantities of information they haven’t any deliberate use for — or knowledge that appears fascinating on the floor however they will’t attribute reliably.

On the flip facet, some firms aren’t considering large enough. We’ve seen firms dumping knowledge they didn’t have a use case for immediately – solely to understand a yr later they might have used it.

Defining your knowledge and getting particular about your use case(s) needs to be the place to begin for any advertising and marketing transformation initiative. Take into consideration methods you possibly can motion on knowledge proper now, and picture the way you would possibly use different knowledge sooner or later as you construct momentum and class in your data-driven advertising and marketing.

Mistake #2: Not constructing a strong first-party knowledge construction

Typically, enterprise leaders are inclined to give attention to the good knowledge and essentially the most advanced/refined use instances. Within the course of, they overlook the significance of constructing a strong first-party knowledge construction.

Core knowledge, like contact identify, correct postal tackle, electronic mail, cellphone, cell, and so forth., isn’t thrilling, however it’s completely essential. With out a correct knowledge basis, it’s troublesome to construct a data-driven buyer journey.

For instance, when companies wish to use first-party buy knowledge to drive nurturing campaigns, they have a look at the “what” and the “how” of the acquisition knowledge — as an alternative of beginning with the “who” and ensuring they’ve correct electronic mail addresses to match to that buy knowledge. Unbelievable buyer intelligence inside firms’ personal ecosystems, however you possibly can’t go deep into that intelligence if the essential core buyer knowledge is riddled with errors.

Organising that core first-party knowledge construction is crucial to creating the remainder of your first-party knowledge usable.

CIOs, CMOs and chief knowledge officers have to ask powerful questions round that core knowledge: How can we validate the integrity of this info? What are the fill charges we have to get higher-quality knowledge? After these questions are answered, join the core knowledge to deeper knowledge units.

Mistake #3: Onboarding too slowly

Let’s say you’ve discovered a use case: utilizing gross sales knowledge to robotically set off hyper-personalized provides in your buyer loyalty program.

Now, it’s worthwhile to onboard that gross sales knowledge by matching the core buyer knowledge (identify, electronic mail, and so forth.) with the precise gross sales/buy knowledge. It is advisable to precisely match the suitable buy knowledge to the suitable core buyer knowledge. You must also concurrently validate (once more) that the core knowledge is correct. Confirm the client hasn’t moved, the e-mail tackle continues to be legitimate, and so forth.

All of those steps have to occur quick. The entire thought is “proper buyer, proper time,” in spite of everything. Relevance of buyer intelligence fades by the hour. And core buyer knowledge can be extra dynamic than most notice. For instance, one p.c of shoppers transfer each month.

This knowledge onboarding and validation is the place a variety of firms get hung up. Some don’t do a very good job matching knowledge and filling gaps, in order that they’re working with inaccurate knowledge and/or aren’t ready to make use of a variety of their knowledge. However the greater drawback is firms typically take so lengthy on the “match and patch” course of – weeks and even months – their “data-driven advertising and marketing” efforts are fueled by dated knowledge.

With out pace, firms are lacking alternatives as a result of they will’t act quick sufficient to be related. Simply as unhealthy, they’re losing cash on advertising and marketing for outdated targets.

Placing all of it collectively: Three keys to activating first-party knowledge

We’ve seen firms large and small – together with refined advertising and marketing organizations with large budgets and fancy tech stacks – making all three of those errors. However we’ve additionally had a front-row seat to how essentially the most profitable advertising and marketing transformations come to life.

The primary secret’s specializing in the suitable knowledge – not making an attempt to do an excessive amount of or beginning with essentially the most advanced use instances.

With that tightened focus, the second secret’s constructing the info hygiene of your core buyer knowledge. Knowledge integrity means creating processes to make sure you’re getting the fill charges it’s worthwhile to seize core knowledge and utilizing instruments to assist validate and fill gaps in that core knowledge (like new mover databases) to enhance attribution and match charges.

The third (and arguably most vital) secret’s onboarding quickly – ideally matching and re-validating in 24 hours or much less. As a result of capturing the very best knowledge on the planet doesn’t quantity to a lot should you can’t use it whereas it’s nonetheless related.