Optimising performance marketing strategies in a first-party data era

With the phasing out of third-party data, marketers are increasingly sharpening their strategy to garner first-party data and focussing on identity networks to build direct relationships with their addressable audiences.

Performance marketing is increasingly becoming an important component of brand’s marketing strategies, offering measurable ROI.

Optimising performance marketing strategies

Speaking to Adgully, Dinakar Menon, Business Head, BigTrunk Communications, explained, “In the first-party data era, brands can optimize their marketing strategies by focusing on collecting relevant data directly from customers. This includes transactional data, behavioral data, and preference data. By utilizing advanced analytics tools, brands can analyze the collected data to derive actionable insights, gaining a deeper understanding of customer behaviour and preferences. Leveraging this data, brands can personalize marketing messages and offers for individual customers, leading to higher engagement and conversion rates.”

According to Menon, integrating performance marketing efforts with Customer Relationship Management (CRM) systems ensures seamless communication and consistent messaging across all customer touchpoints throughout the journey. Additionally, brands must ensure compliance with data privacy regulations such as GDPR and CCPA to build trust with customers and mitigate legal risks.

“In a first-party data era, brands and advertisers can optimize their performance marketing strategies by leveraging the wealth of data they collect directly from their customers,” pointed out Dhananjay Arora, Founder & CEO, Kwebmaker.com.

Arora shared some strategies for optimisation:

Data-driven segmentation: Utilize first-party data to segment your audience based on demographics, behaviour, preferences, and other relevant factors. This allows for more targeted and personalized marketing efforts.
Personalization at scale: Use first-party data to personalize messaging, offers, and experiences across various marketing channels. This helps in building stronger connections with customers and driving higher engagement and conversion rates.
Enhanced attribution modeling: With access to detailed first-party data, brands can implement advanced attribution models to accurately attribute conversions to specific marketing touchpoints. This enables better optimization of marketing budgets and resources.
Influencer marketing: Collaborating with influencers relevant to your target audience can generate authentic engagement and drive conversions, especially when combined with performance-based compensation models.

According to Prady, CEO, NP Digital India, “Brands and advertisers can improve their performance marketing strategies by focusing on collecting and analyzing their own customer data. This means they should use the information they gather directly from their customers to understand their needs and preferences better. By doing this, they can create more targeted and personalized marketing campaigns that are likely to be more effective.”

Growing importance of identity networks

Identity networks are assuming greater significance in performance marketing. With transitioning to first-party data, brands need to identify their unknown traffic and invest in identity solutions.

Speaking on ways to build effective identity resolution related to performance marketing platforms, Menon highlighted the following strategies:

Utilize Cross-Device Tracking: Implement technologies and methodologies that allow for accurate cross-device tracking to understand customer interactions across various devices and platforms.
Implement Identity Graphs: Develop comprehensive identity graphs that map out customer identities and their interactions across different touchpoints. This can help in resolving identities accurately and delivering targeted marketing messages.
Collaborate with Identity Networks: Partner with identity networks and platforms that specialize in identity resolution to leverage their expertise and infrastructure.
Invest in Deterministic Data: Prioritize deterministic data sources that provide direct and accurate information about customer identities, such as email addresses or phone numbers, over probabilistic data sources.

To build effective identity resolution in performance marketing platforms, brands can employ strategies like collecting more detailed customer information, using advanced analytics tools to analyze data patterns, and leveraging technologies like cookies and tracking pixels to track user behaviour across different platforms, suggested NP Digital India’s Prady. Additionally, brands can collaborate with identity networks and data providers to enhance their understanding of their customers’ identities and preferences.

Identifying the performance marketing channels in today’s business ecosystem that can give better ROI to brands and marketers, Menon listed the following:

Search Engine Marketing (SEM): Paid search advertising on platforms like Google Ads can yield high ROI due to its intent-driven nature.
Social Media Advertising: Platforms like Facebook, Instagram, and LinkedIn offer highly targeted advertising options that can result in better ROI.
Influencer Marketing: Collaborating with relevant influencers can be a cost-effective way to reach target audiences and drive conversions.
Email Marketing: Email remains a powerful channel for driving sales and nurturing customer relationships, with relatively low costs compared to other channels.
Affiliate Marketing: Partnering with affiliate networks and publishers can result in performance-based advertising where brands pay only for actual conversions.

Prady added here that in today’s business ecosystem, performance marketing channels that often provide better return on investment (ROI) to brands and marketers include social media advertising, search engine marketing (SEM), influencer marketing, email marketing, and affiliate marketing. These channels allow brands to reach their target audience more effectively and measure the results of their campaigns in terms of conversions and sales.

Scope for brand building and enhancing brand loyalty

In this era of measurable results, there is still ample scope for brand building and enhancing brand loyalty, said Kwebmaker.com’s Dhananjay Arora, adding, “Here’s how brands can achieve this:

Focus on customer experience: Delivering exceptional customer experiences across all touchpoints can create positive brand associations and foster loyalty.
Content marketing: Invest in creating high-quality content that resonates with your target audience's interests and pain points. Thoughtful content can help build brand authority and trust over time.
Loyalty programs: Implement loyalty programs that reward customers for repeat purchases, referrals, and other desired behaviors. These programs can strengthen the bond between the brand and its customers.
Brand storytelling: Share compelling stories about your brand's values, mission, and impact to connect with customers on an emotional level. Authentic storytelling can differentiate your brand and build long-term relationships with consumers.”

Menon noted, “In the digital advertising age of quantifiable outcomes, brand building and loyalty remain paramount. While measurable results gauge campaign effectiveness and ROI optimization, they're not the sole indicators of brand triumph.”

According to him, brands can prioritize brand building and loyalty through:

Crafting Engaging Brand Stories: By narrating authentic tales aligned with audience values, brands forge deeper connections and solidify identity.
Delivering Exceptional Experiences: Personalized interactions, prompt service, and surpassing expectations foster lasting loyalty.
Fostering Brand Advocacy: Satisfied customers can amplify positive word-of-mouth, boosting loyalty through referral programs and incentives.
Embracing Social Responsibility: Aligning with meaningful causes builds positive associations and loyalty beyond profit motives.
Tracking Brand Health: Alongside measurable outcomes, monitoring metrics like awareness and sentiment provides insights for improvement.

According to Prady, brands can enhance brand loyalty by focusing on delivering consistent and high-quality products or services, engaging with their customers through personalized interactions, and leveraging data-driven insights to tailor their marketing efforts. By providing value to their customers and building trust over time, brands can foster strong brand loyalty even in a data-driven environment.