In the blog, Why First-Party Data Should Be Your No. 1 Priority, we explored the first-party-data challenge and how brands can collect consumer data to inform and optimize their marketing messages.

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Now, let’s dive into how consumer goods brands are in a unique position to benefit from first-party data.

What are the challenges CPG brands face?

As discussed in our previous blog, privacy laws and regulations—like GDPR and CCPA—will impact the effectiveness of cookie tracking and the importance of first-party data in effectively marketing to consumers.

In particular, CPG companies are at an initial disadvantage to gathering first-party data due to their reliance on retail partners and third-party distribution channels to get their products to consumers.

If you’re still using these channels, don’t worry. You can continue working with your vendors and partners and begin to collect the first-party data that will inform your marketing efforts for years to come.

The value of first-party data

First-party data provides the ingredients for understanding how your consumers engage with you, when they buy your products, and what they want from you as far as content. This data also helps you more effectively market to your consumers, engaging them in personalized experiences that stop them from choosing a competitor.

By embarking on a digital transformation, CPG companies can collect first-party data straight from website visitors, app users, and/or DTC shoppers. Then, brands can use that data to leverage tailored, targeted marketing messages to meet consumers online, on any channel, in real time.

All it takes is embracing a growth mindset and changing a few traditional business practices.

Shifting to a digital-first approach

Many brands adopted ecommerce channels to connect with consumers when the pandemic changed how we all interact with brands and each other. Consumer goods brands were among many that quickly implemented direct-to-consumer strategies to learn how consumer expectations were changing and what they needed to provide to stay relevant.

How to Deliver Personalized, Customer-Centric Omnichannel Media Experiences

Even before the pandemic, CPG brands began to realize the benefits of DTC channels for growing sales and providing a high-quality customer experience to shoppers.

Embracing a digital-first approach to gathering first-party data allows CPG companies to understand how consumers engage with them in multi-touch journeys. Knowing how consumers are using more digital touchpoints helps you provide a consistent presence across all your digital and offline channels.

Doing so now gives you the chance to get ahead of the impending cookie-tracking changes that will increase the importance of first-party data in deploying effective marketing tactics. And it allows CPG companies to anticipate ever-changing consumer behavior, which already looks drastically different than it did before the pandemic.

How to approach collecting first-party data

CPG brands should consider implementing or optimizing their digital channels, including brand microsites, DTC offerings, and other online experiences. Most of these channels offer product details and answer FAQs, but they can also ask consumers to provide personal data in exchange for special offers like coupons and discount codes.

With a DTC site, brands can sell their products directly to shoppers looking to purchase right now—giving them access to purchase data. Brands can then follow up with consumers about new product lines, promotions, and repeatable purchase reminders.

If you’re looking to begin gathering this data, consider asking consumers what they want, what they need, and how they feel. You can also leverage consumer surveys, and online browsing and search behavior, as well as customer service data to gain a deeper understanding of your consumers.

Another technique for capturing first-party consumer data is by hosting sweepstakes. As an engaging mechanism for consumers to share their initial contact information and opt-in consent, sweepstakes provide them with an item of value—a cash prize or a prize box full of your products—they’re willing to exchange for an email address. By tracking which sweepstakes consumers enter, you can infer their product preferences with your brand.

To add depth to your consumer data, add a question to your sweepstakes opt-in form. Asking what their favorite flavor of snack chips, their preferred scent of lotion, or choice pattern on paper towels in addition to capturing their email address allows brands to begin the relationship by providing personalized experiences based on the data provided.

Engage consumers at every micro-moment with DEG

Why First-Party Data Should Be Your No. 1 Priority

Whether you’re a veteran first-party-data collector or just getting started—or even looking to kick off a DTC strategy—we can help. At DEG, we work with leading national and global brands to place the consumer at the center of marketing and business practices, uncovering insights that deliver results.

If you’re ready to start gathering valuable consumer data, schedule a quick call with one of our experts.

Keep in touch.

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