How the Grocery Industry Can Collect and Use First-Party Data
Our recent blog on trends in Grocery laid out the trends impacting the grocery industry at large. This week we’ll dive into first-party data and how it’s become one of the biggest efforts in grocery. Collected straight from consumers first-party data is the gold standard for optimizing the customer experience. However, accessing and leveraging the data isn’t as easy as its third-party data counterparts. Despite the challenges demand continues to grow, 88% of marketers say gathering first-party data is more important than it was two years ago.
If your company isn’t keeping up, your customer experience can fall behind. Knowing the right ways to collect first-party data and use it effectively is critical to staying ahead.
What is First-Party Data?
Before we dive in let’s take a second to define first-party data and what it means in the grocery space. First-party data comes directly from customers, for example, when a customer signs up for your loyalty rewards program you receive their data first-hand when they fill in their information. It also can come from their digital behavior and shopping choices such as their favorite products, how often they shop, and what digital coupons they select. Historically, businesses have relied on third-party data to understand consumer behavior, but as data privacy policies have changed, so have data collection practices. In general, in the grocery space, first-party data is a great way to get to the heart of what makes your customers tick, helping you understand their patterns and behaviors along the way.
Giving Your Customers the Why
First-party data comes directly from your consumers, which means it’s your job to convince them to give you access to it. One of the best ways you can do that, while at the same time improving the overall customer experience process, is through a mobile app refresh that is tailored to your unique brand and consumer. Creating an impactful mobile experience that keeps your consumers engaged with your brand not only gives you an avenue for collecting data, it can also improve brand engagement and loyalty in the long run.
Meaningful Partnerships for Meaningful Data
Everyone is in search of first-party data, and the right partnerships can help you build a more robust data set for your customers. Building strong relationships across the CPG and grocery store spectrum means you and your partners can benefit from increased access to data. Partnerships like these improve the customer experience across the entire grocery landscape, meaning customers can have better access to the products they need in the way they need them.
Understanding Your Data
Once you’ve begun to collect the data you need it’s only as valuable as what your team can do with it. Leveraging tools like AI you can implement a robust predictive analytics program that can help your business make faster and better-informed decisions. Powering your AI solutions with first-party data can help you better predict the needs of your shoppers and offer the products and services that will drive sales and build brand loyalty.
Data collection doesn’t need to feel like the Wild West, with the right strategy and partner your team can collect and use the data it needs to wow your customers. That’s what we’re here for, Shockoe has worked in the grocery space for over 10 years supporting teams big and small to create measurable, intuitive experiences. Get in touch with us today to get started on yours.