Why this type of data is the gold your business has been sleeping on
One misconception we commonly hear when talking about loyalty programs is that the only benefit they have is the rewards or points systems that they have in place. This is technically true, but it is far from being the only benefit of it.
Let’s look at it from the business perspective: what could be so beneficial about having your customers sign up for a loyalty program where you have immediate access to their shopping preferences, cart lifetime, saved items, and more?
We’ve gone on and on about the benefits of loyalty programs, but we’ve never really focused on the one massive benefit: giving immediate access to valuable data that places you at a non-debatable advantage against your competitors.
What is P1 data?
P1 Data, or 1P Data, is an acronym commonly used to connote first-party data. This data is information collected and owned by a company directly from its consumers. Examples of this data can be digital interactions, purchase history, consumer behavior patterns, preferences, etc.
This information is normally collected through software and systems owned by the company, and can be used for everything from creating ads to content, and even for marketing activation ideas.
This data serves one goal: customer experience management, meaning enhancing the customer experience through creating content that caters to their individual interests. For companies that collect this data primarily through their loyalty programs, this can aid them for customer loyalty management, which is beneficial in retaining your customers on the long-term.
What is the advantage of collecting P1 data?
Research has found that it is less expensive and more beneficial for the business to work on retaining existing customers than spending money on marketing towards new ones.
In fact, repeat customers are more likely to spend 33% more with a brand than new ones are. But for years, businesses have relied on third-party data sources to collect their data and enhance their targeting strategies, when they could be the ones doing this all along.
Third-party data collection happens when businesses get to know their customers by hiring another company to collect their data. This is beneficial if you’re looking to acquire new customers, but a disadvantage behind this form of data collection is the fact that it places yet another degree of separation between you and your customer.
Customers nowadays are tired of the impersonal shopping experience, which is why small businesses are on the rise nowadays: they provide just the kind of personal, intimate shopping experience people crave.
Your business could enhance their experience too! Through P1 data collection, you’re able to get to know your customer on a more enhanced level, gathering such personal data that helps you create a personalised and highly targeted experience to drive brand loyalty and retention. Simply put, it is the basic foundation of any business-consumer relationship.
This is exactly the kind of data you need to form a one-on-one relationship. It’s free, can be done in house, and it is all yours to use.
Why you should collect P1 data
We’ve gone over the many benefits of P1 data, but overall, it could be what sets you apart from your competitors. It will surely be what makes your customers feel seen and heard, and what will give your customers a shopping experience so unique and enjoyable they won’t be able to turn down.
This is the first step towards building yourself a solid consumer base, with loyal customers that will stand through your business through thick and thin. That is of course, until you do something that truly throws them off the edge.
You can start collecting P1 data through your website, loyalty program app, loyalty program platforms, and others. Any good loyalty program that works has already started using them, such as loyalty programs in the UAE for instance.