Consumer packaged goods (CPGs) person historically relied connected third-party information for their marque selling efforts. This strategy is owed for a alteration arsenic the information and selling landscapes evolve.
CPGs person the accidental to amended concern outcomes by leveraging first-party data. In this article, we volition explore:
- CPGs’ reliance connected third-party data.
- How utilizing a CDP tin assistance CPGs harness the worth of first-party data.
- The challenges CPGs indispensable flooded to afloat recognize worth with a CDP.
- How to guarantee first-party information drives ongoing ROI for CPGs.
CPGs and third-party audiences
To assistance conscionable their marque selling goals, CPGs person chiefly focused budgets connected the highly scalable third-party audiences curated by vendors and bureau partners. But the slow deprecation of third-party cookies has whittled distant astatine the prime of galore third-party audiences, forcing CPGs to look elsewhere for businesslike yet scalable solutions.
On apical of that, galore of the media measurement approaches (e.g., marque assistance survey, advertisement impression/frequency management) trust heavy connected third-party cookies. Unfortunately, determination is nary third-party information panacea. The solution is simply a premix of tactics, including first-party audiences activated via walled gardens (Facebook, YouTube, Amazon, Tiktok, etc.).
While CPGs person mostly relied connected intermediaries (i.e., retailers) to ain the nonstop user acquisition experience, successful caller years, galore brands person been investing much and much successful direct-to-consumer efforts.
In truthful doing, they’ve generated affluent user acquisition and engagement information ripe for monetization successful respective ways. However, they often person fledgling email communications inactive focused much connected monthly merchandise messaging vs. consumer-segmented and personalized content.
Dig deeper: How B2B marketers tin activate first-party information successful their CDP
How a CDP helps CPGs harness the worth of first-party data
The circumstantial worth that customer information platforms (CDPs) alteration varies somewhat from institution to company. However, the ones adjacent the apical of astir lists are arsenic follows.
Evolving and diversifying the media assemblage strategy beyond third-party audiences
Activating first-party audiences successful media is the astir nonstop way to worth for CPGs. First-party audiences tin beryllium activated successful programmatic media to:
- Deepen user relationships done personalization and retargeting.
- Drive user acquisition done much scalable look-a-like audiences.
Both tactics tin beryllium layered into existing media plans to supply outsized media fund efficiency.
CDPs excel arsenic the captious exertion conduit betwixt first-party information sources (e.g., website, email, transactional, consent management), enabling assemblage instauration and streamlined integrations with media activation endpoints.
One CPG marketer was capable to physique a marque involvement assemblage based connected assorted first-party information signals (e.g., email and website contented engagement) and seamlessly onboard it to their societal and show endpoints. From there, the media squad extended the scope of these seeds by modeling them retired arsenic lookalike audiences. The result was supra mean ROI for this first-party lookalike compared to different third-party purchase-based targets
Establishing (or replacing) centralized assemblage activation management
Centralized assemblage activation absorption is simply a captious worth constituent for galore CPGs arsenic information absorption platforms (DMPs) are being abandoned faster than the third-party cooky itself.
Streamlined, centralized curation and activation of first-party audiences is an operational necessity for CPGs having galore brands dispersed crossed assorted selling teams. Success successful this country requires collaborative readying to get the close squad and processes successful spot from the start. Done wrong, this tin severely bounds automation, reusability and scalability crossed brands.
Another CPG established an Audience Center of Excellence (COE), which provided portfolio-wide assemblage strategy, coordination and enactment crossed some first-party and third-party audiences.
This COE squad leveraged the CDP to signifier and streamline their first-party assemblage integrations with downstream activation platforms moving crossed 10+ brands and 4+ media agencies.
This shortened the time-to-market by 2 to 3 weeks for first-party assemblage activations successful media channels, enabling the marque teams to beryllium much nimble successful their assemblage targeting passim each quarterly campaign.
Enabling personalization and direct-to-consumer efforts
Delivering engaging experiences is cardinal to deepening direct-to-consumer marque relationships, driving the acquisition of caller consumers and, ultimately, concern growth. The aforementioned assemblage management, coupled with segmentation and contented affinity capabilities, spot CDPs precocious connected the tech enabler database for CPGs funny successful a much robust owned transmission (e.g., email, website, apps) personalization.
A CPG tested their CDP’s website contented affinity recommendations to powerfulness accordant user travel segmentation and messaging crossed email, website and societal media starring to an wide summation successful user engagement.
Deepening user insights
CPGs often bash not person existing lawsuit information environments (lakes oregon warehouses) for user reporting oregon insights projects. Because the CDP houses affluent lawsuit and illustration data, it tin besides beryllium leveraged arsenic a starting constituent for CPGs to unlock lawsuit analytics and reporting.
This information enables CPGs to way important user cohorts and goals. Surfacing user insights into broader merchandise and marque strategy tin widen the worth of CDPs beyond nonstop first-party assemblage activations.
Other CPGs are capitalizing connected CDP integrations with data cleanable rooms to uncover user and measurement insights that substance their acquisition, retention and broader advertizing strategy. One planetary CPG exported Lytics CDP audiences to Liveramp to harvester first-party audiences, Liveramp’s individuality solution and third-party information to make caller user insights.
It’s important to note, though, that this effort volition necessitate cross-functional information engineering, IT, legal, analytics and insights teams to basal up and support an analytical situation to store, analyze, visualize and extract insights.
3 challenges CPGs indispensable flooded to afloat recognize worth with a CDP
Attaining the worth supra requires coagulated implementation, adoption and measurement. Here are the cardinal challenges peculiarly important for CPGs to see to win successful driving worth from their first-party information with a CDP.
Challenge: Fragmentation
Fragmentation comes successful 3 forms — operational, information and technology.
- Operational fragmentation: The integer scenery wrong CPGs is often owned and managed by assorted interior and outer teams.
- Data fragmentation: A communal by-product of operational fragmentation is information fragmentation. The galore brands and lines of businesses wrong a CPG apt person fundamentally antithetic concern models and user bases oregon simply antithetic information maturity levels. No substance the reason, oftentimes, determination volition beryllium varying information schemas, naming conventions and inconsistently collected/defined information attributes.
- Technology fragmentation: Another communal byproduct of operational fragmentation is exertion fragmentation wherein the assorted CPG brands and lines of concern marque autarkic (siloed) exertion infrastructure decisions. This tin beryllium thing from tag absorption tools to ESPs to information lakes.
Considerations
- Carving retired find clip to papers and representation retired operational, information and exertion requirements based connected usage cases is paramount.
- A common, normalized CDP information exemplary tin beryllium a captious enabler of scalability and orchestration wrong CDPs — careless of underlying operational oregon information fragmentation
Challenge: CDP adoption
It tin beryllium hard to thrust instrumentality and process utilization crossed disparate brands, lines of concern and selling teams wrong a CPG. This is wherever galore CDP deployments stall erstwhile the information and tech are ready, but determination aren’t teams with the capableness oregon applicable usage cases to utilize the caller capability.
Considerations
- Establish a user information halfway of excellence, the enablement squad comprised of cross-functional leads and CDP powerfulness users.
- Knowledge absorption successful the mode of training, implementation documentation and interior roadshows.
Challenge: Measurement
Without planned measurement, it tin beryllium hard to cipher the worth of a CDP investment. An evergreen request for immoderate large concern is ongoing ROI measurement to enactment ongoing concern justification and thrust meaningful worth to the organization.
This tin beryllium particularly challenging for CPGs wherever connecting income to idiosyncratic consumers isn’t feasible extracurricular of smaller direct-to-consumer (DTC) programs.
Considerations
- Metric/KPI frameworks.
- Plan ROI measurement from the beginning, including power radical management.
- Market-based income assistance testing.
- Run DTC marque impervious of concepts (POCs).
- Marketing taxonomy/naming conventions to alteration streamlined measurement.
Dig deeper: How to guarantee the occurrence of your CDP initiative
How to guarantee first-party information drives concern outcomes
While determination are galore ways for CPGs to amended concern outcomes with first-party data, galore challenges are lurking successful the shadows.
Most CPGs are under-prepared for the method and operational requirements needed to present value-added user experiences needed to deepen their relationships with consumers.
So what tin beryllium done to guarantee your first-party information plus provides concern value, enables first-party objectives and drives ongoing ROI? Consider the following.
Use lawsuit discovery
Build retired an interdepartmental activation and analytics usage lawsuit backlog earlier you prime your CDP to guarantee that your method requirements tin beryllium met (e.g., real-time personalization). Then support it prioritized to guarantee the absorption remains connected the usage cases that thrust ROI
Accelerate adoption
Plan for the cross-functional assets allocation, caller roles and workflows that volition beryllium required to guarantee palmy implementation of your CDP and broader first-party information strategy
Data enrichments
Identify usage lawsuit information gaps that tin beryllium augmented with information enrichments, either done information subject modeling oregon second/third-party information appends.
Analytics and measurement roadmap
Plan your ROI measurement needs for usage cases and wide CDP concern from the opening to guarantee you person the close power groups and investigating methodology successful place.
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Opinions expressed successful this nonfiction are those of the impermanent writer and not needfully MarTech. Staff authors are listed here.
About the author
Jeremy Brugger is simply a Solutions Architect astatine Actable. With 14+ years of integer marketing, analytics, selling exertion and insights acquisition connected some bureau and lawsuit side, his absorption is accelerating lawsuit information initiatives, influencing selling exertion architecture, and designing metrics frameworks to thrust integer translation astatine large enterprises, including Clorox, Nestlé Purina, Enterprise Holdings and Kellogg’s.