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First-party data is key to more revenue in 2022

(Source: Supplied)

First-party data is more valuable than retailers realise. Not only does leveraging it transforms the customer’s buying experience, ultimately resulting in more sales, but it may also be the avenue into a new revenue stream when shared (safe and securely) with vendors. 

Why first-party data matters

First-party data is becoming increasingly valuable for retailers. Third-party targeting options are shrinking, and the tightening of government legislation means third-party information isn’t as useful as it once was. Additionally, users are becoming increasingly privacy-conscious and want their privacy preferences honoured. 

First-party data provide retailers with in-depth information on their customers, which they can then use to maximise their marketing strategies impact and create personalised experiences whilst honouring their customers’ privacy preferences. 

Savvy retailers are already investing in ways to collect high-quality first-party data by creating tools and touchpoints that provide a value exchange to deliver personalised experiences and drive conversions. While further increasing the value of their data. 

The importance of personalisation

The playing field for retailers and their vendors has shifted thanks to evolving consumer behaviour. The pandemic has accelerated the rise of e-commerce spending (with 80 per cent of shoppers now doing over 50 per cent of their shopping online). With more people shopping online our expectations coming into 2022 are higher than ever.

Buyers expect personalisation  

A recent study by Epsilon found that consumers are 80 per cent more likely to purchase from a brand if it offers them a personalised experience. And the data doesn’t stop there; according to Google and the Boston Consulting Group, brands that used first-party data in their digital advertising saw up to a 2.9x revenue uplift and a 1.5x increase in cost savings

It’s no secret that offering personalised shopping experiences to customers results in higher conversion rates. So, what if retailers could share that value with their vendors while also increasing their earning potential? 

Retail media makes data more valuable  

Retail media is the monetisation and offering of a retailer’s owned assets (think website, app or email) to their vendors. Allowing vendors to market to their joint customers at or near the point of purchase.

In the US, 75 per cent of vendors feel they’re spending too much of their budgets within ‘walled gardens’ and are looking for alternative solutions (this number rises to 89 per cent in the EU). And while we don’t have the direct data for APAC, we know that digital advertising spending has skyrocketed and will continue to do so in 2022. 

With the demand for advertising space being higher than ever, a retailers’ owned channels and first-party data have never been more valuable.

By retailers turning their owned assets into a revenue-driving machine, they’ll be able to collaborate effectively with their vendor partners and grow a media publishing ecosystem. Vendors will ​​have access to retailers extensive first-party data while adhering to privacy measures. And customers will ultimately get a more personalised buying experience. A win-win-win for all parties.

Here at The Pistol, we’ve been helping our clients maximise the value of their first-party data so they can take advantage of the opportunities retail media has to offer.

We’ve identified gaps in business’s ability to achieve personalisation and designed TP.Collab, tech that facilitates the use of retailer-owned assets to deliver a mutual value exchange between vendors and their retail or distribution partners (ultimately improving conversions for all).

First-party data is the holy grail when it comes to navigating the new privacy-aware consumer environment. We’re setting the standard for connecting suppliers and retailers’ data sets to enrich every touchpoint that consumers have with the product they are looking to buy and where they are going to buy it.

Ready to maximise the potential of your first-party, get in touch with us to see how TP can move the needle for your business. Or find out more about TP.Collab on our website.