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First-Party Data Is Retail’s Next Growth Engine

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First-Party Data Is Retail’s Next Growth Engine

Boston Consulting Group,

5 min read
3 take-aways
Audio & text

What's inside?

Many retailers have access to a wealth of first-party data, yet fail to capitalize on it. Harness the potential of your first-party data, creating new revenue streams.

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Editorial Rating

6

Qualities

  • Overview
  • Background
  • For Beginners

Recommendation

Due to consumer privacy concerns, collecting consumer data through the traditional use of “cookies” is becoming an obsolete practice, prompting digital marketers to search for new ways to access first-party data. Most retailers “are sitting on a fortune of data,” but are failing to capitalize on this resource. Learn how to transform your customer data into new revenue streams by switching to a first-party data business model. Dramatically improve the value of your data through state-of-the-art loyalty programs, AI-enabled personalization, retail media opportunities, and monetized data insights and analytics.

Summary

Drive engagement and boost data quality with a state-of-the-art loyalty program.

Many retailers have access to a wealth of personal data, yet fail to leverage its full potential. Missed opportunities result when retailers don’t collect first-party data in a structured way. You can begin harnessing the potential of this data by adopting a first-party data business model. The first step involves creating loyalty programs with AI-enabled personalization or dramatically updating existing programs. Loyalty programs should engage consumers seamlessly across channels, at all points of their customer journey, leveraging tactics such as gamified challenges and surprise offers. Boston Consulting Group research shows that grocery retailers will likely see revenues and profits increase between 3% and 5% when they set up state-of-the-art loyalty programs to collect first-party data.

Kick-start or update your loyalty program, maximizing the potential of first-party data, with the following steps: 

  1. Choose your partner network (or go at it alone) – Which potential partners have the right brand fit and...

About the Authors

Christina Mühlenbein, Finn Ruthenberg and Julia Hohmann-Altmeier are professionals with the Boston Consulting Group.

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