Consumers expect highly-personalized experiences when interacting with brands today—particularly if they’ve volunteered their time, money and personal information in exchange for them. But it’s what you do with that data that counts.

For first-party data-rich companies like DoorDash and e.l.f. Beauty, the key to leveraging consumer data to create exceptional brand experiences—while also adhering to privacy stipulations—is honoring that “implicit value exchange,” according to DoorDash CMO Kofi Amoo-Gottfried, who spoke on a panel at the POSSIBLE marketing conference in Miami last month.

The two companies have mined scores of data sets to fuel innovative marketing programs as creative solutions for their customers. For instance, the data insights team at DoorDash noticed that some consumers were ordering twice on the platform from different stores within a short period of time. So to solve the problem—and ultimately enhance the user experience—the brand created a new service called DoubleDash, which allows users to purchase items from nearby stores without the added service or delivery fee that incurs from multiple orders.

The advantage of having access to a trove of first-party data is that it’s actionable, which inspires marketers and their cross-functional teams to make decisions as close to real-time as possible. “We have something like 25 million monthly active users on our platform, so we have an enormous amount of first-party data,” Amoo-Gottfried said. “It’s coming right from the platform; it’s coming from behaviors.”

Another data point DoorDash is monitoring is communications to drivers, whom they refer to as “Dashers,” in real-time. “If a Dasher goes to a store and a store’s closed, we actually get a note,” Amoo-Gottfried explained. “But then how do we get the feedback from the Dasher that the store is closed? And in real-time, and take that store down and say, ‘this store’s closed, here are some other options that you have.’ We’re constantly learning as we go, from everything [in the app].”

First-Party Data Magic

Similarly, e.l.f. Beauty draws insights from its passionate community of loyalty members. “That’s where the first-party data magic really comes into play,” according to Ekta Chopra, the brand’s Chief Digital Officer, who spoke on the conference panel alongside the DoorDash CMO. “Our app has 1.2 million downloads, and 95 percent of our loyalty members love to shop in the app. So we learn how they like to shop, and which channel… As a brand that is in every single retailer, we don’t care where the consumer shops. But we do want to have that relationship with the consumer. The first-party data really allows us to do that.”

Honoring that relationship by providing an enhanced experience while adhering to data privacy regulations is critical, however. “The most fundamental thing is the implicit value exchange,” Amoo-Gottfried said. “How do we help use this data to actually create a better experience, and how do we ensure there are a ton of guardrails?” That translates to actively deciding not to use certain subsets of data if they don’t serve that purpose, he said. “There’s entire categories of things that we won’t target on, even though we might be aware of what they are, because we think it’s problematic to target on that identity factor… Get the things that you actually need and don’t touch the other stuff. We try to figure out which pieces are most predictive.”

Chopra agreed that the relationship between brand and consumer starts with trust, and that’s something she takes very seriously. “As marketing leaders, you have to pay attention to that, because one data leak is something that will really hurt your reputation, and especially as a public company, it becomes a bigger responsibility.”

Data Privacy Hacks

For marketers who are laser-focused on data privacy and compliance, Chopra has a few tips. First, she recommends working with your legal team to ensure there are data privacy considerations when crafting your data processing agreements (DPAs) with vendors. “Depending on how big you are and what kind of data you’re storing, it can get really complex,” she said. “So having that strong partnership with your legal team is important.”

Second, your cyber security policy should include a data privacy component to it and be right-sized appropriately—depending on the size of your customer base—so that you have adequate insurance in case any data leaks occur.

Third, consider the sensitivity of the data consumers are sharing with you and practice good data hygiene accordingly. “They’re giving you certain information that’s really private in some cases, depending on if you’re in the medical field—and beauty there’s some elements, too,” Chopra said. “You should know where that data is transferring in your ecosystem, whether it’s this system or that system. There are tools, of course, that can do that. But from a good data hygiene perspective, understanding that is super important.”

While companies seek to mine more and more consumer data, great responsibility comes with that exercise. “As you become bigger, of course you want more data… but you should also know that it adds a layer of complexity with private information,” Chopra said. Moreover, at a certain point you may be asked to delete it—and you need to be ready for that and have the tools in place to prove it, she said. “So when people do come in and do an audit, you can show it to them.”

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Data clean rooms have risen in importance amid the post-cookie digital marketing landscape, as a means for marketers to extract value from user data while protecting consumer privacy preferences. But for marketers new to the concept, evaluating the variety of options that exist in the space today could feel a bit overwhelming.

A column in AdExchanger from Alliant Chief Innovation Officer Donna Hamilton provides a useful introduction to the category and shines a spotlight on what newbies should know, from setting ground rules with data governance and compliance teams to employing a flexible strategy that leverages collaboration with peers rather than building infrastructure from scratch. Read more in AdExchanger.

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The run-up to the FIFA World Cup, which kicks off in late November, has already inspired global sponsorship programs and soccer-themed marketing initiatives. Take Budweiser’s ad campaign, which features international players walking onto the field, a marching band, rabid fans and, naturally, bottles of Bud. But for this tourney, the AB InBev brand has added a QR code to the spot to entice consumers to purchase a limited-edition beer on its website. Here’s how Budweiser’s direct-to-consumer play is collecting first-party data while also driving sales, according to a piece in AdExchanger.

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P&G’s Tide brand has a laundromat franchise business that’s been around for more than a decade, with a total of 189 today. From a marketing perspective, the customer feedback, new product testing and valuable data access—particularly within eight laundromats that are owned by the brand rather than franchised—give the CPG company a data edge over its competitors. Read how Tide is getting creative with marketing tactics, according to reporting in AdExchanger, within a category many consider to be unsexy.

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Monitoring evolving privacy laws pertaining to digital targeting practices is on many marketers’ to-do lists. But while these new state rules may seem daunting to keep up with (Utah and Connecticut being the latest to weigh in), there are in fact some common features to the forthcoming laws. Here’s how marketers can prepare for future statutes without starting the compliance process from scratch, according to a piece in AdExchanger.

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When it comes to targeting online users with personalized messages, brands with access to first-party data sets have an advantage over competitors—and will continue to maintain an edge as privacy rules governing digital media become more restrictive. Dairy and food manufacturer Land O’Lakes has enjoyed some success with its data collection strategy of late by leveraging a CDP, mining its websites and newsletters for valuable data and incorporating timing into its targeting strategy. Here’s how the company is converting customers with smarter data management, according to an article in AdExchanger.

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The Weather Company has access to a trove of first-party data, which gives it a distinct targeting advantage in a post-cookie world. But it’s also investing in AI technology—through IBM Watson Advertising—to create quality content; focusing on a subscription model; and deprioritizing revenue gained from short-term advertising within its apps in order to create a richer experience for consumers. Here’s a look at the strategy behind the brand’s recent decision to reduce its in-app ad footprint by 42 percent, according to a piece in AdExchanger, plus how the company is using AI to improve its subscription offering.

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The phrase “data clean room” has achieved buzzword status within the digital marketing industry community of late, particularly in the face of privacy-focused initiatives from Google, Apple and others. But what does leveraging a data clean room actually entail? CM sister pub AdMonsters takes a look at what the solution accomplishes, specific use cases, types of data clean rooms and how companies can get started with implementation.

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In the data and adtech spaces, the term “zero-party data” has created a sufficient amount of buzz this past year. AdExchanger takes a look at the customer relationship it aspires to develop, how it differs from first-party data, and the benefits of using zero-party data within a privacy-focused marketplace.

Coined by Nielsen in 2020, the term zero-party data refers to data that customers provide to brands voluntarily and intentionally. Examples include survey data or indicating purchase intent clearly and directly, when a customer willingly tells a brand about their preferences. This kind of data sharing is completely opt-in, and some brands are creating gamified experiences to encourage and make consumers’ sharing of their preferences more enjoyable.

First-party data also involves sharing consumer data willingly, but the focus is on the brand collecting data rather than the customer volunteering it. Brands use first-party data to track a person’s online behavior; it allows them to monitor that activity. While this kind of data is helpful for brands, zero-party is ideal within a privacy-focused marketplace, since the process is lawful but also paints a more accurate picture of the consumer.

For more on zero-party data and its benefits, read on in AdExhanger.

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At the start of the new year, marketers must comply with the California Privacy Rights Act of 2020 (CPRA) in order to continue to collect valuable consumer data for targeting purposes. Here are six ways to prepare for the impact that CPRA will potentially have upon your business, according to a piece in AdExchanger.

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