For years, companies have paid platforms such as Facebook, Google, or Amazon for data that improves ad targeting. Why? Because they lack the first-party data for targeted, direct engagement.
Yet, in the digital-first world, brands that know customers the best – and harness this knowledge to improve CX – are likely to prevail.
In such a reality, third-party data loses its relevance. Moreover, companies need an entire data layer to make sense of all the customer data points they monitor.
Twilio is aiming to push back against this unfortunate truth. The vendor is helping companies to track every click, scroll, eCommerce purchase, service query, and more, enabling its clients to create audiences from these specific traits.
Going into more detail during his session at CDP Week 2022, Jeff Lawson, CEO of Twilio, stated:
Whether you are launching a localised email campaign that you want customers to actually read and care about, or whether you are serving ads based on this first-party data, you can create a better lookalike audience. The enhanced relevance to the customer is what drives better conversion.
An excellent example of how a brand has exploited first-party data to enhance the relevance of its customer engagement initiatives is Domino’s Pizza.
The restaurant chain’s Mexico division was its first to create hyper-personalized audiences to increase return on ad-spend revenue and secure more purchases across all its eCommerce channels.
To do so, Domino’s turned to Twilio Segment and secured a 23 percent incremental increase in the Facebook conversions for customer acquisition.
Such initiatives will likely grow more popular as data privacy remains central to customer trust. Adding to this trend is the downfall of third-party cookies, already blocked in Firefox and Safari. Google Chrome will also stop using them before the end of 2023.
Recent Twilio research suggests that over half of companies are not ready for this change. Meanwhile, over 80 percent of businesses are still relying on third-party cookies.
