Making sense of consumer data

MAKING SENSE OF
CONSUMER DATA
A Guide to Responsible Data Collection and Application

MAKING SENSE OF CONSUMER DATA
Worldwide data is growing at 40% per year.
Over the past several years, consumers have shared more
personal data across a wider breadth of channels and
devices than ever before. Surrounded by terabytes of
readily available data about their most valuable current
and potential customers, brands have made a mad dash to
collect as much of this “big data” as possible. Businesses
are storing everything from consumers’ locations to music
preferences in the hopes that they will enable more
educated, data-driven decisions.
However, while 99% of businesses consider data and
analytics to be important to their organizations, 85% of
executives are struggling to accurately analyze and
interpret their existing data (KPMG). This is because many
businesses are simply using the wrong data. 54% of
professionals cite the biggest barrier to implementing a
successful data and analytics strategy is the inability to
identify what data to collect (KPMG).
Many marketers are stuck focusing on event and page-level data in an effort to garner
insights around consumers’ preferences and purchase behaviors. What they don’t
realize is that these insights are useless without understanding who these customers
are and what is driving their behaviors. Marketers must shift gears and implement an
identity-centric customer strategy that enables a more purpose-driven understanding
of consumers on an individual level.
Here are 3 keys to gaining an actionable view of consumer identity that facilitates
data-driven decision making, provides measurable results and drives unique KPIs.
• Leverage 1st
party data
• Break down data silos
• Tie data to existing KPIs
“Big data really is about
having insights and
making an impact on
your business. If you
aren’t taking advantage
of the data you’re
collecting, then you just
have a pile of data, you
don’t have big data.”
- Jay Parikh, VP of
Infrastructure
Engineering, Facebook

3 Reasons to Use the Right Data
• Companies that centralize and operationalize
customer intelligence have 3.5X higher
retention rates (Totango)
• Companies that are more data-driven are 5%
more productive
• Data-driven businesses are 6% more profitable
than other companies (HBR)
Leverage 1st
Party Data
Many brands are still relying solely on third-party data to understand and reach
customers, but this strategy was hardly built for the era of the connected consumer.
Data that has been aggregated by a variety of disparate sources fails to create a
holistic view of consumer identity. As users connect with brands across a variety of
channels and devices, third-party techniques like cookie retargeting are becoming
obsolete as they fail to unify individual user identity across touch points. Not only do
65% of US consumers delete their cookies (MediaPost), but over 20% visit websites
from 4 different devices each week (Experian).
Brands looking to gain a more current, accurate and identity-centric view of
consumers are placing increasing emphasis on collecting and analyzing their own
first-party data. To accomplish this, brands are implementing social login, which
allows consumers to register and login using their existing social media accounts. By
doing this, brands gain permission-based access to users’ social data, which reveals
such valuable insights as their interests, media preferences, relationships, and more.

These rich social insights give brands a comprehensive view of consumer identity and
insight into the preferences driving consumer behaviors. By authenticating consumer
identity in a permission-based manner, brands are able to create more relevant user
experiences that foster authentic consumer relationships, influence desired actions
and build brand loyalty.
Login Data vs. 3rd
Party Data
Provided at user registration and
collected as users interact with your
site or app.
Data Sources
Collected by multiple, often unknown
and irrelevant data providers.
Completely transparent and
permission based; users opt-in by
registering for your website or app.
Collection
Techniques
Users are often unknowingly “cookied”
by certain sites and tracked across the
Internet.
Brand owns all data and is solely
responsible for security and
compliance.
Privacy/Security
Brand maintains no control over how
user data is being used.
All user activity is attributed to a
single identity, even across channels,
and records are updated with users’
real-time social data and on-site
actions.
Accuracy
Data is often stale and inaccurate due
to different consumers using the same
device and the inability to track user
activity across channels.
Break Down Data Silos
Consumer activity doesn’t happen in a vacuum. Yet almost 65% of marketers agree
that silos within their marketing departments prevent them from having a holistic
view of campaigns across channels (Teradata), and research shows that the ability to
measure marketing ROI is declining as channels continuously diversify (MediaPost).
To truly understand consumer identity and influence desired behaviors, brands must
have a complete picture of the triggers and touch points driving consumer activity.
This requires an aggregate, 360 degree view of consumer connectivity across
channels, devices and departments, including mobile, email, marketing, social media,
sales, apps and websites, customer service and more.

As we discussed, tying consumer activity to a single identity via 1st party social login
data is the first ingredient to gaining actionable consumer insights. The next step is
implementing a database infrastructure that eliminates data silos by storing and
organizing customer data in a centralized location. Selecting a database that can
automatically reconcile both schema (name, email, etc.) and schemaless (unstructured
data like social connections, interests, etc.) data is key in gaining a complete and
immediately actionable view of consumer identity.
Did You Know…
Businesses cite the inability to automate structured
and unstructured data quickly and effectively
among their biggest challenges, with 60% noting
that big data projects typically take at least 18
months to complete (Kapow Software).
Tie Data to Existing KPIs
Despite the availability of 1st party data
and identity management solutions,
many brands still struggle to make data-
driven decisions. In fact, only 6% of B2B
marketers say they frequently calculate
ROI (Demand Gen Report), while 25% of
B2C marketers list measuring ROI as
their greatest challenge
(Webmarketing123).

Without the ability to tie
aggregate 1st party identity
data to key performance
indicators, businesses will be
unable to effectively measure
ROI and make data-driven
decisions. Brands must
leverage a flexible database
that allows them to pour
consumer identity and
behavior data directly into
existing third-party analytics
platforms to measure its
impact on traditional KPIs.
Marketers and IT need to work together to ensure that these insights are captured and
displayed in an accessible manner that empowers those on the frontlines of the
business to take action quickly. Providing a seamless view of the ways consumer identity
and behavior both directly and indirectly impact business goals helps isolate the factors
driving or disrupting performance, resulting in a smarter, data-driven organization.
Disorderly Data:
• 26% of marketers don’t know which channel
delivers the best leads (1to1 Media)
• Only 18% routinely have a single view of
customers (Teradata)
• 33% are unsure as to which channel generates
the most revenue (1to1Media)

The connected consumer revolution calls for businesses to reevaluate their data
strategies. Marketers who discover that they’re using the wrong data can take the
steps outlined in this white paper to effectively transition to an identity-focused and
data-driven strategy that unlocks the value of their audiences.
Sources
- http://blogs.hbr.org/2014/02/cmos-and-cios-need-to-get-along-to-make-big-data-work/
- http://www.prnewswire.com/news-releases/kpmg-capital-study-reveals-96-percent-of-businesses-say-they-are-not-
managing-data-effectively-240759191. html
- http://blog.totango.com/2012/06/suffering-from-siloed-customer-data-time-to-get-that-business-in-order/
- http://www.mediapost.com/publications/article/191809/study-44of-adults-opt-out-of-targeted-ads-66-d.html
- http://www.experian.com/marketing-services/2013-digital-marketer-report.html
- http://www.teradata.com/News-Releases/2013/Data-Driven-Marketing-Delivers-Enterprise-Wide-Value-Global-Teradata-
Survey-Says/
- http://www.mediapost.com/publications/article/218791/
- http://kapowsoftware.com/company/news/press-releases/IDG-RESEARCH-SURVEY-EXPOSES-PENT-UP-DEMAND-FOR-
CONSUMABLE-BIG-DATA-TO-MAKE-IT-RAPIDLY-ACTIONABLE
- http://www.demandgenreport.com/industry-topics/demanding-views/2353-3-reasons-marketers-dont-measure-
roi.html#.UzDwwK1dVGF
- http://go.webmarketing123.com/2014DMRInfographicLP-VerB-HP.html
- https://www.1to1media.com/view.aspx?docid=34663
About Gigya
Gigya provides clients with the rich data, intelligence, and tools needed to reach
consumers with the right messages, on the right platforms at the right time. Gigya
drives user acquisition and engagement for 700 enterprises and reaches 1.5 billion
unique users per month, ensuring that today’s businesses stay relevant in the age of
the connected consumer.
For more resources on accessing and managing consumer data, visit Gigya.com. To
get started right away, you can speak with a product expert by calling: 888-920-1702

Making sense of consumer data

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