MarTech Podcast ™ // Marketing + Technology = Business Growth
Episode: Transitioning To A 1st-Party Data Plan
Release Date: December 9, 2024
Host: Juan Mendoza
Guest: Chris Sell, Co-Founder and Chief Product Officer at Growth Loop

Introduction to the Episode

In this special episode of the MarTech Podcast™, guest host Juan Mendoza, author of the Martech Weekly Newsletter, engages with Chris Sell, Co-Founder and Chief Product Officer at Growth Loop. The episode delves into the critical transition from third-party to first-party data strategies in the wake of evolving digital privacy standards and the deprecation of third-party cookies.

The Impact of Third-Party Cookie Deprecation

Juan opens the discussion by highlighting the industry's turbulence following Google's announcement to phase out third-party cookies. Initially slated for a full deprecation, Google pivoted to offering users the choice to opt out of third-party cookies, leading to confusion and uncertainty within the marketing and advertising sectors. This shift has accelerated the urgency for businesses to adopt first-party data strategies.

Chris Sell emphasizes the seismic shift in the industry:

"The industry has completely tipped over... I think AI has helped because people are realizing AI is pretty worthless if you don't have your data assets in order."
[04:56]

Defining a First-Party Data Strategy

Chris elaborates on what constitutes a robust first-party data strategy, underscoring the necessity for businesses to proactively control their data assets. He critiques the traditional approach of aiming for a comprehensive Customer 360 view, which often leads to costly and impractical implementations without clear business use cases.

"A real first-party data strategy... it's a perfect example... Start with the data that matters the most in the business."
[07:27]

Instead, Chris advocates for a more pragmatic approach:

1. Data Discovery: Identify all customer interactions across various touchpoints such as websites, applications, and point-of-sale systems.
2. Prioritization: Focus on the most valuable data assets that can drive immediate business outcomes.
3. Incremental Implementation: Develop and activate data layers progressively, allowing for flexibility and alignment with marketing needs.

"It's not saying don't understand your full data catalog. Definitely do that and do that research exercise, but layer it, expose it to marketing, see if it's useful for their use cases and then proceed."
[10:58]

The Concept of Customer 360

The conversation shifts to the feasibility and practicality of achieving a single view of the customer. Chris likens the traditional Customer 360 approach to building a high-performance vehicle that may not meet immediate needs, advocating instead for incremental data integration.

"First party data strategy is the same to me... you need to start with a skateboard. It's like, hey, ticketing data or my purchase data is the most important."
[08:57]

Building a Business Case for First-Party Data Strategy

Juan and Chris discuss the challenges of securing executive buy-in for first-party data initiatives. Chris advises aligning data strategies with specific business problems to demonstrate tangible value, such as reducing customer churn or increasing repeat purchase rates.

"Does the company have a churn problem?... How does the first party data strategy drive that?"
[11:38]

He provides a strategic approach:

1. Identify Key Business Metrics: Understand the metrics that executives prioritize, such as revenue growth or customer retention.
2. Link Data Strategy to Metrics: Clearly articulate how the first-party data strategy will positively impact these metrics.
3. Demonstrate Quick Wins: Start with small, impactful projects that can showcase immediate benefits and justify further investment.

"If you align your first party data strategy to the metrics to drive those metrics, that is how you get promoted."
[15:00]

Driving Transformation: The Role of Leaders

Effective transformation requires a blend of technical expertise, strategic vision, and political savvy. Chris highlights the importance of leaders who can navigate these multifaceted roles to drive successful first-party data initiatives.

"It's all three... You have to play the politician, sometimes you have to play the data engineer and sometimes you have to play the marketing hat with the strategy."
[17:16]

He emphasizes starting with manageable projects and using platforms like Growth Loop to activate data efficiently, thereby building trust and demonstrating value to executives.

"They just build the layers and they report up each time. That's the folks that win and get promoted that I've seen."
[17:13]

Conclusion and Key Takeaways

The episode underscores the imperative for businesses to shift towards first-party data strategies in an increasingly privacy-conscious digital landscape. Key takeaways include:

• Proactive Data Management: Control your data assets to ensure long-term sustainability and leverage AI effectively.
• Strategic Alignment: Align data initiatives with core business metrics to secure executive support and drive meaningful outcomes.
• Incremental Implementation: Adopt a phased approach to data integration, prioritizing high-impact areas to demonstrate value and gain momentum.
• Leadership Skills: Successfully navigating this transition requires a combination of technical knowledge, strategic planning, and political maneuvering.

Chris Sell concludes with a compelling vision for marketers and data leaders to champion data-driven transformations that directly impact business performance, ensuring their initiatives are both valuable and recognized within their organizations.

Notable Quotes:

• Chris Sell on Industry Shift:

  "The industry has completely tipped over... I think AI has helped because people are realizing AI is pretty worthless if you don't have your data assets in order."
  [04:56]

• Chris Sell on Data Strategy Pragmatism:

  "First party data strategy is the same to me is... start with a skateboard. It's like, hey, ticketing data or my purchase data is the most important."
  [08:57]

• Chris Sell on Securing Executive Buy-In:

  "If you align your first party data strategy to the metrics to drive those metrics, that is how you get promoted."
  [15:00]

• Chris Sell on Leadership Roles:

  "It's all three... You have to play the politician, sometimes you have to play the data engineer and sometimes you have to play the marketing hat with the strategy."
  [17:16]

For more insights and episode summaries, visit martakpod.com. Connect with Chris Sell on Growth Loop's website or his LinkedIn profile linked in the show notes.