Over 70% of UK consumers trust that brands only use first-party data in personalisation, however only 5% of UK brands use entirely first-party data in their marketing strategies.
Customer engagement platform Twilio has claimed that first-party data is fundamental in driving marketing and business success.
The company’s fourth annual ‘State of Customer Engagement Report’ revealed that nine in ten (89%) companies agree that using first-party data in marketing improves customer experiences. However, over half of UK organisations (53%) rely on third-party data. A further 29% of firms use an even mix of third-party and first-party data, while 14% use mostly first-party data.
According to Twilio’s report – which surveyed 4,700 B2C leaders and 6,000 consumers – consumers are ‘running out of patience’ with cookies. Nearly one-third (32%) of UK consumers reject cookies on websites, and half (50%) of UK consumers have admitted to leaving a site in the past 12 months as opposed to accepting cookies.
The news follows Google’s postponement of its phaseout of third-party cookies in Chrome until 2024.
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Twilio also believes that organisations ‘have a long way to go to catch up’ to what consumers expect from brands. Only a third of UK brands (33%) cite shifting to first-party data as a critical priority, and just four in ten (38%) UK companies are prioritising first-party data as part of their personalisation strategy.
“Brands shouldn’t see the transition to first-party data as something that is being forced upon them,” Twilio customer engagement consultant, Sam Richardson, said. “First-party data comes directly from consumers, so it is more accurate and better reflects present demand.
“This means there’s a massive opportunity here for companies to deliver safe, secure, and highly personalised customer experiences and can have a positive impact on their bottom line. With huge potential gains for customer engagement and long-term loyalty, first-party data must be at the core of any successful marketing strategy.”
