Creating complete, people-focused customer profiles requires the ability to connect offline customer data with online customer data. However, bridging that connection has been historically difficult – or impossible – if a customer was not directly logged in to the retail website. However, thanks to digital data onboarding, retailers are discovering a new and cost-effective way to solve that puzzle.
Offline vs Online Data
Offline data is gathered through in-store purchases, loyalty cards, store-brand consumer credit cards and more. Online data captures the behaviors and interactions of customers across the internet. Both are important for creating customer profiles, but neither paints a complete picture on their own.
Historically, the only way to bridge the two was through an online account or a loyalty program that tracked both online and offline behaviors. However, this is an imperfect science. It doesn’t allow a retailer to identify a customer unless they identify themselves by logging in to the website or presenting a card in-store. If customers make a purchase online as a guest or browse without logging in, critical behavioral data is unaccounted for.
The Rise of Digital Data Onboarding
Enter data onboarding. Thanks to the cookies that track online users, retailers can now see a customer’s behaviors and preferences even if that customer is not logged in to the store website. Data onboarding connects offline customer records with online users through identifiers and matching those identifiers to their cookies. Through data onboarding it is possible to get an ad in front of a customer when they are online, even if they haven’t visited your website in a while.
For example, a clothing store has a database of loyalty card customer data that they want to leverage to target shoppers online who purchased a specific line of outerwear. Through digital data onboarding, a third party matches those customers to a cookie and sends targeted ads online – even if the customer is not on the store website.
Rather than just direct mail or blasting through email, digital data onboarding allows retailers to reach customers in new, effective and cost-efficient ways.
Lift361 recently worked with a customer on such a project. A 90-day test was run that targeted 200,000 customers. Over the course of the test, targeted customers spent $3 more on average. That equates to just $1 per month, but spread over 200,000 people, the retailer saw a lift of approximately $600,000 in incremental spend over just three months—yielding significant, measurable ROI.
Digital media is now showing a significant lift in customer behavior and it’s only going to get stronger. Early entrants are seeing significant results and will be in the best shape to evolve with technology as more retailers begin to discover the strategy. Digital data onboarding also allows for greater personalization. It provides a much more complete view of customers and prospective customers, facilitating audience targeting and allowing for personalized campaigns to maximize ROI. Digital onboarding allows retailers to know more about each individual customer, create more effective and accurate segmentation and target communication on a deeper level.
Contact Lift361 today to learn more about how digital data onboarding works.