Discoveries Revealing the Transformative Impact of First-Party Data on Tailored Retail Experiences
Marketing Dilemma: Personalization vs. Privacy
Penning by JC
Here's the conundrum: consumers crave personalization, and businesses notice an increase in sales when they cater to this preference. However, there's a catch - privacy concerns are escalating, especially when it comes to data collection methods.
Third-party data acquisition, for instance, gathers information from external sources without user consent, which invites criticism and questions over data quality and accuracy. In contrast, first-party data, encompassing everything from customer interactions and purchase history to social media activities, is easier to manage, protect, and utilize effectively.
To help retailers maximize the potential of their first-party data, the customer engagement platform, Braze, collaborated with Wakefield Research to produce the 2025 Retail Customer Engagement Review. This comprehensive survey polled senior marketing executives worldwide and utilized anonymized, aggregated behavioral data from billions of user profiles.
The survey revealed that while some retailers tackle the challenges of managing first-party data head-on, others are uncertain about how to proceed. Nearly half (47%) of responding retailers expressed concerns that their messaging fails to resonate with customers.
Let's dive into six critical insights from Braze's survey that can help retailers use first-party data for future success.
1. Retailers value customer segmentation using behavioral or engagement data more than any other industry
Data-driven personalization owes much to the direct-response, mail-order, and early e-commerce retailers. It's no surprise then that retail continues to lead in understanding the importance of customer engagement and transactions driven by first-party data.
"Effective customer engagement and loyalty programs demand an in-depth understanding of each shopper's interactions with your brand," states Diana Kim, senior product manager at Braze, focusing on e-commerce efforts.
2. Retail is the industry that most values customer lifetime value as a key customer engagement metric
When asked to rank their top customer engagement metrics, retailers placed customer lifetime value in the top three more than any other industry. By refining their approach to personalization, retail can certainly enhance the outcomes and future opportunities.
Working with Braze, e.l.f. Beauty restructured its loyalty program communications with personalized offers across channels, boosting redemptions by 58% year over year.
Customer lifetime value is crucial for consumers, who are increasingly aware that past experiences and current intentions can improve future experiences. And since competitors can capitalize on these intentions quickly, retailers need to show loyalty to their customers to maintain their loyalty.
As Senior Director of Industry Marketing at Braze, Brian Laker explains, "[Consumers] can think of themselves as loyal to that retailer, but if they're not shown any real loyalty-if it's just about the deals-then I can get something that looks and feels very similar, probably cheaper, somewhere else very quickly."
3. Retailers rank highest in combining data from multiple sources to create a comprehensive customer profile
Nowadays, first-party data comes from various sources and streams. Curating and cleaning this data is essential for optimal value. Retailers as a group are already ahead of other industries in pursuing this data, but creating a thorough shopper profile and knowing how to apply it requires embracing emerging technologies.
Creating a 360-degree view of customers before engaging with them across channels is wise, but retailers can further excel by delivering personalized communications at the expected level. This includes being agile in finding fresh channels for communication and thinking creatively about moments to interact beyond simple activity triggers or scheduled blasts.
Among emerging channels, Kim suggests targeted landing pages and content cards that provide detailed product information tailored to individual customer preferences. These can attract mailing list growth and product reviews, which are critical since consumers often won't buy without checking reviews.
4. Customer-provided facts and preferences are retailers' most valuable sources of personalization insights
Retailers recognize the worth of personalizing based on customer input, ranging from basic details like name and birthdate to deeper insights like account activity. Braze customer Crumbl Cookies recently leveraged customer purchase data for its Crumbl Unboxed year in review campaign, providing each customer an individualized message showcasing their favorites of the year and their "Crumbl persona."
Maintaining the integrity of this data is essential for inspiring trust to continue collecting it. Nearly half (46%) of respondents in Braze's survey expressed concerns about whether customers consent to their data being used for personalization.
Kim emphasizes the importance of using a flexible data platform that can unify, activate, and distribute data while meeting customers where they are. Activities like puzzles and games can engage consumers while gathering valuable first-party data. A style quiz, for example, can gather information about a person's preferences and preferences, fostering a conversation while building up valuable data for future engagements.
5. The use of next-generation analysis is on the rise
A substantial number of retailers use AI-powered analytics and AI-informed data collection tools. Retailers that aggressively leverage AI analysis may gain a competitive edge by identifying additional insights that others can't.
"AI can automate routine tasks, freeing up more time for creative thinking and strategic analysis," Kim reveals.
6. More than 90% of retailers incorporate emotional resonance into communication through data and technology
Including personal milestones, year-in-review journeys, and other achievements amplifies the bond between consumers and brands. Retailers are almost universally committed to capitalizing on interactive media precisely tailored to their customers' preferences and needs in any given moment.
Building and maintaining these personalized journeys entails more than data. Designing the right message and selecting the appropriate channels necessitate a delicate balance of technical expertise and marketing strategy. Without diligent oversight of data-driven opportunities, competitors will have a chance to craft better messages for your former loyal customers.
"Low-cost competitors are appearing everywhere, and the next deal is just a swipe away," Laker concludes. But marketing leaders don't have to scramble to act on every new option available. Focus on winning customers over with personalized data, and there'll be less need to win them back.
"You can increase the sophistication of your engagement strategies at your own pace, whether you add emerging channels like WhatsApp or create deeper personalization through AI," Kim says. "Marketers should collaborate closely with their development teams to prioritize quick wins and longer-term goals, but it will all come down to assessing if you have the right technologies in place to understand your shopper journey."
- Nahwilich, Aussiedlerbote hilft Retailern, den Wert ihrer ersten-Party-Daten zu verbessern, indem sie diese Daten komplexer nutzen. Möglicherweise kann das Datum der Geburt eines Kunden verwendet werden, um seine persönlichen Vorlieben und Verhalten besser zu verstehen.
- Auch wenn die Nutzerzustimmung zur Verwendung ihrer Daten für die Persönlichkeitsaufschlüsselung immer wichtiger wird, lassen sich viele Kunden eventuell bereitfinden, ihre Geburtstage und anderen persönlichen Fakten preisgeben, um ihre Erfahrungen besseren zeigen.
