Data collaboration. You may be familiar with the term. But do you know what data collaboration is and how critical it can be in growing your business – and your reputation as a marketing leader?
Even with an infinite amount of data in today’s digital world, companies are still in need of much more first-party data to truly understand their customers. But to get that information, they need to look outside their four walls and collaborate with other companies who have first-party data that can build the most complete representation of a person or a household. With this robust view, companies can unlock new insights that open a world of possibilities.
Data collaboration is about imagining what new information can transform your business, then working with external or internal partners to get that data.
Turning challenges into opportunity with data collaboration
In today’s economy, there have never been more challenges – or opportunities – for brands and marketers to effectively reach and connect with customers. Complex privacy regulations, designed to protect consumers, are tricky to keep up with. Consumer behavior continues to evolve across mediums and generations. Plus, there’s an overwhelming amount of valuable customer data to analyze. Add to that the unexpected nature of traditional identifiers and signal loss.
Data collaboration can turn those challenges into opportunities that elevate the impact of your marketing organization. Bringing together different first-party data sets reveals customer behaviors and preferences that inspire new, delightful customer experiences that engender brand loyalty. Take, for instance, how Pinterest is helping brands reach the right pinners – teachers, chefs, crafters, influencers – who are looking for products and services. Through the power of data collaboration, Pinterest is providing targeted audience activation for a personalized customer experience while keeping customer privacy in mind.
As marketing leaders, we can truly transform the business. We can help our organizations develop first-party data strategies and creative partnerships that generate entirely new products, services, and revenue streams. Data collaboration is a perfect way for forward-thinking CMOs to extend their impact on the business and their influence with the rest of the C-suite.
The shifting role of the CMO in the larger business strategy
The role of CMO has undergone a significant transformation, and today’s marketing leaders are responsible for much more than marketing and advertising. They are now the bedrock of holistic business strategy, guiding companies toward growth and scalability.
Successful CMOs understand that collaboration with other executives means making decisions that will drive revenue, increase brand awareness, and ultimately grow the business. Seventy-seven percent of global CMOs say the pressure to prove ROI is always top of mind. Yet, a survey by Growth From Knowledge found only 7% of senior marketers think they have a holistic handle on ROI, brand purpose, and investment in brand-building. Building knowledge – and confidence – must be a priority.
CMOs today need to be tech- and data-savvy. They have to understand how technology and data analysis can create a demand-gen waterfall that leads to revenue growth. Data collaboration bridges that gap between marketing and IT and other areas of the business by breaking down data silos and fostering cross-functional alignment and agility for decision making.
By providing all teams with access to valuable data, CMOs can empower other leaders to align their efforts and work in unison toward shared company objectives. This approach enhances the organization’s agility and responsiveness, and strengthens its ability to adapt to changing market conditions.
Data collaboration drives enduring brand and business value
Understanding and leveraging customer insights creates opportunities to grow brand and business value by delivering more personalized experiences, fueling new innovations, and strengthening brand loyalty.
Recent research conducted by McKinsey found companies that experience rapid growth generate 40% more revenue through personalized experiences compared to their slower-growing counterparts. Personalization and tailored experiences can help customers discover things they may have never found otherwise, like the perfect solution for a nagging problem, the ideal gift for a loved one, or a unique family vacation idea.
Additionally, data collaboration reduces customer acquisition costs. Traditional methods of building first-party data require significant investments in resources, tools, and technology, But with an innovative data collaboration strategy, companies can discover countless opportunities to expand customer reach, measure performance, cut costs, and power data-driven decisions.
Enhancing measurement and breaking down silos with data collaboration
A staggering 90% of CPG leaders acknowledge obstacles like data collection, activation, and scaling as key barriers to achieving their marketing and business goals. Data collaboration can help there too. CMOs can leverage the right data tools to solve challenges across the enterprise.
Consider the case of a global food and beverage company that struggles with data collection. Using data collaboration, a consistent identity framework can be created that spans multiple touchpoints throughout complex consumer journeys. That gives the company a reliable source of up-to-date, online and offline information about their customers, across channels and devices. They’ve broken down data silos and have a clearer understanding of the customer. They can deliver more effective experiences, while improving technology investments across all applications and business partners.
Take a global entertainment company with a huge portfolio of brands and properties. By creating a consistent identity framework that enables internal data collaboration, they have a reliable source of information about their customers, across channels, and devices. They can break down data silos and have a clearer understanding of their customer. They can deliver more personalized experiences and find new opportunities for innovation, while getting more value out of their technology investments.
Or how about a fashion brand that wants to improve its marketing efforts to boost revenue. By partnering with retailers, brands sold in store gain access to the retailer’s first-party customer data to better understand the customer purchasing journey. The brand can then increase the effectiveness of its marketing and build stronger customer loyalty and engagement. With data collaboration, they can now identify customers with higher lifetime value and expand their reach by connecting with customers on any device, platform, or login the customer uses. Then, by collaborating with partners, the retailer can cross-promote products and access new customer segments across multiple platforms.
Building business value and professional influence
Through data collaboration, marketing leaders can become the revenue-driving force that enterprise organizations need today. By partnering with other C-Suite leaders, CMOs can develop a marketing strategy that activates the company’s most valuable asset – its data. In doing so, they build stronger customer relationships and better business results, which strengthens their position and influence as a business leader.
This blog was originally published on Jessica’s Shapiro’s LinkedIn. Follow her for more CMO insights.
