Outside the Bubble: What Data to Leverage for Deeper Consumer Understanding
When it comes to understanding consumer behaviour, we've long relied on traditional methods like customer surveys, web analytics, and first-party data. But let's face it—they have their limitations. Take first-party data, for instance. While it's great for understanding how customers interact with a specific brand, it doesn't quite capture their behaviours and preferences beyond that bubble.
Third-party purchase transaction data comes into play here. This treasure trove goes beyond just showing what customers buy from a particular retailer or brand. It delves into their spending habits across various sectors and categories, painting a much richer picture of consumer behaviour.
Picture this: you're analysing third-party transaction data and uncover a fascinating trend. A particular consumer segment is tightening their belts, shifting their spending towards essentials like utilities and healthcare. As a result, their splurges on non-essentials like luxury items and entertainment have taken a back seat. Understanding this economic shift allows brands to fine-tune their marketing strategies, ensuring they're in tune with consumers' evolving needs and financial realities.
You can tap into third-party transaction data to uncover hidden consumer segments.
Let's imagine an example of an online fitness apparel brand and a meal delivery service. By analysing third-party transaction data, the apparel brand finds a substantial overlap between their customers and subscribers of the meal delivery service. This suggests that fitness enthusiasts also value meal convenience.
Capitalising on this insight, both brands collaborate on a marketing campaign. The meal delivery service offers discounts to the apparel brand's customers, while the apparel brand provides promo codes for workout gear to the meal service subscribers.
You can access third-party transaction data through various means, including partnerships with third-party data providers, collaborations with financial institutions, or by leveraging data from loyalty programs and customer purchase histories. Let's learn more:
Data Aggregation Platforms: Use platforms that collect and analyse transaction data from various sources, providing insights into consumer spending behavior.
Partnerships with Financial Institutions: Collaborate with banks or fintech firms to access anonymised transaction data, revealing spending patterns across different categories.
Third-Party Data Providers: You can work with specialised providers to analyse aggregated transaction data and identify trends impacting consumer behavior.
Market Research Studies: Participate in studies to gather transaction data and insights into economic trends and consumer preferences.
Collaborations with Retailers or E-commerce Platforms: Exchange transaction data with partners to identify overlapping customer segments and opportunities for joint marketing initiatives.
Customer Loyalty Programs: You can leverage transaction data from loyalty programs to tailor offerings and marketing strategies to customer preferences.