Take a step outside: the value of third-party customer data

The 360-degree customer view is the Holy Grail of today’s retail industry. Consumers are increasingly demanding personalized, seamless experiences, and organizations need to act promptly to stay ahead of these expectations.

Customers are more willing than ever before to share their data if they are confident it will enhance their experience.

The foundation of the experience economy

Data – more specifically, the 360-degree customer view – is the foundation for developing the ideal customer experience and convenience engagement. Information allows organizations to personalize the shopping journey for each customer, which in turn creates positive experiences and builds loyalty.

Essentially, this all comes down to customer analytics. According to Forrester’s Brandon Purcell, “customer analytics uses customer data and analytic insight to design customer-focused programs that win, serve, and retain customers.”

The challenge, though, is collecting data from each and every touchpoint to create a relevant, detailed portrait of each customer. While this is a massive action item in itself, companies often need to look beyond their walls and outside of their own experiences to gain the nuanced insight required to effectively personalize each customer’s experience.

The risks and rewards of third-party data

In order to augment proprietary customer data, merchants will invest in third-party data to learn more about the customers and markets they serve. Spending habits, personality traits, and more combine to add depth, nuance, and context to data gathered from brand interactions.

People don’t only engage with one brand on their shopping journey, so solid third-party data can be a real game changer for personalization efforts. Furthermore, this information can even help businesses that are lagging the industry in establishing their own internal data strategies and capabilities.

At the same time, however, cost and data validity are important factors in whether third-party data is worth it. If you can’t trust the data, or if it costs more to acquire than you’ll get out of it, is it really worth it? These are important questions companies must answer.

Collaboration: the best way forward

The situation around the utility of third-party data is a complex puzzle. On one hand, it can add invaluable context to your personalization efforts. On the other, it can potentially introduce more problems than solutions.

As a leading innovator and solution provider for the industry, Capgemini has taken this challenge head on. Through the creation of the groundbreaking Capgemini Data and Analytics Consortium, we are bringing like-minded retailers spanning a wide array of verticals together to share their data, learn from other leaders, and add cutting-edge context to their customer experience.

I will explore this context in part two of this blog series.

Suzanne Larabie

Expert in Consumer Products, Retail

It brings me great pride to know that the work I do translates to tangible value for our clients. At Capgemini, I am currently leading the West Coast Portfolio in North America for our clients in the consumer products retail and distribution sectors. Having led projects in 21 countries, I have extensive knowledge of global program leadership and implementations. I have a long track record of performance growth in my career. I have been fortunate to receive multiple delivery excellence awards as a result.
Throughout my career, my efforts have contributed to a total of $950 million in sales. My career has taken me across the world – I have lived in Europe, Canada, and now the US. And, I have had working assignments in China, Hong Kong, Venezuela, and Mexico. It is truly a great time to be a part of this business world, and to learn from global partners who often provide unique insights and a different perspective. In my previous role at Capgemini, I designed and led the NA Accounts-as-a-Platform program – our strategic account platform centered on growth acceleration through client centricity for the NA market. I work to be recognized as an architect of transformation.
I aim to provide vision and innovation to our clients when leading business transformations in delivery and go-to-market frameworks. I have been with Capgemini since 2000, when I joined as a Delivery Engagement Director and Subject Matter Specialist in source-to-pay and supply-chain processes.
For almost two decades, I have committed to leading and motivating teams. I have worked on bringing our efforts together to increase profitability and drive client-centric solutions focused on business value. Whenever I have the opportunity, I look to identify strong performers with a high potential for growth. I am passionate about sharing my knowledge and providing new talent with the tools needed to succeed.