The importance of owning first party data for motorcycle brands
In a rapidly evolving digital landscape, the importance of owning first party data on customers and potential consumers has never been more critical, particularly for brands in the motorcycle industry. In this latest Motorcycle Marketing deep dive, we’ll look at how brand managers, product owners and marketers can take greater control of their customer data as third-party data reliance fades away and we enter a ‘cookieless’ future.
Let’s define first party data
First party data includes basic information on customers and potential future customers, such as name, email addresses, home address, phone numbers, purchasing data and additional demographic details. It can also include information on browsing behavior, content consumption, location, device, and the time of day specific actions are taken by a user or consumer.
It is primarily data that businesses collect directly from their customers and prospects, or data purchased or acquired (hopefully legally) via another source. First party data is therefore highly valuable in terms of its relevance to marketing and selling directly and efficiently to customers.
As companies face increasing privacy restrictions in the digital realm due to tightening regulations, owning this data is becoming ever more crucial for motorcycle manufacturers, dealerships, e-commerce platforms, accessory suppliers, insurance companies and other relevant service providers in our industry.
The decline of third party data
Digital marketing is currently undergoing a significant shift. With the decline of third party cookies and increasing privacy regulations, brands that have traditionally relied on third-party data from platforms like Meta and Google are finding themselves in a precarious position. If you are always spending money through paid ads to reach your audience you are trapped in reliance on that platform. If you ever need to cut your marketing spend due to cashflow, you are stuck.
As this highly informative Wired article on the topic explains, the era of third-party cookies is coming to an end, and businesses that fail to adapt to this new reality may struggle to connect with their audience effectively.
As Wired explain: “Soon, third-party cookies will no longer be allowed to track individuals across the web, harvesting reams of information to help deliver targeted ads. Already, many browsers are blocking them as tech companies rush to comply with the California Consumer Privacy Act and the European Union’s General Data Protection Regulation. There’s a harsh reality check coming for digital marketers and companies that still rely on cookies to identify, understand, and reach customers.”
For motorcycle brands, many of which have long depended on third party platforms to communicate with their customers, this shift highlights a critical vulnerability. When you rely heavily on paid advertising (and even an ‘organic’ social media presence) on third-party platforms, you become dependent on them for your marketing success. This reliance can be financially draining and limit your ability to pivot your marketing strategy. It’s not that online advertising will no longer be relevant or effective, it’s simply that it's likely to become more expensive and less targeted.
With regards to how social media fits into this picture, the simplest way of considering it is that even when you have lots of social followers or subscribers you are still reliant on the algorithm of the social platforms for your content to reach them. That’s not to say social media is of any less relevance or importance as we begin to focus increasingly on first party data-led marketing, rather that a robust marketing strategy will include an effective approach on all fronts.
Why first party data matters specifically for motorcycle brands
First-party data offers motorcycle brands a way to take control of their marketing efforts and build more meaningful, long-term relationships with their customers. Here's why this is particularly important for businesses in the motorcycle industry:
Enhanced personalization and targeting
Motorcycle owners and riders are a diverse audience with highly varied preferences and interests. First party data allows brands to segment their audience more effectively, enabling them to deliver personalised content, offers and experiences that resonate with individual customers. For example, a motorcycle manufacturer can use demographic information to target younger riders with promotions for smaller capacity bikes, while a dealership can tailor communications about touring models to older customers. This approach ties in perfectly with the approach we explored in this previous blog post on How to market to riders of different age demographics & skill levels.
By understanding (and owning the data on) your customers' preferences, you can market the most relevant models, products and services to them, yielding higher sales, fostering loyalty and gaining repeat business. And that is done most effectively when you are in control of your customers’ data first hand.
Cost-effective marketing
By taking greater ownership of first party data, brands in the motorcycle industry actively reduce their reliance on paid advertising through third party platforms. Instead of constantly spending money on ads to reach your audience, you can communicate directly with them through owned channels like your website, email newsletters, SMS marketing and direct mail. This approach not only cuts costs but also allows you to maintain control over your messaging and customer relationships.
First party data which you are in charge of can also be used to create lookalike audiences for paid campaigns, ensuring that your advertising efforts are more targeted and cost-efficient. This strategy allows you to stretch your marketing budget further while still reaching potential customers who are likely to be interested in your brand.
Data privacy compliance
With the increasing focus on data privacy regulations like GDPR in Europe and CCPA in California, owning first-party data is also essential for compliance. When you collect data directly from your customers, you have more control over how it's used and can ensure that your practices align with legal requirements.
For motorcycle brands, which often operate in multiple regions with varying regulations, having a solid first party data strategy can simplify compliance and reduce the risk of costly fines or reputational damage.
Leveraging first party data for success
To fully harness the power of first party data, motorcycle brands should consider a multifaceted approach that includes:
- Effective Newsletters: Regularly engage with your audience through informative and engaging newsletters. Share updates on new models, promotions, upcoming events and tips for riders. This keeps your brand relevant and fosters a sense of community. Check out our guide on How to make newsletters valuable for your brand.
- Strong Organic Reach: Invest in creating high-quality content across various social platforms. Building an organic following reduces your reliance on paid ads and allows you to connect with your audience on a deeper level. You’re still, of course, dependent on the algorithms of the likes of Meta, Google, YouTube, Tiktok and LinkedIn, but if your audience is spread across various platforms, you work effectively with influencers and your own content is strong you can still achieve great visibility.
- Sticky Web Content: Your website should be more than just a sales platform—it should be a hub of valuable content. Offer blogs, tutorials and videos that cater to your audience's interests and keep them coming back for more.
- Physical events: Attending the most relevant motorcycle industry events will ensure you connect with your audience meaningfully and memorably. Events are not only great for collecting first party data but also for building brand loyalty and community. Being part of the rider community at specific events is something we value highly at Motorcycle Marketing and we keep this guide to Which motorcycle industry events should you attend updated regularly.
- Connecting with riders more actively: Creating an app which your customers use as they ride is one of the most effective and valuable ways to gather first party data from them. The Royal Enfield app offers features such as navigation, on-the-go music, call support and real-time alerts.
Tying it all together
In a world where digital marketing is becoming increasingly complex, first party data is a critical asset for motorcycle brands. By owning and effectively utilising this data, you can personalise your marketing efforts, reduce costs, improve customer loyalty, increase sales, improve ROI and ensure compliance with privacy regulations. Those who invest in building and maintaining a solid first party data strategy will be well-positioned to thrive in the future.
If you're looking for ways to effectively and efficiently collect more first party data, get in touch with the Motorcycle Marketing team of experts.
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