(This is the 2nd post of a 4-part series on second-party ecommerce data for non-ecommerce businesses)
Financial companies can benefit from second-party data
It's not just ecommerce companies that can benefit from second-party data and being part of a data co-op. While knowing a certain user has gone to a online shoe retailer, for example, and went as far as the shopping cart page before leaving the site is great data for a competing ecommerce shoe marketer to know, there is also something quite tangential in the information data co-ops collect that can be very beneficial to companies that aren't in the ecommerce space directly. Financial companies (certain ones) can be a good fit for using second-party data for both branding purposes and finding potential new customers.
Spare Change Sites and Services
Over the past couple of years, sites and services like Digit, Acorns, Keep Your Change (Bank of America) and Way2Save Savings (Wells Fargo and Wachovia Banks) are trying to get the average person to save more without the planning side of the equation. Acorns, Keep Your Change and Way2Save all pretty much do the same thing, which is round up your daily purchases and then puts that amount that was rounded up into a savings account for you. For example, you buy a cup of coffee for $3.25 with your debit card and these apps and services now take the $.75 (rounding the spend to $4.00) and placing that amount in a savings account for you. Digit, comes at the idea of savings a bit differently, but still from the perspective of small increments of savings at a time. Digit analyzes your spending habits within your checking account and then finds areas where to take small amounts of money and transfer that into a FDIC insured savings account.
These types of financial companies could of course use second-party ecommerce data to further their business reach. What is a better group of people to market to for these businesses then those who are actively looking to make purchases online?
For Small Investors
Having data on users who are actively shopping online and then combining that data with keyword terms like "real estate", "autos/vehicles" or "televisions" may give an investing site a good indication on how to address this type of user. For example, if a user just jumps off a real estate site, maybe a good piece of copy for an ad from an investment company would read: "Looking to buy your next home? Let us show you how to invest for a bigger down payment."
An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stockexchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors. (Source: Investopedia)
ETFs are usually targeted to younger or novice investors for various reasons. Some of those reasons are that ETFS are an easy and low cost way to diversify your portfolio - as well as give you flexibility.
Again, financial companies that deal with ETFs can use second-party ecommerce data to create targeted marketing campaigns in a similar manner as noted with the small investment sites previously in this post.
Other non-ecommerce companies who could benefit from second-party data
Any business would desire to have data from users who are ready to make purchases soon or are making purchases in real-time. And this is what having access to second-party affords a business to do. A non-ecommerce site, like certain sectors in the financial industry, can use second-party data to extrapolate what it may mean for its business, if it knows not the demographic data of the a user, but simply that a user is ready to spend money right now.
Here are some other posts on how second-party data can help non-traditional ecommerce businesses:
- How Second-Party Ecommece Data Helps Insurance Companies
- How Second-Party Ecommerce Data Helps Credit Card Companies
- How Second-Party Ecommerce Data Helps Coupon Companies (Coming soon)