First Party Data Collection

Projected revenue increase (range):

Picture 1

Research suggests that email marketing delivers an average return on investment (ROI) of $36 to $40 for every dollar spent . One study found that customers who received emails spent 550% more annually than those who did not . Another study estimated the value of an email address to be $118 . Based on these findings, it’s reasonable to estimate the value of an email address to a retailer in the range of $33 to $118.

Keep in mind that this is just an estimate, and the actual value of an email address can vary significantly. To maximize the value of email addresses, retailers should focus on building high-quality email lists, implementing data-driven email marketing strategies, providing valuable content and exclusive offers, and adhering to data privacy regulations .

Number of customers (non-prosumer): 2,940,000

Contact Capture Rate	Contact Value Low ($)	Contact Value High ($)	For this Study ($)
30%	$33	$118	$45.75

First-Party Data Business Models in Retail Create a Virtuous Flywheel

Internal effectiveness & efficiency boost

External business potential

$203.7M to $723.5M

Increase in Revenue over 7 years for this Study: $282.5M

Factors that could increase revenue increase to $723.5M level:

Efficient execution of BCG Project Experience Virtuous Flywheel (see Picture 1)
Loyalty: Program execution with data insights
Personalization: Unique communications based on customer preferences
Increase Contact Capture Rate beyond 30% (to Oracle suggested rate of 60%)
Correlating First Party Data with Video Insights for high propensity to spend & large basket size customers

* Oracle found that almost 60% of shoppers actually demand in-store WiFi. We are using 30% connectivity rate