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E-commerce Brands Waste First-Party Data Value, Expert Says

In an interview, Aleksi Montonen argues that many e-commerce retailers significantly underestimate the value of their first-party data. They often treat it merely as an email list for newsletters or measure the size of their customer base, ignoring the potential of inactive and passive customers. Montonen highlights a case where a retailer loses €700,000 annually from VIP customers becoming passive. He advocates for a transparent value exchange where consumers willingly share data in return for tangible benefits like personalized recommendations or exclusive perks. The discussion also covers Sanoma's project, where Montonen's company helped build a secure data-matching bridge in real time without compromising data sovereignty or relying on third-party cookies. Montonen emphasizes that AI increases the value of first-party data, as predictive AI requires clean, deterministic historical data. He stresses the importance of unifying customer data for effective AI strategies and reducing dependence on big tech advertising platforms.