What is First-Party Data?
First-party data is information that is collected directly from your customers with their consent. It is a valuable asset that can improve the ROI of your marketing efforts. It’s also becoming more important to gather as privacy regulations tighten and consumer expectations shift.
For a long time, brands have relied on third-party identifiers to target the right audiences in their digital marketing campaigns. However, first-party data is now becoming essential as digital advertising shifts towards a privacy-first approach. Google Chrome’s deprecation of third-party cookies is behind the shift, but first-party data can also be used to make AI-driven campaigns more accurate and profitable.
However, many brands still haven’t harnessed its full potential. A recent study by Think With Google found that while 95% of marketers say that first-party data is important to their digital marketing, only 1 in 3 claim to be using it effectively.
What is First-Party Data?
First-party data is information collected directly from your customers with their consent. It is sourced through a brand’s owned channels and can include website or app interactions, purchase histories, feedback, social media interactions, and email or loyalty program engagement.
It is information that your customer has willingly shared with your brand and tends to be more privacy-compliant. Since it comes straight from the source, it can also offer deeper insights into your audience.
However, brands need a sustainable first-party data strategy to capture it. First-party data is often dispersed across multiple channels and a Customer Data Platform (CDP) and/or Customer Relationship Management Platform (CRM) are often needed to pool it together and draw out actionable insights.
Why is First-Party Data important?
Marketers have long relied on third-party cookies to capture signals about their customers and target them. However, they weren’t designed with a privacy-first mindset and are gradually being phased out.
Beyond the growing demand for privacy, first-party data is also highly accurate and cost-effective. With the right mechanisms in place, you can capture and store first-party data cost-effectively.
AI is also increasingly being used for audience targeting and if you’re creative, you can leverage your first-party data to create a competitive advantage. You can target your audience more effectively via AI-driven campaigns, such as Meta Advantage+ and Google Performance Max, which benefit from being fed with first-party data signals.
There are also many other benefits to capturing first-party data:
Accuracy and Reliability:
Unlike third-party data, which may come from various sources and could be outdated or inaccurate, first-party data is directly sourced from your audience. This makes it more accurate and reliable, allowing for more effective audience targeting and personalisation.
Customer Insights:
First-party data can give you valuable insights into your customer’s behaviours, preferences, purchase history, and engagement patterns. These insights can be used to enhance customer experience and boost revenue.
Trust and Loyalty:
Customers enjoy tailored experiences with brands. First-party data can be used to create meaningful and relevant offers that foster a sense of trust and loyalty.
Cost Efficiency:
First-party data can improve the accuracy and ROI of your marketing campaigns. It also reduces your reliance on expensive third-party data sources or broad-reaching campaigns that don’t resonate with your target audience.
Compliance and Data Privacy:
First-party data can improve your compliance with privacy regulations such as GDPR and CCPA. It is collected with user content and your business is in control of how it’s used.
How to Collect First-Party Data
When it comes to collecting and storing first-party data, a little bit of planning can go a long way. There are many brand touchpoints and it’s important to capture customer information from them with consent. You should also build trust and communicate the value exchange to encourage people to share their data with you.
Here are a few considerations to include in your first-party data strategy:
Select a Secure Platform:
CDPs and CRMs help you centralise customer data and interactions. Use them to capture and organise customer information such as contact details, purchase history, support inquiries, and feedback and build comprehensive customer profiles.
Tap Into Your Web Analytics:
You can use web analytics tools such as Google Analytics to track visitor behaviour on your website. Metrics such as page views, time spent on site, bounce rates, and conversion paths will help you understand user interactions and preferences.
Leverage Email Marketing and Lead-Generation Campaigns:
Sign-up forms, lead-generation campaigns, and preference centres can be used to collect demographic information, interests, and preferences directly from subscribers.
Encourage App Users to Create an Account:
If you have a mobile app, prompt mobile app users to register and create a profile. You can then use in-app analytics and user tracking to gather insights into user behaviour and preferences.
Gather Customer Feedback:
Regularly invite feedback from customers through surveys, feedback forms, or post-purchase evaluations. This direct input provides valuable insights into customer satisfaction, pain points, and areas for improvement.
Capture Social Media Engagement:
Social media engagement provides insights into customer demographics, interests, and sentiment. Analyse comments, shares, and reactions to understand how your audience perceives and interacts with your brand.
How to Use First-Party Data
Once you've collected first-party data, you need to use it to enhance your marketing campaigns. Here are six different ways you can use your first-party data:
Audience Segmentation:
Segment your audience based on characteristics such as demographics, behaviours, preferences, and purchase history. This enables you to deliver targeted messaging and personalised experiences across multiple channels.
Personalised Content and Recommendations:
Leverage first-party data to personalise content, product recommendations, and offers based on individual preferences and past interactions. This enhances user experience and increases the likelihood of conversion.
Behavioural Retargeting:
Use first-party data to implement behavioural retargeting campaigns that re-engage users based on their past interactions with your website or app.
Email Marketing Segmentation:
Segment your email marketing lists based on subscriber preferences, purchase history, or engagement levels. Deliver targeted email campaigns with relevant content and offers.
Customer Loyalty Programs:
Use first-party data to create and optimise customer loyalty programs. Reward loyal customers based on their purchase history or engagement levels, fostering long-term relationships and repeat business.
Predictive Analytics:
Leverage predictive analytics models to forecast future customer behaviours and trends based on historical first-party data.
All digital brands need a first-party data strategy
First-party data is customer data that’s gathered with consent. That’s why a first-party data strategy can help brands become more relevant and privacy-compliant at the same time.