First Party Data

What is First Party Data?

First party data is information about individuals that is collected directly from them, rather than from third-party vendors. First party data includes:

  1. Direct data submissions to your website or app
  2. Your CRM database contains customer information
  3. Surveys and feedback from customers
  4. Social media data such as audience demographics, etc.

First party data is more valuable than third or second party data because it is directly collected from the audience of a business. The business also owns the first party data, which they can use to improve customer service and marketing campaigns. However, first party data is still subject to privacy laws at both the national and international levels.

Utilization of first-party data

Marketers can make use of first-party data in many ways to increase their campaign’s ROI, such as personalization and retargeting. There are many marketing uses that first party data can be used for, due to its superior quality to third and second party data. Here are some of the most important uses of first-party data for marketers.

  1. Retargeting is one of the most important uses for first party data. First party data is directly collected from your audience. This makes it much more reliable for retargeting purposes.
  2. Predicting behavior patterns: Another use for first-party data is to predict a group of potential customers’ behaviour with greater confidence. E-commerce companies can, for example, predict the shopping habits and buying habits of their customers based on past actions taken in the online shop.
  3. Audience insights: First party data can be extremely valuable in gaining insight into your audience. This data can include audience demographics and intent and be used to better understand your ideal customer profile.
  4. Personalized content and advertising:In addition, first-party data can be used for personalizing the customer experience by serving ads and content to customers based on previous actions.

How to collect first party data?

  1. Website Pixels: You can collect first-party information by adding tracking pixels on your website, products, or social media profiles. These pixels gather information about consumer behavior and actions. This data can be collected whenever a visitor visits your website, interacts with your social media posts or views your products and/or services
  2. Customer Relations Management (CRM): Customer Relations Management (CRM), platforms collect data from customers’ direct interactions with your brand, and store it for future reference. Interactions can be tracked via email, phone, social media, website or chat. CRM can collect contact information such as name, email, title, purchase history, lead source and customer interaction records.
  3. Data Management Platform (DMP): A DMP can collect first party data from many sources and segments. It can also track specific behaviors like downloads, clicks or purchases, as well as demographic information. DMP collects anonymous data from multiple sources such as IP addresses, cookies, and device IDs to help marketers target the right audience segments.

The Benefits of First-Party Data

  1. Collect data according to regulations: First-party data can be used with minimal risk because you know where the data came from and how it was collected. Your collection processes will be in compliance with regulations if you use first-party data.
  2. Accuracy: First-party data comes directly from customers and audiences. It is as precise and accurate as possible.
  3. Relevancy: First-party data is extremely relevant to your company because it comes directly from your customers. This gives you valuable insight into your prospects and customers, which allows you to better understand their preferences.
  4. Cost-effectiveness: Collecting first-party information is extremely cost-effective, as you already have it in the systems. You just need to make use of it. You don’t have to pay anything for first-party data, unlike third- and second-party.
  5. Third-Party Cookies Replacement: The GDPR and CCPA have begun to prohibit data collection without consent in order to promote equity in customer Privacy. This means that third-party cookies will be removed by 2022. Many companies have stopped using third-party data in their digital marketing strategies. They also no longer use third-party cookies to track and identify customers.

Get in touch with us and learn how to implement a first party strategy for your business.

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