First-Party Data Collection: 15 Creative Strategies to Understand Your Customers
Businesses of all sizes are always looking for new and innovative ways to collect first-party data from their customers. The more data points you have, the better you will understand your customer base, which can lead to increased sales and profits.
With the imminent death of the third-party cookie, it's becoming crucial for businesses to focus on gathering data directly from their customers — otherwise, their operations could fall behind.
In this blog post, we will discuss 15 ways to do first-party data collection. Some of these methods are obvious, while others may be a little less common.
Let's go!
What is First-Party Data?
First-party data is collected directly from your customers. This can include customer contact information, purchase history, and demographics.
This is valuable data because it gives you a direct look into the people buying from you. Your business can use it to improve your marketing efforts, target new customers, and increase sales.
While building out a first-party data strategy, there are a few categories you should keep in mind:
- Contact data (C). General information like name, email address, phone numbers, etc.
- Behavioural data (B). Refers to how customers interact with your product, service, or brand.
- Attitudinal data (A). How customers feel about your product or service, and their level of satisfaction.
- Demographic data (D). Tells you who your customer is, including age, gender, location, and income.
- Transaction data (T). Data about customers' purchases, including what they buy, how often they buy, and how much they spend.
As we go through our list, we'll label each strategy with the kind of data it can help you collect.
First-Party Data vs. Second-Party Data vs. Third-Party Data
Before we dive into our list of ways to gather first-party data, it's essential to understand the difference between first-, second-, and third-party data.
- Second-party data is collected by one business and then shared with another (non-competitive) company. For example, if you were to collect customer data and then share it with a marketing agency, that would be considered second-party data.
- Third-party data is collected by a third party (surprise!), such as a research firm or an online platform. They sell this data to other businesses. For example, if you were to buy customer data from a research org, that would be considered third-party data.
Why focus on first-party data?
Benefits of First-Party Data
- Higher data quality
- It's your brand's own data
- Build your own audience segments
- Create a moat around your digital marketing
15 Different Ways to Collect First-Party Data from Customers
In the following list, we'll discuss tools and strategies to help you with collecting first-party data about your customers:
- Online forms and surveys
- Physical forms
- In-person events
- Product registrations
- Website heatmaps
- A/B testing
- Soliciting reviews
- Giveaways
- Loyalty programs
- Customer service interactions
- Sales interactions
- Social media analytics
- Web analytics
- Email analytics
- Purchase history
Online forms and surveys
Forms are relatively easy to set up and can be done entirely online. You can use online forms to collect demographic information, referral history, customer feedback, and more.
Data: (C, B, A, D)
Tools: Typeform, SurveyMonkey, Google Forms, Microsoft Forms
Physical forms
Another option for collecting first-party data. Physical forms are a great way to collect demographics, customer opinions, and more. These forms can be used at in-person events or sent to customers in the mail.
Data: (C, B, A, D)
Tools: PostGrid, Lob
In-person events
As mentioned earlier, you can hand out forms at events — but you can also get creative.
- If you have several booths, which ones are most popular?
- If you're offering several snacks, which ones run out the quickest?
This data might not be actionable right off the bat, but it can help you create hypotheses for further testing.
Data: (C, B, A, D)
Tools: Eventbrite, Bizzabo
Product registrations
When customers register their product, they are typically required to provide their contact information — you could use this for marketing purposes. In addition, you can also collect information about the product itself, how it's being used, and any feedback the customer may have.
Data: (C, B, A)
Tools: QR codes, CRM
Website heatmaps
A website heatmap is a visual representation of how users interact with your website. This data can uncover high-converting attributes on your landing page, friction points, and where people are exiting.
Data: (B)
Tools: Hotjar, Crazy Egg
A/B testing
A/B testing is an excellent way to learn how your customers feel about specific features of your website, app, etc. You can see which version performs better by testing two variations of a page (Version A and B). This data can be used to make informed decisions about your product.
Data: (B)
Tools: Google Optimize, Optimizely, VWO
Soliciting reviews
You can collect customer reviews on your website, social media, or third-party platforms like Google and Yelp. In addition to the review, you can collect information about the customer's demographics and location.
Data: (C, A)
Tools: Google My Business, Yelp
Giveaways
Who doesn't love a freebie? When customers enter your giveaway, they typically have to provide their contact information, which you can use for marketing purposes.
Data: (C)
Tools: Gleam, Rafflecopter
Loyalty programs
With a loyalty program, you can also collect data about the customer's purchase history and how often they visit your store or website. This information can power personalization and future product development.
Data: (C, A, B, D, T)
Tools: Stamped, Fivestars
Customer service interactions
Whenever someone interacts with your customer service team, there is an opportunity to gather first-party data. This data can be used to understand the customer's needs, pain points, and how they feel about your product.
Data: (C, A, B)
Tools: Zendesk, Help Scout
Sales interactions
Sales interactions are similar to customer service interactions. There is also room to gather information about average order values, composition, and beyond.
Data: (A, B, T)
Tools: Salesforce, Hubspot
Social media analytics
You can track how often your posts are shared, which posts are the most popular, and how people interact with your brand on social media. Your most shared content can inform your marketing strategy and lay the foundation for any referral programs.
Data: (C, A, D)
Tools: Hootsuite, Sprout Social
Web analytics
Track how people found your website, how long they stayed on it, and which pages they visited. This information can improve your website's design and user experience. From an SEO perspective, it can inform your future content strategy.
Data: (B)
Tools: Google Analytics, Mixpanel, Heap
Email analytics
Track how often your emails are opened, how many people click through to your website, and which links are the most popular. This information can improve your email marketing strategy and ensure you send the right message to the right people.
Data: (C, B, A)
Tools: Mailchimp, Constant Contact, Hubspot
Purchase history
You can also collect data about the customer's purchase history. This information can enhance your understanding of what products are most popular, how often people purchase, and how much they spend on average. This data can also inform your loyalty program and personalization efforts.
Data: (B, T)
Tools: Stripe, Square, Shopify
How to Manage Your First-Party Data
When collecting data from so many touchpoints, you'll need a secret weapon to centralize and unify all this information. The tool in question is a CDP, or customer data platform.
A CDP is a software platform that collects, stores, and organizes customer information from multiple touchpoints into a single database. This way, you can get a complete view of the customer journey and create personalized experiences at scale.
Alternatively, you could use DMPs, or data management platforms. A DMP is a tool that helps you collect, segment, and activate customer data for marketing purposes. However, DMPs typically don't offer the same level of insight as customer data platforms.
Fend Against A Cookieless Future With First-Party Data
It's no secret that third-party cookies are on the decline. Google's phase-out of the browser cookie will significantly impact how businesses collect and use data for advertising purposes.
As a result, it's more important than ever to focus on collecting first-party data. Not only is this information more accurate than third-party data, but it also helps to build a moat around you and your customer base — who doesn't love that?
With an armada of data collection techniques under your belt, all you need to do now is begin. Good luck!
Need some wrangling all those tools and data into your CDP and martech stack? Portage Labs can help. Our team of experts will make the most of your martech and supercharge your results.
Curious to learn more? Get in touch today!
Frequently Asked Questions
How can I collect first-party data?
There are several ways to gather first-party data, including web analytics, email analytics, social media analytics, and purchase history.
What is a CDP?
A customer data platform (CDP) is a software platform that collects, stores, and organizes customer data from multiple touchpoints into a single database. This way, you can get a complete view of the customer journey and create personalized experiences at scale. A similar alternative is a DMP, or data management platform.
How can I use first-party data?
Businesses can use first-party data for various purposes, including marketing, advertising, product development, and customer service. Understanding how your customers interact with your business can create better experiences; that way, you'll meet their needs and improve your bottom line.
