First-party data is one of the most valuable assets a business can have. This data can improve your marketing efforts, create more targeted ads, and boost sales. Most importantly — it may be your best shot at personalizing your marketing as the cookie meets its end.
Businesses without a solid first-party data plan could be left behind when Google finally removes browser cookies from Chrome — leaving customers and revenue on the table.
Luckily, this guide will discuss first-party data, how to build a strategy around it, and how to use it to improve your business's bottom line. Let's get started!
Why You Need A First-Part Data Strategy
With Google's plans to eliminate third-party cookies from its Chrome browser in the coming years, the bread and butter of several digital marketing strategies is trouble.
Marketers have relied on third-party and second-party data for years to create targeted ads and drive sales. However, this data is collected by companies not affiliated with the businesses they are marketing to. This means that it can be less accurate and less reliable than first-party data.
First-party information is collected directly from your customers and website visitors. This data is more accurate and reliable because it comes straight from the source. Since you're the one collecting, you can ensure the data quality and ethicality.
Using first-party data, you can create marketing campaigns that are more targeted and more likely to result in sales. In short, first-party information is essential for any business that wants to stay ahead of the curve.
First-Party Data Strategy — An Overview
First-Party Data Collection
We have a whole other article dedicated explicitly to first-party data collection techniques, but we'll do a quick briefer right now:
The most important thing to remember when you collect first-party data is to offer value in return.
No one wants to hand over their personal information to a business for no reason. You need to offer an incentive, such as a discount or free shipping. Once you have their permission, you can start collecting first-party data.
There are a few different ways to collect first-party data:
- Online surveys, polls, and customer feedback
- CRM software (HubSpot, Salesforce)
- Analytics platforms (Google Analytics, Mixpanel)
Each of these methods will give you different insights into your customers. Try out a few and see which ones work best for your business.
First-Party Data Filtering
Now we want to do some segmentation and analysis. Your goal at this point in your strategy is to extract insights from your customer data — here are the different categories you should focus on:
- Behavioural data to understand how customers interact with your brand.
- Demographic data to improve your content targeting.
- Attitudinal data to get a pulse on customer sentiment.
- Transaction data to get a complete picture of purchasing behaviour and history.
An important tip — when you purchase third-party data, it's usually pre-filtered and segmented. However, if you start segmenting your audience's data too soon, you could miss crucial insights. Wait until your data reaches critical mass before you make solid conclusions.
But once you're there, here are a few ways you might segment your data points:
- Location
- Gender
- Age group
- Family size
- Interests and hobbies
- Average order value
- Sentiment
Once you've segmented your first-party data using a CDP or data management platforms, you can start using it to improve your marketing efforts (more on those tools in a bit).
We'll discuss a few different ways to do this in the next section.
First-Party Data Management
Your data points are likely widespread and scattered, so you need to stitch them all together into unified customer profiles — this is where a customer data platform (or CDP) comes in handy.
CDPs will help with filtering (like in the previous step) and integrate with other tools to help you act on your 1st-party data insights. (These platforms can also incorporate second- and third-party data!) A data management platform will offer similar features, but they're usually limited in comparison.
Now that you have your data, it's time to activate. Here are a few ways you can use 1st-party data to augment your marketing operations:
- Personalization: Use first-party data to personalize your marketing messages and content. This will make your brand more relatable to customers and improve conversion rates.
- Lead scoring: Assign a score to each lead based on their first-party data, such as how engaged they are with your brand or how likely they are to convert. This will help you prioritize your sales efforts and focus on the most valuable leads.
- Churn prevention: Use first-party data to identify customers at risk of churning. Reach out to them proactively and offer them deals or incentives to stay with your brand.
There are endless ways to use first-party data, so get creative and see what works best for your business.
Get Started With First-Party Data Today
First-party data is essential for any business that wants to stay ahead of the competition. Collecting and activating first-party data can create more targeted marketing campaigns, improve customer relationships, and prevent churn.
Need to wrangle all that data into one place? Portage Labs can help. Our team of martech experts will help orient your stack around your business objectives — supercharging your output. Get in touch today to learn more!
Frequently Asked Questions
What is an example of first-party data?
First-party data is any data that you collect yourself directly from your customers. This could include online surveys, CRM software, or analytics platforms.
Why is first-party data important?
First-party data is crucial because it gives you a direct insight into your customers' needs and wants. This allows you to create more targeted marketing campaigns and improve your overall customer relationships.
What is the difference between first-, second-, and third-party data?
First-party data is collected directly from customers, second-party information is collected from partners, and third-party data is collected from public sources. First-party data is generally the most reliable and valuable.
