Data privacy is one of the main concerns in marketing nowadays, and creating safe connections with an audience is key for marketers. Using first-party data allows companies to get insights straight from the customer.
Let’s explore how brands can use first-party data, its challenges, and its role in a cookieless world.
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First-party data is information a business collects directly from the audience or customers with their consent. When your company collects data from users, it owns the data. First-party data is considered a reliable, accurate, and ethical way of collecting user information.
There are two main types of first-party data, implicit and explicit data. Implicit data is information collected from user interactions that they don’t provide directly. This includes website visits, engagement metrics, and in-app behavior. Because it reflects real actions rather than stated preferences, implicit data often reveals how users truly interact with a brand, making it highly valuable for predicting future behavior.
Explicit data is information that users actively choose to share with you. Examples include survey responses, direct feedback, and newsletter sign-ups. Since it comes straight from the source, explicit data provides clear insights into user preferences and purchase intent, offering a reliable foundation for personalization.
There are many potential sources you can use to collect first-party data. Basically, any digital and advertising channel used by internet users to input information can be used with their consent as a data source.
This includes website or app behavior, results from lead generation campaigns’ forms, surveys, subscriptions, customer feedback, customer support online chat, and email subscribers.
You can categorize first-party data sources according to the following data types:
Since it is sourced directly from the user, from your own channels, first-party data provides higher accuracy and relevance than other types of data. This reduces the risk of data bias. Another advantage of collecting first-party data is the ability to customize the collection to meet your company’s specific needs.
Using first-party data also gives you control over how the data is collected and used. This data also makes data-driven analysis much simpler, since you have the data from your own sources.
First-party data has advantages when being used as a basis for marketing decisions in a campaign. You can use it to segment audiences, refine the messaging, and personalize experiences. When you integrate this data into CRM systems and analytic platforms, it helps identify high-value customers, predict future behavior, and optimize ad spend. First-party data is also used in retention campaigns, as you can give more tailored offers and recommendations.
Using first-party data has its obstacles, too. Collecting data from siloed systems can be challenging for organizations that need to collect from several channels. Maintaining data accuracy is also difficult if the databases are poorly maintained. Achieving compliance is another potential issue. Getting the user’s explicit consent can also be a barrier, as many viewers can decline.
Leveraging first-party data effectively goes beyond refining collection techniques and focuses on encouraging user activation. For instance, optimizing the website interactions, creating loyalty programs, and stimulating app engagement can increase the quality of data collected. Focusing on good segmentation can help discover patterns and give valuable insights, as well as using identity resolution to resolve fragmented profiles.
With third-party cookies phasing out, first-party data is more important than ever. Advertisers can reach their audience with relevance while keeping privacy. Contextual targeting is used with first-party insights to maintain precision without invasive tracking. First-party data helps you personalize messages and create customer relationships.
