Why First-Party Data is More Important Than Ever and How to Use It

Marketers must find new methods to gather consumer data as third-party cookies are no longer used to protect user privacy and comply with laws like the GDPR. Many businesses that have depended on cookies to track user behavior and advertise online face difficulties as a result.

This is a big change for the marketing industry from depending on information from other websites to advertise and monitor cross-domain activity. We’ll examine data collection methods and the best substitute for third-party data in this blog. Welcome to the world of first-party data, which is the solution to digital marketing’s cookie-free future.

First-party data: what is it?

Information gathered from your audience via your first-party data owned online platforms. Because people have given their permission for you to utilize their data to connect and interact, it is trustworthy and problem-free.

First-party data sources include:

Behavior of a website or app
Subscribers to newsletters and emails
Campaigns to generate leads
Surveys
Memberships on social media
Consumer comments
Conversations on sales and customer service
Chat online

You can use these channels to utilize business and customer data and obtain insight. Demographics, online activity, email engagement, sales interactions, feedback, and past purchases are examples of data types. Other data types include stock levels and return information.

What advantages does first-party data offer?

First-party data provides valuable insights into your audience because it belongs to you and you alone. This indicates that it provides numerous advantages, such as:

Integration and personalization
Aim for the correct clients
Control and accuracy
Boost connections with customers
Observance of privacy regulations
Openness
Reduced price

Additionally, it keeps your rivals in the dark about your motivations for trying out novel strategies or engaging in particular marketing initiatives, such as influencer marketing. Previously, anyone could obtain the same information from outside sources, but now, only you are aware of the preferences and actions of your clients.

How do you gather first-party data?

First-party data can be gathered in a variety of ways. Users use a range of channels to enter information, as you can see above.

By employing a tracking platform like CrazyEgg or inserting a pixel regarding a user’s actions and activities, you can keep track of them across your website/app and social network profiles. This method keeps track of the pages individuals visit, the conversations they have, and the subjects they are interested in (what blogs they read, for instance). Additionally, you can obtain data like timestamps, visited URLs, IP addresses, and favorite languages.

In order to build a database of all visitors to your owned assets, all of this data should be fed into your CRM platform. This will eventually help you develop a profile of that person so you can target them with more conversion-friendly content.

Additionally, you should consider what first-party information you wish to gather at what point in the consumer experience. For instance, check for information from a social lead generation or subscription form during the awareness stage. Webinars might be helpful in collecting information or considering purchases during the interest stage.

What obstacles exist for gathering first-party data?

Even while first-party data has enormous value and is becoming increasingly important to collect and use, many businesses are finding it difficult to realize its full potential.

It is challenging due to organizational and technological reasons, according to Google’s research conducted in the APAC region. The incapacity to connect technologies (perhaps because many teams are still operating in silos) is the main cause, followed by a lack of knowledge of data.

Organizational obstacles include inefficient team structure and a shortage of internal talent, which may be caused by a 2022 rivalry for digital skills and a lack of departmental cross-functionality.

Use Google to think

Don’t let your businesses fall to these obstacles. Make sure your data can be integrated and shared throughout the organization, and that you have the skills needed to assess and use the pertinent data in a way that prioritizes and improves customer experience while generating return on investment.

With first-party data, what are your options?

First-party data may be a treasure trove for your brand if used properly. Marketers may find it more difficult, particularly when it comes to competition analysis, if third-party cookies are discontinued. The good news is that as first-party data improves customized, it will become simpler to target the appropriate individuals.

Indeed, according to BCG’s “Global Digital Marketing Maturity Survey,” businesses who integrate their first-party data sources can treble the amount of money they make from a single advertisement, message, or outreach, and increase cost effectiveness by one and a half.

You should consider your goals before you begin using your data. Do you want to increase leads, re-engage lapsed customers, or raise brand awareness? You can make efficient use of your first-party data if you know what you’re attempting to accomplish.

These are six practical applications for your first-party data.

Emails: Divide up your audience and write interesting, tailored emails for each segment. Check out our email and copywriting checklist if you’re having trouble coming up with interesting content.
Landing pages: Use consumer data on your landing pages to do an A/B test to see which message appeals to a certain audience.
Paid advertisements: Use paid advertising across platforms to target specific personas.
Social media: Produce customized material in a range of forms (such as blogs, videos, and ebooks) that will target different audience segments in both sponsored and organic social media posts
Provide early access to deals, discounts, or free content (such as a pertinent eBook) through loyalty programs or memberships.
Account-based marketing: If you’re a business-to-business marketer, use this information to target potential customers through digital channels and produce pertinent, tailored content.

How to obtain as much first-party data as possible

How are you going to create first-party data now that you are aware of its advantages and applications? You may boost your targeting opportunities and reach by gathering more first-party data in a few easy ways:

Increase your use of lead generation channels. Since people are so active on social media, this is an excellent place to start. For business-to-business leads, LinkedIn is an excellent network, while Facebook and YouTube are widely used by audiences worldwide.
Re-engage non-converting prospects or lapsed customers by sending them a customized email shot from your CRM. To entice visitors back, you can provide a discount or a free download.
Examine and improve your forms: If you use forms on your website, app, or social media accounts, check them to see if you can add questions that provide more insights about a potential customer, including job role or firm size.
Try out additional channels and platforms: There are a lot of fantastic channels and platforms available. Does your business use WhatsApp or Reddit? Have you tried using YouTube for advertising? Determine the channels on which your target audience might be engaged and launch a campaign.

By doubling down on the channels you presently use and experimenting with new ones, it should be simple to generate more first-party data.

What is ahead for first-party data and marketers?

There is no time to waste organizing your first-party strategy to boost online revenue, as Google is intending to phase out third-party cookies in 2023.

Integration is an essential component of your plan since you must gather information that gives you insight into your clients and enables you to create a profile of each one so that you can send them tailored messages. Additionally, you should investigate zero-party data as a means of obtaining useful marketing data that’s supplied voluntarily by clients.

Today’s marketers must learn more about their customers in order to enhance the customer experience. The solution to it may lie in first-party data.

Bottom Line

As third-party cookies fade into obsolescence, first-party data emerges as the cornerstone of a privacy-focused, data-driven marketing landscape. By leveraging data directly from your audience, businesses can achieve deeper insights, enhanced personalization, and improved customer relationships, all while adhering to evolving privacy regulations. Collaborate with a digital marketing agency today, and secure your competitive edge by building authentic connections and delivering exceptional experiences for your audience.