First Party Data: The Importance, What It Is and How to Use It
As Tech giants begin to ring-fence their user’s data, it’s time to get a plan of your own.
Why did Meta lose $200b from its value this month? How can such a large company be spooked so easily by the actions of others and more importantly, How will the EU and Apple’s push for better consumer data rights effect your business in 2022 and beyond? Will Google’s power grab to drop cookies and replace with Topics be successful, and again, how does this effect you? As a business owner, you’re always looking for better ways to understand your customer and improve your marketing performance. For years we have all been a little lazy here, relying on third party cookies to track customers. So what happens now? The answer has been in front of us all along, our customers, so if you’re not already collecting first-party data, now is the time to start!
What is First Party Data?
First-party data is one of the most valuable sources of information you have about your customers. It’s data that you collect directly, as opposed to data pulled from other sources like social media or surveys. This data is incredibly valuable because it’s unique to your business and gives you a better understanding of who your customers are and what they want.
So how can you start collecting first-party data? There are a few different ways:
- Collect data from your customers directly. This can be done through surveys, forms, or by collecting information when they purchase something from you.
- Use session data to collect information about how your customers are interacting with your website.
- Integrate customer data from all of your touchpoints, not just online. First party data can come from anywhere, so make sure you’re collecting it all in one place!
- Expand your CRM system to collect and analyse customer data across as many channels as possible.
Using all of the above can assist you figure out who your consumers are, what they desire from their interaction with you, and how best to engage them in ways that result in meaningful interactions.
Plan and Gather First Party Data
Create a roadmap.
First-party data is the starting point for a more comprehensive omnichannel marketing plan that can help companies achieve lower-funnel goals such as customer loyalty, retention, and upselling. Define your marketing and consumer experience goals and objectives, as well as the tactics and analytics required to execute on the plan, and lay out a timeline for how
Determine the best data sources
Examine your data sources to figure out what data is being generated and how it’s measured. Cross-verify your data sources and data points with the marketing and analytics use cases you wish to execute, ensuring that you collect the information needed for your goals.
Really put your data to work
First-party data is essential for building personalized and meaningful customer experiences in every setting. To create client-centric initiatives that connect marketing, product, and service, integrate offline and online data into a corporate-wide identity asset.
Agree KPIs, monitor and evaluate over time
Make sure you constantly check your first-party data capabilities, track progress, and incorporate what you’ve learned at each stage. Develop key performance indicators for your solution that include operational capability as well as support for cross-channel marketing efforts. Track your data volume, source, processing speed, profile depth, and which data to be used for analytics and measurement.
Build a Foundation for Long-Term Success
Third-party data isn’t enough anymore. Brands are realizing the limitless potential of first-party data for driving marketing success.
Using all of a company’s first-party data to solve consumer identity, marketers may create a data asset that serves as the foundation for all consumer interactions – across the web, mobile apps, retail outlets, email, digital advertisements, phone centres and beyond. With knowledge, marketers may extend reach across channels and develop customer connections, while also increasing brand earnings.
Yes, keeping up with today’s customers is difficult, as they switch from one platform or device to the next. However, you’ll find the greatest route starts and finishes with data you already have. If you utilize the correct technology combined with customer intelligence, based on first-party information, you will be fine.