This greatly contrasts with 3rd-party aggregators that use cookies to digitally collect data most often without customers’ consent, and might not be completely accurate. As customers are gaining more awareness of their privacy rights and data ownership, shifts in tech are making 2nd and 3rd party data increasingly obsolete.
Policy changes and cookieless browsers are forcing marketers to adjust their strategies, and they aren’t always thrilled about it. But first-party data is arguably a huge advantage, and marketers need to start treating it as such. A joint study from Google and Boston Consulting Group found that:
So what is first-party data in the first place, how are marketers gathering it, and why should you get on board?
First party data is information that a company collects directly from its customers. The company, being the ‘first-party’, utilises different channels of engagement to gain insight into a customer’s profile. This can include:
… and much more! Companies employ many different methods to gather such information, such as online surveys, emails, chatbots and customer service chats, online behaviour like website visitation, mobile apps, client feedback and in-person events.
Most importantly though, customers own their data and willingly agree to provide it directly to companies. This guarantees data accuracy, that which hasn’t been altered by 3rd parties and is ethically clean.
So how does first-party data differ from 2nd and 3rd party-data?
We know first-party data is great, but in order to properly appreciate its benefits, we need to understand other data collection methods and how they differ.
First-party data is a more direct, consensual and ethical way to collect data. But why is it so beneficial and what is it used for?
Essentially, marketers use first-party data to personalise the customer experience and develop accurate customer profiles. By paying attention to your customer’s desires, needs, and behaviours, you can tailor messaging and communication that applies to them and keeps them engaged.
With more knowledge, companies are even developing niche campaigns that cater directly to customers’ demands, maximising the potential of lead conversions and customer loyalty.
With increased pressure to comply with privacy laws, companies know they cannot rely solely on buying customer data from 3rd-parties. Collecting data themselves, and through their own channels solves this issue and gives them an advantage in the field.
Not only is first-party data more ethical and accurate, it serves to develop impactful marketing that benefits the organisation at large. Let’s all take a tip or two from Don Draper and invest our efforts into first-party data collection.
It is absolutely worth it.