First-party data is essential to understanding your customers better than any of your competitors, so you’re the one they come to, and stick with, to get the rich one-to-one experience they demand.
Data the customer provides proactively and deliberately.
Information brands collect directly from customers both online and offline. It's considered the most accurate and reliable, and includes customer information you collect through your:
This is another brand’s first-party data that you use for your own marketing needs. This is used heavily in audience retargeting and optimizing ad. Publishers also use this as a revenue stream when second-party data is sold to brands.
This consists of behavioral or demographic data aggregated from many varying sources collected by an entity that doesn’t have a direct relationship with consumers. This includes:
21% estimated waste on every media dollar spent
32% of Marketing Team’s time spent on managing quality
26% decrease in campaign performance
$16.5M average annual loss for enterprises
For some brands, ecommerce accounts for 20 percent or less of their total sales, leaving them with no direct relationship and incomplete or stale information about their end customers.
Starting with GDPR in Europe and CCPA and CPRA in California, brands face more stringent consumer privacy laws to make sure you don’t use a customer’s data without their consent and keep their information safe.
Google announced that by 2022 they will be phasing out support for third-party cookies in Chrome. This creates a significant impact on brands that rely on third-party data for marketing and sales.
Customers are demanding personalized experiences. They want to be marketed to as an individual, not part of a segment based on age or demographics.
Brands need to own the data rather than purchase it from data aggregators to deliver the experiences customers demand. This provides full control over marketing strategies across all customer touchpoints.
Since first-party data comes directly from the customer, product recommendations, marketing messages, promotions, and offers are more relevant based on the behaviors, preferences, and interests they share.
First-party data takes the guesswork out of determining who your customer is and allows you to understand exactly what they like, prefer, and value.
Collecting first-party data directly from customers enables you to own and better manage the relationship across the entire customer journey.
Collecting first-party data is critical but equally important is being able to act on it in real time to deliver the timely, relevant one-to-one relationships customers expect. According to Forrester research, nearly 48 percent of companies are data-driven, meaning they make decisions first, then try to find data to back up those decisions. Only 11 percent of companies use data to drive decisions. Loyalty enables a data-led strategy to elevate every touchpoint across the entire customer journey.
Loyalty creates a mutual value exchange. Customers willingly share their personal information in exchange for personalized, unique experiences based on their preferences, behaviors, and lifestyle.
Robust first-party data is integrated with purchase, demographic, behavioral, and other data to build a comprehensive view of each customer.
First-party loyalty data enables you to know who your best customers are and uniquely reward them. KPMG reports that mature brands gain more then 85% of their growth from their most loyal customers.
Deliver benefits customers can’t find anywhere else, like exclusivity and early access. Emotionally engaged consumers spend more, buy more often, and promote your brand more.
Value-based engagement creates repeat customers, which Forbes reports can increase sales by 47%. Loyalty members spend up to 18% more.