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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.

Less than 10% of companies have a 360-degree view of their customers, and only 5% use it to systematically grow their business.

Source: Gartner

A Quick Data Primer

Zero-party Data

Data the customer provides proactively and deliberately.
It includes:

  • Preference data
  • Purchase intentions
  • Personal context
  • How the individual wants to be recognized by your brand
First-party Data

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:

  • Company website
  • Ecommerce site
  • Mobile app
  • CRM
  • Social media pages
  • Surveys
Second-party Data

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.

Third-party Data

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:

  • User interests
  • Patterns of browsing activities
  • Hobbies or preferences

Poor Data Quality Is Costly

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

Source: Forrester

Why the urgency around first-party data?

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.

Stricter privacy laws & regulations

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.

Third-party cookies phase out

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.

Customer expectations have changed

Customers are demanding personalized experiences. They want to be marketed to as an individual, not part of a segment based on age or demographics.

Need to own the customer relationship

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.

Benefits of First-party Data

Increased Relevance

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.

Increased Accuracy

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.

The Importance of a Data-led Strategy

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.

Every customer. Every touchpoint. Personalized.

Customers Journey

Without a loyalty initiative, only 20% of new customers will make a second purchase.

Source: Zodiac

How Loyalty Delivers First-party Data and More

Collect First-party Data at Scale

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.

Gain a Unified Customer Profile

Robust first-party data is integrated with purchase, demographic, behavioral, and other data to build a comprehensive view of each customer.

Identify & Reward Your Best Customers

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.

Reduce Churn & Build Lasting Emotional Bonds

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.

Increase Customer Acquisition

Overcome rising acquisition costs and gain new customers more cost-effectively through advocates, referrals, and influencers.

Accelerate Growth without Discounting

Value-based engagement creates repeat customers, which Forbes reports can increase sales by 47%. Loyalty members spend up to 18% more.

Let Annex Cloud Help You Build Price-Proof Relationships

Annex Cloud’s Loyalty Experience Platform™ enables you to create value-based engagement and individualize your customers’ experience to build lasting bonds. Contact us to find out how to sustain growth despite your supply chain challenges.

See Loyalty in Action

Be inspired with endless ways to make every customer interaction rewarding.


We Can Help

Let's explore how loyalty can help you become one of your customers' most beloved brands.


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