To offer something to your customers, you first need to get to know them. You must know everything about them to propose your products or services to the right people. That’s why you should collect First-Party data. What are these data? Here’s everything you need to know.
First-Party Data – What Is It?
First-Party Data refers to information collected directly from your users or customers. They are considered the most reliable and valuable source of information about the behaviors, preferences, and needs of your target audience. Unlike Third-Party or Second-Party data, First-Party data belongs to your company, and you don’t have to share it with other entities. First-Party data can come from various channels, such as a website, mobile application, registration form, newsletter, social media, survey, or phone conversation. They may include information such as:
- Demographic data: e.g., age, gender, location, education, devices used by your audience.
- Behavioral data: e.g., browsing history, purchases, interactions, conversions.
- Psychographic data: e.g., interests, opinions, values, preferences.
- Transactional data: cart, order, payment, preferred payment method, or delivery method.
These data can be collected and analyzed using statistical tools like Google Analytics or Google Search Console. Competivo can assist you by auditing the data you’ve gathered and creating a marketing strategy, for example.
Why Collect First-Party Data?
First-Party Data offers numerous advantages for your business. It allows you to better understand your users or customers and tailor your offerings, communication, and marketing efforts to them. With First-Party Data, you can create personalized and effective marketing and advertising campaigns. Collecting First-Party Data also contributes to improving SEO results and increasing traffic to your website, store, or social media. Relevant materials and communication methods tailored to the target audience, thanks to First-Party Data, can enhance user or customer engagement and loyalty towards you and your company. Moreover, well-targeted ads based on First-Party data enable cost optimization and increase return on investment (ROI).
Effectively Utilizing First-Party Data
Effective use of First-Party Data is crucial for achieving the desired results. Therefore, when collecting, analyzing, and utilizing data, it’s essential to keep a few key points in mind. Firstly, only collect data that is necessary and relevant to your goal. Secondly, remember to adhere to data protection principles and obtain consent from users or customers for data processing. For this purpose, it’s best to include a checkbox on your website where users can choose whether to agree to data processing.
Additionally, when presenting any form or email address entry, inform the recipient that by providing their data, they agree to its processing. Do not forget about the GDPR clause and a Privacy Policy formulated in accordance with the law. Furthermore, maintain the quality and accuracy of data, removing those that are no longer needed or have become outdated. Analyze the collected data and draw conclusions that will help you make better business decisions.
First-Party Data vs. Second- and Third-Party Data
Finally, it’s important to be aware of the differences between First-Party, Second-Party, and Third-Party data. Second-Party Data is acquired through collaboration with trusted partners. The significance lies in establishing partnerships with entities that possess data relevant to your business. On the other hand, Third-Party data requires financial investment. These are external data that open up an entirely new spectrum of information acquisition from extensive user databases, i.e., from various sources, such as thematically related websites.
