Billions of internet users generate thousands of gigabytes of information every second. In today’s world, data has become increasingly important for general business intelligence, as well as marketing strategy. Never before have we had access to such vast amounts of data, which is why it’s important to understand the different types and their various use cases.
First-party data has grown in popularity as businesses look to gain greater customer insights. And with the recent announcements from Google, most companies are looking to move away from relying on third-party IDs for targeting and measurement. That is why organizations of all sizes need to understand how to optimize data.
What is First Party Data and Why Do I Need to Pay Attention to It?
First-party data is the information companies can collect from their own customers and consumers. This data can come from both online and offline sources like their website, app, CRM social media, surveys and customer feedback.
According to eMarketer, 85% of US marketers and 75% of respondents in Western Europe said that increasing their use of first-party data is a high priority. For marketers, it is a really valuable source of user’s data.
First-party data is one of the most valuable data, and every company should consider collecting the data and making profits from it. The information collected can help to segment the data, deliver customers personalized experience, display relevant ads and details, and help you deliver incredible ROI to your organization’s bottom-line. Some of the types of first-party data collected include powerful information like:
- Visited website pages and interactions
- Purchase history
- Time spent on website
- And many more.
How to Use First-Party Data
Basically, by using first party data you can deliver customers a personalized experience and send them messages they can act upon to drive revenues. In addition, you can collect all of this high-quality data and rest-assured that you are in compliance with stringent privacy rules. Let’s take a look at three benefits of using first-party data.
- Create personalized experience
Gathering first-party data makes it easy to know your users and divide them into specific groups. You can analyze your web traffic and create audiences who are looking for specific products or are interested in a particular topic, such as health products or gifts. It enables you to create highly personalized messages, ads, emails and more that increase the effectiveness of your marketing efforts.
- Comply with industry regulations like GDPR.
First-party data can be fully leveraged because you own it and you are responsible for collecting all necessary consents. Users typically will agree to process their data by your company because it is usually necessary for making a purchase. In the age of GDPR, it is extremely important to collect data legally and first-data is one of the most trusted and valuable users’ data.
- Get insights about your audience.
Collecting first party data gives you a chance not only to store data but also to look deeply into your users’ profiles. You can then integrate data about your users from various sources (website, surveys, apps, etc.) to create a full view of your customers. What he or she likes/dislikes? Which products do your users want to buy? Which websites do they visit after leaving your page?
- Create custom segments.
From your own data, you can create audiences perfectly tailored to your needs. You can reach users who visit your product websites, buy the most often or spend a lot on buying your top products. First party data allows you to create all segments that you can imagine, so consider what types of audiences will be crucial for expanding your business and then – build them.
First-party data is the best of the best to use, because it’s collected from the people you have the most to learn from – your own audience. That makes the data as reliable as possible for making predictions and forecasting future behavioral trends.
Find out how Fulcrum can help you take your data to new heights.