Today we are going to learn about first party data , and the importance of knowing the potential of each of the existing data.
Let’s learn more about this type of data collected directly by brands and companies.
What is first party data?
First party data is any information collected directly from your audience or customer base. Using first-party data has many advantages and is valuable.
First party data provides the best information about your audience, allowing you to create a personalized experience for each user, improve your retargeting strategy for better performance, and predict future trends.
First party data is superior to other forms of customer data for several reasons. First of all, you have collected them, so it is the most reliable data you can have.
Secondly, first party data is the most profitable, since it can be collected for free. Finally, there are very few privacy issues associated with collecting this data: You know where the data comes from, whether you are authorized to use it, and you own the data.
Advantages of using first party data
These are some of the benefits of using first party data:
You collect data following regulations
You can use first party data without too much risk, because you know where it comes from and how it was collected. First party data guarantees that your collection processes comply with regulations. You can also try using third-party platforms to collect information about customers.
You get quality data
First-party data comes directly from your customers and audiences. Therefore, they are exact and precise. First party data, on the other hand, is collected from multiple platforms and then combined into a larger data set.
Greater data accuracy
Source data is usually very accurate because it is collected directly from the source. By minimizing the distance between your company and the data source, the possibility of error or distortion is reduced.
First party data is very relevant to your organization because it comes directly from your audience. This provides you with valuable information about the behavior of your customers and prospects on your site, allowing you to better determine their preferences.
First party data is very profitable, since this data is already in your systems, you just have to use it. They are free to collect because they are your property.
How is first party data collected?
There are many ways to collect first party data. Here are some of them:
- Website pixels: You can collect data by adding pixels to your website, products, or social media profiles to collect information about consumer behavior and actions.
Every time a visitor comes to your website, engages with your social media posts, or views your products and services, you can collect and analyze this data to make business decisions.
- CRM : CRMs collect data through direct interactions between customers and your brand and store it for future use. These interactions can be tracked via email, phone, social media, website, or chat. The CRM collects data such as contact information (name, email, position), purchase history, etc.
- Data management platform : This collects first-party data from various sources and segments it based on specific behaviors such as downloads, clicks, purchases, interests or demographic information. They typically collect and classify anonymous data from multiple sources, such as cookies, IP addresses, and device identifiers, helping marketers target their ads to the right audience segments.
Examples of first party data
Now you know what first party data is, now we share some examples:
- Behavioral Data – With website tags, you can automatically collect data about how users interact on your website (clicks, visits, purchases, etc.).
- Subscription data : You can analyze who subscribes to your content to better understand the type of people who are interested in your business and your content.
- Social media data : You can analyze who follows you on social media by looking at how people interact with your posts (likes, shares, and comments). By evaluating your audience’s social profiles, you will also be able to better understand your audience’s interests, behaviors, and preferences.
- In-store purchase data : By combining in-store purchase data with online sales data, you get a complete view of customer purchasing behavior. This data can show which products are the most popular and which types of customers prefer which products.
- Cross-platform data : You can analyze behavioral data when users move from one platform to another (for example, native app, mobile site, and mobile web page). By taking into account user data from multiple platforms, an overview of user behavior can be obtained.
- Survey data : You can collect data by requesting feedback through email survey forms or other channels. As part of the survey, you can ask questions about your customers’ demographics, their opinions on a product or service, or the type of content they prefer.
- Customer feedback : They can collect first-hand data by analyzing customer feedback, such as those sent directly to your website or those given to customer service over the phone, or those posted on social networks. social networks.
Whether positive or negative, feedback is very important to discover what works and what needs to be improved.
- Customer information stored in your CRM : You can also take advantage of customer information and demographic data that is typically stored in your CRM, such as the number of purchases the customer has made, the number of times they have visited your website, etc
There are many things that your clients should know in order to be able to offer them the right content, in the right channel and at the right time. To better understand your customers and meet their needs, brands need to know who buys what, how much, when and where.
With recent advances in data collection, first party data is emerging as the best data collection method. For this reason, it’s important for consumer brands to know how to create and execute a data strategy.