• June 13, 2021

Why are First-Party Data so important?

Why are First-Party Data so important?

Why are First-Party Data so important? 800 481 DataLit

written by Maurizio Crisanti

In the digital age, First-Party Data are a valuable element for companies. Through these data, CEOs and marketing directors can find essential information to guide corporate choices as well as communication and promotion campaigns for products and services.

First-Party Data Definition

What are First-Party Data? First-Party Data consist in information that companies collect from their sources. Basically, this is all the information about customers and their behaviors from online and offline sources, such as the website, app, e-commerce, CRM, social media or company surveys. Actually, the CRM contains not only the elements collected by digital tools, but also data collected offline, during trade fairs, campaigns carried out with promoters in physical places, business cards, lists acquired on Excel sheets, invoices and everything related to sales channels and company contacts.

What elements are present in First-Party Data

First-Party Data generally include the following info:

  • demographics
  • websites visited and interactions
  • purchase history
  • interests
  • time spent on the website

 and much more.

Among the most interesting aspects we mention the fact that:

  • First-Party Data can be collected for free. Therefore, they are data collected internally, even without carrying out expensive advertising or lead generation campaigns;
  • the company that owns the data has got all the necessary consents from customers. By considering the GDPR, all this is very important because it allows you to obtain a dataset that meets the requirements and conditions of the Privacy regulations.

How to use First-Party Data

First-Party Data boast great quality since they are completely reliable: through their use it is possible to offer both traditional and potential customers a personalized experience and motivate them to convert, offering them the products they need. In some fields, including publishing, First-Party Data are very useful. It is indeed possible to give value to the data collected to reach users with personalized content and offers of pay-plans, and therefore monetize the data collected by the company.

Here are the advantages of using First-Party Data:

  1. Creating customized experiences

The collection of First-Party Data helps know users, their needs and the subdivision into specific groups, by means of segmentation. It is possible to analyze the web traffic of the site and create audiences in search of specific products, with a shared passion, hobby or sport, for example. Once the target has been identified, highly personalized messages can be created and the effectiveness of marketing campaigns can be increased by customizing the offers. First-Party Data are also very useful for improving the ROI of personalized ads and programmatic advertising campaigns.

  1. Getting information on audience and customers

The collection of First-Party Data offers the possibility to collect data and save them in the CRM, but also to deepen the profiles of customers and users interested in the brand and its products. By Using DMPs – an acronym for Data Management Platforms – it is possible to integrate data from various sources, thus obtaining a complete view of customers regarding what they appreciate most, which products they are most willing to buy, the abandonments of pages, shopping carts and e-commerce, and much more.

  1. Complying with the GDPR

As already mentioned, First-Party Data are of value as they are collected directly by the controller with all necessary consents. This aspect is certainly appreciated by customers: they indeed know they have already given their consent to be reached by messages and announcements, as they know the company and are interested in its products.

The importance of First-Party Data: the matter of cookies

We know that the most used browsers, such as Chrome, allow data to be collected through cookies. The news is that both Chrome and Safari, like many other browsers, will no longer support Third-Party Cookies – which make up the basis of Digital Advertising – in a few months. This is a real revolution in digital marketing, currently oriented towards getting to know the habits of web users by tracking their behavior through cookies. The managers of the most well-known browsers do that for reasons related to privacy, with troublesome effects for digital advertising on the most used platforms for paid ads: Google and Facebook, for instance.

But there is good news: this browser evolution will not involve First-Party Data. For this reason, companies will have to think how to collect, integrate, analyze and activate (even very quickly) First-Party Data.

First-Party Data and Publishing

In the publishing sector, First-Party Data will allow customized browsing, to recognize users and, consequently, show them interesting content according to their tastes. They will allow you to create content adhering to the interests of readers and to get more information on the advertising sector. As long as you know how to manage First-Party Data.

How to establish strategies

Which data shall be collected on the basis of preset objectives: the first step will be precisely to establish a data strategy, for a more relevant experience for both new and loyal users.

Then, data are collected through sources and touch points: from the website, from mobile apps, smart speakers, newsletters, etc. All in the name of transparency and two-way exchange: users voluntarily provide the data, in exchange for an experience which is more relevant to their interests.

Data collecting is not enough, since it is necessary to analyze and activate the data, by equipping ourselves with the right tools. Once a single repository of the raw data collected has been created – a centralized data lake – augmented analytics and machine learning solutions will be needed to “unleash” their potential.