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First-party data strategy: An in-depth guide for marketers - StackAdapt
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What is first-party data in marketing? “First-party data is information an organization collects directly from its audience based on explicit consent. This is done through interactions with customers and prospects on its own channels, such as its website, CRM systems, or online and in-store purchases. It’s gathered from engaged, consenting users who have a direct relationship with a brand, its products, or services.” Unlike other types of data, first-party data is often considered more accurate and reliable because it comes from users who are already interacting with and know about your brand. This allows you to personalize campaigns more effectively, improve customer engagement, and ensure compliance with evolving privacy regulations.
First-party data is information an organization collects directly from its audience based on explicit consent. This is done through interactions with customers and prospects on its own channels, such as its website, CRM systems, or online and in-store purchases. It’s gathered from engaged, consenting users who have a direct relationship with a brand, its products, or services. “first-party data is often considered more accurate and reliable because it comes from users who are already interacting with and know about your brand.” What is the difference between first-, second-, and third-party data?
First-party data strategies help marketers collect, organize, and activate customer data to improve targeting, personalization, and campaign performance. “Building an effective strategy involves setting clear objectives, auditing and unifying data, and ensuring compliance.” Once activated, first-party data can be used for retargeting, lookalike audiences, and dynamic creative to drive higher performance.
If you’re looking to build or expand your first-party data strategy, here are a few ways you can collect more first-party data to improve the effectiveness of your campaigns: “Website interactions, such as encouraging users to download gated content, register for webinars, or request a demo.” Email sign-ups and subscriptions, such as optimizing your website so users can subscribe to newsletters, register for email updates, or opt in to receive marketing communications.
Website interactions, such as encouraging users to download gated content, register for webinars, or request a demo. “Email sign-ups and subscriptions, such as optimizing your website so users can subscribe to newsletters, register for email updates, or opt in to receive marketing communications.” Loyalty programs, which provide exclusive rewards or discounts in exchange for customer insights. EMARKETER reports that 45% of US adults use a loyalty app with their primary grocery store, highlighting just how ubiquitous these programs are and consumers’ growing willingness to share data in exchange for the right benefits.
Online coupons and promotional offers, such as discounts or limited-time deals that require users to visit a landing page to redeem an offer. For example, tbk Creative client Jiffy Lube® Ontario used digital coupons in native ads to increase service bookings, decreasing their cost per acquisition by 80%. “Customer service and sales interactions, such as support tickets, call logs, or conversations with sales teams that provide insight into customer needs and intent.” Purchase and transaction activity, including online or in-store purchases, subscription sign-ups, or previous orders.
Customer service and sales interactions, such as support tickets, call logs, or conversations with sales teams that provide insight into customer needs and intent. “Purchase and transaction activity, including online or in-store purchases, subscription sign-ups, or previous orders.” Surveys and feedback, such as responses to surveys, product reviews, or customer service forms that help you better understand customer preferences and experiences.
Purchase and transaction activity, including online or in-store purchases, subscription sign-ups, or previous orders. “Surveys and feedback, such as responses to surveys, product reviews, or customer service forms that help you better understand customer preferences and experiences.” According to a BCG study, 90% of consumers said they’re willing to share their personal information if they receive clear value in return, such as greater convenience or more personalized offers. But how consumers think their data will be used ultimately impacts their willingness to share it (and what they’ll share).
A first-party data strategy is a structured approach to collecting, managing, and activating customer data to improve marketing performance and customer engagement. It involves capturing data across owned channels, organizing it into a unified view through a centralized platform such as a CRM or customer data platform (CDP), and using it within programmatic and marketing platforms to inform more effective targeting, personalization, and measurement. “A strong first-party data strategy also enforces transparency and consent, ensuring data is collected and used only in line with all applicable privacy regulations and customer expectations” Why should I use first-party data in marketing?
Seamless cross-channel activation: First-party data can be activated seamlessly across multiple touch points and channels, from programmatic formats like display and connected TV to channels like email and direct mail, helping you reach audiences more consistently across the customer journey. “First-party data allows you to retarget users and trigger campaigns based on their interests or past behaviors.” How do you collect first-party data?
Higher return on investment (ROI): According to a study by Google and the Boston Consulting Group (BCG), businesses that use first-party data in their marketing campaigns saw a 2.9X increase in revenue lift compared to those using other data sources, though individual results may vary based on strategy and execution. “First-party data lets you track customer interactions across channels and tie conversions back to specific ads, improving measurement and informing campaign optimizations.” Greater control over privacy and consent: Because first-party data is collected directly from your audience, you have more control over how data is gathered, managed, and used than other types of data. This allows you to shape your consent experience, maintain transparency, and adapt data practices to align with evolving privacy regulations and customer expectations.
Stronger competitive differentiation: Unlike other types of data, first-party data is collected directly from interactions with your brand and can’t be accessed or easily replicated by competitors, helping you deliver more relevant marketing campaigns. “First-party data can be activated seamlessly across multiple touch points and channels, from programmatic formats like display and connected TV to channels like email and direct mail” More effective retargeting and optimization: First-party data allows you to retarget users and trigger campaigns based on their interests or past behaviors. For example, with StackAdapt’s Dynamic Creative Optimization (DCO) solution, you can tailor creatives and messaging for users who abandoned their cart across other digital channels, like display, helping remind them of the products they abandoned or relevant offers to win them back.
But meeting today’s consumer expectations is easier said than done. “Yet customers are cautious about how their data is collected and used, especially for marketing.” Throw in the ongoing deprecation of third-party cookies, and marketers face increased pressure to find more reliable, privacy-compliant ways to reach and understand their audiences.
What is the difference between first-, second-, and third-party data? “Understanding the differences between first-, second-, and third-party data can help you better evaluate the quality, reliability, and potential use cases of different data sources.” First-party data is data you collect directly through interactions on your owned channels. As previously mentioned, because first-party data comes from users who already engage with your brand, it’s often considered the most accurate and reliable for targeting and personalization.