In today’s world, companies need to understand their customers better to succeed. One important way to do this is by using something called “1st-party data.” This is information that companies collect directly from their customers, like when they make a purchase or sign up for a newsletter.
Why is 1st-party data so important? It helps companies learn what their customers like, what they need, and how they behave. This information is very valuable because it is accurate and specific to each customer.
In this blog, we will talk about why 1st-party data is crucial for businesses. We will also explore some simple and natural ways to gather this data without using complicated methods. By using these techniques, businesses can improve their products and services, making sure they meet their customers’ needs better.
1. Why First-Party Data is the Future
With the rise of Google, Facebook, Amazon, and OTT, marketing is getting more digital, it is getting better with it being more measured and targeted, but at the same time, it is getting more expensive.
The latest development on using website cookies is that many web browsers, such as Chrome and Firefox, are phasing out third-party cookies. This means that websites will no longer be able to track users across different websites using third-party cookies. As a result, brands are moving to first-party data, which is data that they collect directly from their customers. This data can be collected through a variety of methods, such as website forms, surveys, and customer feedback.
There are several benefits to using first-party data. First, it is more reliable and accurate than third-party data, as it is collected directly from the customer. Second, it is more compliant with privacy regulations, as brands have more control over how it is collected and used. Third, it can create more personalized marketing campaigns, as brands can use it to understand their customers’ individual needs and preferences.
First-party data is data that brands collect directly from your customers and audiences through interactions with them through site visits or app downloads. First-party data is where we can mainly reach customers via phone numbers and email addresses.
While, we spend a lot of time and money on these 3rd party platforms, marketing on our own database has always proven to be 5-10x more efficient with strong use of #martech tools.
2. Difference Between First, Second and Third Party Data
3. Sharing our Top 10 learnings from unlocking value from First Party data
- Building 1st party data takes patience and time and cannot be built overnight. Requires strong product mindset and collaboration with tech.
- While customer identity (phone number or email) is the primary information to be captured, demographics and preferences with permission are equally important.
- Customers will drop off during the process unless there is strong WIIFM (What’s In It For Me)
- While most focus on capturing information of the final buyers, 20x + Opportunity is ignored by people who browsed but didn’t buy.
- New ways of building 1st party data have emerged with the use of Click to WhatsApp Ads on Instagram.
- With the emergence of WhatsApp as a strong CRM channel, communication is moving from Messaging to Conversion.
- Death of Email and SMS channels is over-discussed but they still provide good relevance and are not to be ignored.
- Putting 1st party database to use requires strong Data Engineering or CDP to organize the customer information and can be a daunting task.
- Superior Analytics on this data is key to unlocking value to target the right customers at the right time with the right offer. Also if done well, can help in the journey to Attribution.
- And finally, nothing can beat a Strong copy with the element of Creativity and personalization which does the final magic.
Do let us know How you and your Brand are leveraging the First Party Data in the comments Section.
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