Why is First-Party Data Important for My Business?

Written By J Miller Marketing

What is first-party data?

First-party data is information collected directly from the customer. This data can be found from places like websites, surveys, customer feedback, or in-person. For instance, if you ask a customer their name, phone number, and email at the cash register this is known as first-party data.

Why is first-party data important?

First-party data is the most reliable data you will have on hand and is completely free. Once you retrieve first-party data from your customers this will help you target them for your ads - so you will want to get their information in hopes the same customer will come back to your store. This information will also help you gain audience insights, create personal experiences for users, improve retargeting strategy, identify patterns, and predict future trends.

The power of first-party data

  • Collected and owned by you or the brand

  • The data is more accurate

  • You spend LESS time looking for data from external sources

  • Highest return on investment of any data type as its 100% FREE

  • Useful for short-term action and long-term benchmarking

  • Two-thirds of marketers believe first-party data provides the best path to understanding your customers and leads to better performance

In short, while third-party cookies have long been a staple for digital media advertising; consumers are starting to take privacy more seriously.  Last January, Google announced plans to ban 3rd-party cookies on Chrome originally set for this year but now pushed to 2023.  In April, Apple pushed an update that opted users out of ad-tracking by default.  So, focusing on first-party data not only allows you to be more accurate with your targeting but also leads to better performance overall of your advertising campaigns.

 
J Miller Marketing
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