30-second summary:
- Third-party data is being phased out by big tech, making first-party data indispensable
- First-party data is willingly provided by users, helping you build a consumer profile
- Internet users are cautious about providing their data but will do if rewarded
- Tracking pixels, CRM platforms, surveys, and encouraging interaction and registrations are all effective ways to capture first-party data
- First-party data must be used responsibly, repaying the trust placed in a business by consumers
When doing business online, data is arguably the greatest currency of all. By obtaining reliable data about your target audience, an effective and bespoke marketing plan can be devised. This will convince customers that you understand their unique needs, desires, and pain points.
Alas, not all data is created equal. As the influence of the internet grows, and the fallout of the Cambridge Analytica scandal[1] continues to reverberate, consumer privacy is more important than ever. Any online business needs to build a consumer profile in an ethical, reliable manner. This makes the collection of first-party data critical.
What is first-party data?
First-party data is consumer information collated directly by your business, based on user behavior. This data can be used to build a profile of your target audience, tailoring your marketing and user experience[2] accordingly.
What is the difference between first-party, second-party, and third-party data?
As discussed, first-party data is user information collated directly from your website. We will discuss how you can obtain first-party data shortly. Let’s clarify the difference between this approach and second- or third-party data, though.
Second-party data is essentially the first-party data collated by another business. This may be shared between two websites for an agreed common good. However, second-party data remains private. It will not be made available to