The death of the cookie will put first party data centre-stage for companies selling online. Alexia Pringiers outlines what this will mean for customer knowledge and insights
With the collection of third party data on the outs, companies selling online are looking more closely at the first party customer data they collect themselves.
First party data is collected through direct interaction with customers on your owned channels.
It involves a simple direct transaction between your company and your customers, such as the actions your customers take on your website or your social media interactions with them.
Benefits of first party data
Increased trust and transparency
Compliance with privacy laws benefits a company and its customers. First party data is information that users and customers directly share. Businesses, therefore, need to be transparent about the purposes of the data collection and always ask for customer approval.
More accurate and higher-quality data
Direct customer data collection enables businesses to maintain accurate and current data.
Through interactive experiences, businesses will collect information that can provide them with more precise information about its customers, allowing them to create tailored and personalised experiences.
Effective marketing campaigns
The first party data businesses gather enables them to produce timely and dynamic content and maintain user engagement through specialised experiences.
In short, first party data helps customer-centric companies gain a competitive advantage by providing more personalised experiences.
Retention of loyal customers
More accurate data enables you to segment your audience better and nurture each group per the specifics of their customer profile.
You may enhance contextual targeting by gathering more first party data and building audiences based on behavioural data.
Reduced costs compared to third-party data
Investing in first party data collection, archiving, and processing solutions will cost less than paying for third party data, which is less accurate and trustworthy than data you obtain directly from your customers.
Additionally, using first party data increases return on investment by enabling more individualised experiences that are more likely to result in sales.
Overcoming first party data challenges
There are, however, some challenges that need to be dealt with when you are relying on first party data.
The need for strategy
It is essential to set clear and precise objectives before gathering information; otherwise, you run the risk of wasting away team resources gathering information that isn’t relevant.
Take the time to consider the best questions to ask your customers and what you want to do with their answers.
An identity crisis
Your customers use a variety of different channels to interact with your brand. The more extensive and varied your online presence becomes, the harder it gets to consolidate information into one clear customer profile.
Identify touchpoints that will help merge activity across platforms to give your customers a hassle-free experience and consolidate the data the business needs in one place.
Cross-platform integration
Even with a robust data marketing strategy, you’re still likely to rely on information found with third parties.
Look carefully at what tools you’re using to pull data together and how much control they give you over details which are yours by right. Don’t be afraid to eliminate a tool if it’s impacting your overall result.
Alexia Pringiers is Digital Consultant at BDO Eaton Square
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