Doubling down on data:  How to successfully leverage first-party data marketing

Digital marketers have been happily caught with their hands in the (third-party) cookie jar to measure performance, build customer profiles, track journeys, focus advertising, and personalize audience experiences, effectively placing data at the very core of any successful marketing strategy.  

For the last few years, Google has been considering and planning to phase out third-party cookies. In a July 22 news update on their Privacy Sandbox website, Google announced it would abandon this plan in favor of introducing a new experience in Chrome that lets people opt into data collection, a choice they’d be able to adjust at any time.

But this heavy reliance on third-party data (85% of marketers rely on third-party cookies to some degree according to HubSpot) made many marketers think, and 54% are already exploring alternatives. And it turns out the alternatives outperform third-party data.

We at Kaltura highly recommend prioritizing first-party data for its higher quality and trustworthiness, and its promise of better-focused and more impactful marketing campaigns. To learn more, read on!

It’s the way the cookie crumbles… 

Of course, curbing the use of third-party cookies and online activity tracking over personal privacy concerns is nothing new to marketers. European lawmakers were most prominent in protecting personal information and data with the introduction of the General Data Protection Regulation (GDPR), back in May 2018, demanding marketers implement cookie consent dialogs on their pages and comply with a set of data processing and storage rules.  

These regulations didn’t block the use of third-party cookies but rather created transparency for the end user and bound businesses to responsible use of personal information. Blocking third-party cookies by default came two years later, spearheaded by browsers like Firefox and Safari. Google first responded by introducing the incognito tab to offer the user a cookieless browsing option and today they are working on an alternative browsing experience with Privacy Sandbox. 

Funnily enough, 13% of consumers state they would miss how cookies create a better online experience for them. McKinsey research confirms that 70% of consumers now expect brands to personalize their marketing output, and 76% get frustrated when this doesn’t happen. 

Before you can personalize your customer’s experience of your brand and campaigns, you first need to know who they are and what their preferences are. First-party data marketing collects personal information directly from your customers, and is, therefore, the most reliable, compared to third-party data. Read on.

The case for first-party data marketing 

So what kind of data is third-party data anyway? And what are the alternatives? Here are a few definitions for you: 

Third-party data is aggregated by entities without direct customer relationships and sold to companies. Third-party data is collected by data brokers from a wide range of sources (even governmental, non-profit, or academic) and can include public demographic data, online behavior, and interests. While it provides extensive reach, it lacks precision and reliability compared to first-party data.  

First-party data is information a company collects directly from its audience through interactions like website visits, purchases, events, and feedback. This data is highly accurate and relevant because it comes directly from customer interactions, ensuring privacy compliance and signaling trust. 

Second-party data is another company’s first-party data shared through partnerships. It offers a broader view of potential customers while maintaining trustworthiness but requires strong business relationships to ensure data quality and relevance. 

There’s also such a thing as zero-party data, which customers intentionally and proactively share with a company. This can include preferences, personal context, and consented insights gathered through surveys, preference centers, and interactive content. Unlike first-party data, which is inferred from behavior, zero-party data is explicitly provided by the customer, making it highly accurate and valuable for personalized marketing efforts. However, zero-party data is much more resource-intensive to collect and more limited in quantity making it less effective as a main or sole data source.  

While third-party data might be easiest to come by, incurring only a purchase, it’s not the best quality data marketers can use. Moreover, it comprises data that is generic, unverifiable, and that everyone has access to, including your competitors. Third-party data can offer you an educated guess at best about your audience’s needs and preferences. First-party data, on the other hand, is directly collected from those that matter most –your own audiences.  

So, how should marketers best go about collecting their own data? Coming up. 

First-party data marketing: 5 strategies 

First-party data will come from your content, your assets, and your interactions with your audiences and customer base. The secret lies in identifying data collection opportunities and implementing user-friendly collection mechanisms. Let’s start strong with the most effective strategy:  

Digital experiences 

Webinars and virtual events offer an excellent opportunity to capture valuable first-party data. Conrad Mills, Principle Analyst at Forrester, stated that “Events are arguably one of your best sources of zero and first-party data. […] 95% of B2B buyers say they’d be happy to submit personal data when registering for an event.” During these events, marketers can collect detailed information about attendees during registration, such as contact details and professional backgrounds. Interactive polls, reactions and Q&A sessions during the event can engage the audience and gather real-time insights and engagement data. Additionally, sending follow-up surveys and feedback forms post-event helps capture further feedback and data, enriching the marketer’s database. 

What’s more, digital experiences can encapsulate other data collection strategies (like content marketing, email marketing, social media engagement, and customer surveys, described hereunder) to create one holistic journey that collects data at the various touch points of the digital experience. You can then use that data to further personalize your digital experiences, which in turn will enable you to glean more data. This cyclic approach can potentially generate powerful marketing momentum. 

Website content and downloadable assets 

By offering e-books and whitepapers through gated content strategies (or non-gated, depending on the kind of data you want to obtain), marketers can collect user information in exchange for access to valuable content. Downloadable resources also serve as a means to gather data. Blogs and articles play a significant role in this strategy as well. Comment sections and engagement tracking on blog posts allow marketers to monitor and analyze user interactions. Encouraging newsletter subscriptions is another way to gather email addresses and maintain regular communication with the audience. 

Email marketing 

Email marketing campaigns, particularly opt-in campaigns, are essential for building segmented email lists. These lists can reflect user preferences and behaviors, allowing for more targeted marketing efforts. Personalized email journeys nurture leads and collect data on engagement, ensuring that the delivered content is relevant and valuable to the recipients. 

Social media engagement 

Social media platforms provide a wealth of opportunities for gathering first-party data. Social shares, likes, and comments enable marketers to gather feedback and opinions from the audience. Additionally, running contests and giveaways on social media requires participants to provide information, further enriching the data collected. 

Loyalty programs and customer surveys 

Loyalty programs and customer surveys are effective in collecting detailed customer preferences. Membership programs can reward customer loyalty and incentivize customers to share their preferences. Feedback mechanisms such as post-purchase surveys can capture customer experiences and satisfaction levels. Net Promoter Score (NPS) surveys can be used to measure customer loyalty and identify areas for improvement, providing valuable insights for marketers to enhance their strategies. 

By implementing these five strategies, you will be able to generate first-party data, which in turn will help you create a more personalized and effective approach to your marketing efforts. It’s also important to keep your data up to date and “real-time”, as customer opinions, preferences, and needs can change over time.  

Once you acquired all this fresh, high-quality data, here’s how you can make the most of it. 

Leveraging first-party data marketing for business success 

Leveraging first-party data marketing involves transforming raw information into actionable insights that enhance personalization, lead generation, and customer analytics. If done well, first-party data-based personalization and optimization will then enable more engaging campaigns that will in turn deliver more first-party data, in what you could call a true momentum marketing machine. 

Personalization 

One of the most significant advantages of first-party data is its ability to facilitate highly personalized marketing efforts. Since this data is directly obtained from customer interactions, it offers an accurate and comprehensive view of individual preferences and behaviors. Marketers can use this information to create tailored content, product recommendations, and personalized email campaigns that resonate with specific audience segments. This level of customization not only improves customer experience but also drives higher engagement and conversion rates compared to generic marketing approaches that often rely on less precise third-party data. 

Lead generation 

First-party data provides a solid foundation for identifying and nurturing potential customers. By analyzing data collected from various touchpoints, such as website visits, social media interactions, and email responses, you can segment your audience based on interests, behavior, and purchase intent. This segmentation enables targeted campaigns that speak directly to the needs and preferences of different prospect groups. For example, you can send tailored offers and content that encourage engagement and conversion to a potential lead who has shown interest in a specific product category. Compared to third-party data, which might be outdated or less relevant, first-party data ensures that marketing efforts are timely and accurately aligned with the current interests of your audience. 

Customer insights and analytics 

First-party data also plays a crucial role in enhancing customer insights and analytics. With direct access to data on customer interactions and feedback, you can gain a deeper understanding of customer journeys and pain points. This insight enables delivering the highest degree of customer service and the opportune upsell, the optimization of marketing strategies and the improvement of products and services. Advanced analytics tools can further process first-party data to uncover trends, predict future behaviors, and measure the effectiveness of marketing campaigns. These insights can help predict churn, make informed decisions, allocate resources more efficiently, and adapt strategies to meet evolving customer demands. Compared to third-party data, first-party data provides a clear and detailed picture of your customers’ behavior, leading to more accurate and actionable insights. 

Conclusion 

Overall, strategic first-party data marketing empowers you to deliver personalized experiences, effectively generate and nurture leads, and derive valuable customer insights. By prioritizing first-party data over third-party sources, businesses can ensure their marketing efforts are not only more effective but also aligned with contemporary privacy standards and customer expectations. 

In addition to the strategic benefits, leveraging first-party data marketing helps businesses build trust and strengthen customer relationships. By relying on first-party data, companies can demonstrate their commitment to transparency and data privacy, as this data is collected with the explicit consent of the customers. This trust fosters long-term customer loyalty and enhances the overall brand reputation, setting a solid foundation for sustainable marketing success.