This quote from Campaign says it simply: “To put it simply, big tech firms won’t track users around the internet for us any more. We must take responsibility for our own first-party data collection”
As a business owner if you aren’t familiar with your data then you are certainly missing out on opportunities to grow your business revenue, build loyalty and beating the competition. Before we delve into the complexities of data analytics for businesses, let's start with the basics
Why does your business need a first party data strategy?
As consumers become increasingly aware of how much of their personal data is being collected and how brands are using it, brands will need to justify how they collect and use data and how ‘intrusive’ their use of data is. With this pressure, access to second-party and third-party data will become increasingly harder to come by, which will result in first-party data becoming more valuable.
According to Forbes, “First-party data is more accurate, provides better insights, has higher conversion rates and is a priority for maintaining customer relationships”
What is changing and how does it impact your business?
We have delved into the upcoming changes in more detail here but in summary
Apple’s iOS will soon allow users to disable tracking between applications
Chrome is on its way to blocking third-party cookies,
California’s new rules around privacy regulation are likely to be followed by other jurisdictions globally
The fundamental pillars of tracking and retargeting are going to be impacted. Your business will have a reduced ability to attribute conversions, bid for ad space and target or retarget the right audiences
Types of data
Let's step back a moment and consider what data really is to a business. Data falls into three categories - first, second and third party data
First-party data is the information your business gathers directly from your customers
For example, orders, revenue, reviews, loyalty, email addresses and mobile phone numbers
Customers have consented to share this information with y
Second-party data is someone else's first-party that is shared with you via a commercial agreement
For example you may sell baby products and you reach an agreement with childcare provider to share your customer data in an anonymous and privacy-compliant way
Third-party data is data you can acquire from other sources
Cookies, pixels and other forms of activity tracking
How you can use first party data to grow your business
First party data can be commercialised
First party data helps build relationships
First party data helps drive loyalty
First party data is compliant with privacy rules and legislation
A solid first party data strategy is an ongoing process and we strongly recommend that you engage an expert to guide you through the journey. There are three key steps to consider:
Enhance data: Collect relevant data that is clean, systematic and accessible
Build Trust: Collect data transparently and ethically and use it to provide meaningful experiences for your customers both current and potential
Leverage Insights: Build an open and accessible platform to generate and share insights, identify opportunities and capitalize on trends