Key Benefits to First-Party Data
First-party data is created by the website a user visits. Generally speaking, it is the information about the company’s customers that’s collected directly from them. For example, if you visit BBC.com, the New Yorker, and Washington Post – all of these websites will create a cookie (one for each), and these cookies will be saved to your computer.
Companies spend a lot of their revenue on acquiring this data collection and this information helps them better their digital Ad experience. The information being collected may include:
Basic Details: Name, Email address
Purchase Information: Add to Cart, Payments
Demographic Information: Age, Gender, Income Status, Employment
Tracking related information: Downloads, Comments, Websites visited
Since this data is retrieved directly from the user, it is reliable and trustworthy.
The key benefits of adopting first-party data are as follows:
- Data Control: Since the data being collected originates from your domain, it offers better control and ownership.
- Reduces Cost: First-party data collection is the least expensive yet most accurate option. While it may require more time and involvement, it is definitely worth the trouble.
- Accurate, reliable, and relevant: With first-party data, you can be assured that you have accurate, reliable, and relevant information. It allows enhanced tracking of consumer behavior across your website that helps you gather key insights.
Data protection and compliance take precedence: The EU’s General Data Protection Regulation (GDPR) privacy law states that if a company wants to obtain personal data from customers in the EU, it must have their consent and ensure that this data is secured. These provisions were well received as 84% of marketers see the GDPR introduction as a positive measure. With first-party data as a primary resource, there’s no need to be concerned with privacy issues because you know exactly where it comes from, as you own that data.
Build brand credibility and trust: Taking user consent and keeping them looped in on how their information will be used can be a catalyst to building trust. This also plays a crucial role in building brand credibility. Implementing first-party data gives every marketer the unique opportunity to process reliable data that is compliant. Irrespective of your customer’s industry, background, or personal attributes – this medium of data collection establishes trust and loyalty.