Brands have been collecting data to build great customer experiences. Data can be classified into three or four categories. They include first-party data,second-party data,third-party data and zer0- party data. Each kind of data has a varying set of benefits and challenges. But what is first-party data, and what's its importance? Here's all you need to know about first-party data.
What is First-Party Data?
First-party data is data collected directly from your consumers and target audiences through interactions with them. This includes purchase history, demographics, interactions, website activity, interests, mobile app data, and behaviors like clicking on emails or reading articles. You can collect this data through sales of your products and services. In first party data marketing , there are two types, and they include:
- Declarative data-This data is your customer's self-reported data. It includes information such as name, email address, country of origin.
- Behavioral data collected on actions and activities of a visitor to your website. For example, you can get this data through a pixel or cookie on your website to track what the user was doing during browsing. One of the most common tools used to analyze data is google analytics.
Importance of First-Party Data
First-party data is the most valuable and vital kind of data a company owns. This is what makes it important.
Leverages Data to Create Personalized Experiences
In marketing, customer experience is evolving daily, as customers are becoming smarter. Availability of internet connection has given them more access to information to help make purchase decisions. In addition, it also helps them air their expectations about how the companies should treat them.
In first-party data marketing, customers willingly trade their information for relevant, personalized experiences. Access to first-party data offers consumers accurate, admissible data in your hands to build those experiences. As a company, you should ensure the customer experience is good to keep more traffic on your website to enable you to get information and business.
Offers Privacy and Impacts Data Collection
The General Data Protection Regulation(GDPR) has created a high level of customer privacy expectations. Under the law, you have to ask your audience for permission to collect and store their data. In addition, you have to tell them why you want their data and how you will use it. Apart from GDPR law, there's the California Privacy Law(CCPA), and they are similar.
The law affects how and why the companies collect customers' information. Customers now have expectations that companies should respect their data and only share it when consumers believe they have stored it securely and safely. They also need transparency and how you are going to use it. This has led to customers being choosy on who to share their data with and what data they share. But companies with first-party data have an advantage as the organization collects it, and you can do first-party data marketing even if the customer doesn't want it shared. However, you are obligated to use the data wisely.
First-party data is good as your management. It means you need to have the right strategy to collect, keep, manage and share the data across the company. This will help all the company's departments deliver consistent, relevant, and impactful customer experiences.
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