First party data is data that is collected by a business directly from its customers, typically through interactions on the company’s website or other online properties. This type of data can be a valuable marketing tool because it provides detailed information about the interests and preferences of a business’s customers. By analyzing first party data, businesses can gain insight into the behaviors and motivations of their customers, which can help them to create more effective marketing campaigns and strategies. For example, a business might use first party data to identify trends in customer purchasing behavior, or to develop personalized offers and recommendations based on a customer’s past interactions with the company. Overall, first party data can help businesses to better understand their customers and deliver more relevant and valuable marketing experiences. Third-party data has recently gotten its fair share of the spotlight as a result of Google’s phase out of third-party cookies. Third-party data is information about an individual’s online habits that is collected by companies and sold to other businesses—usually for the purpose of informing the business’ advertising and marketing strategies. What is important to note is that third-party data is aggregated from across the internet, not a business’ specific customers, so the insights may or may not be entirely relevant to a particular company’s customer base.
First party data can strength e-commerce business. As information that is unique to the business itself, first-party data can inform everything from products and pricing to branding.
First of all you should create first-party data strategy: what first-party data is being collected and how it’s being collected and used. Are you going to collect users profile? users usage trnds? users instore behavior ? then you need to have a storage plan – In order to store the data, it’s important that the right cybersecurity precautions are in place. Next stage is have a evolution plan – how to grow and scale: how to use the data for improve and strength the business – are you going to use the data for future , customized product road map ? are you going to use it for more accurate marketing activities ? or for closing the right strategic partnerships ?
The most important part of first party data is the one that enables to build strong customer relationships: use it for creating a data driven marketing and data based on going relations with your customers. This part is based on your capability to build a micro segment strategy map of all your customers.
Generally speaking there are few basis activities that online stores should do in order to build a significant data base ( not only first party data ) :
- Cookies: Online stores can use cookies to collect data about users as they browse the website. A cookie is a small piece of data that is stored on a user’s computer when they visit a website. This data can include information about the user’s browsing habits, their location, and other details.
- Forms: Online stores often ask users to fill out forms with their personal information, such as their name, email address, and mailing address. This information is then stored in the store’s database and can be used to personalize the user’s experience or to send them marketing materials.
- Tracking pixels: Some online stores use tracking pixels, which are small pieces of code that are embedded on their website. These pixels can track a user’s movements and actions on the website and send this data back to the store’s servers.
- Social media: If a user logs into an online store using their social media account, the store may be able to access certain information from their social media profile, such as their name, profile picture, and friend list.
- Third-party data: Online stores may also purchase data about their users from third-party data brokers. This data can include information about users’ demographics, interests, and online behavior.