What is First-Party Data? How to Use It, Top Tools + Examples

First-party data is a method of gathering customer insights using your business’s website, apps, and other owned properties. Learn the best tips for collecting and using it to grow customer engagement and loyalty.

Google made it official — as of 2024, Chrome will begin phasing out third-party cookies. It’s a major blow to advertisers and marketers, but we all knew this was coming.

The question is: Did you prepare your campaigns for the shift?

If you’re not already collecting first-party data from customers, then you risk losing them to competitors who are. And guess what? They’re using this info to create personalized experiences that are engaging and loyalty-driving.

But all is not lost — there’s still time to act. Continue reading to learn about first-party data, how to use it, and the top tools to collect it, so you can get on the ball.

What is first-party data?

First-party data is customer information companies gather using their own channels, like websites, mobile apps, or physical stores. It includes details about the buyer and their purchasing habits, such as products/services viewed and saved, and purchase history.

If you’ve visited any website lately, you’ve likely seen a pop-up asking for your permission to gather these details. Unfortunately, some website visitors will opt out of having this essential data collected, hindering digital marketing campaign personalization.

Third-party cookies are when an independent third party gathers data from a site that they don’t own. (Image: Pexels)

How does it work?

Using first-party data is smart for brands looking to overcome the hurdles of a cookieless future. Here’s a look at how first-party data collection works across touchpoints:

1.  An internet user clicks on a website, enters an app, or visits a local store.
2. A pop-up appears asking for permission to gather information about their interactions on the app or website or to sign up for an account or newsletter. A store clerk asks a customer to join a loyalty program or complete a survey.
3. After receiving consent, the information is stored in a company database, such as a customer relationship management (CRM) system or data management platform (DMP).
4. Sales and marketing teams analyze the data gathered over time to create customer profiles and personalized marketing efforts.
5. The company continues to update and refine data collection and usage strategies to improve results.

As long as you have the customer’s consent and the proper tools, you can continue building memorable customer experiences as you did with third-party datasets.

How brands are using first-party data in their marketing strategies

Collecting and using first-party customer data sounds amazing. But what does it look like in the real world?

Let’s explore three examples of first-party data from brands that have seen results.

1. Creating tailored email campaigns to boost clicks

One way brands can use first-party data is to personalize email campaigns to increase click-through rates. That’s what Cleartail Marketing is doing to increase engagement with its clients’ target audiences.

“By leveraging website analytics and CRM data, we identified patterns in user behavior and preferences,” shares Magee Clegg, CEO of Cleartail Marketing. “This informed our email campaign strategies, focusing on content about specific products that users had shown interest in. As a result, we achieved a 22% increase in click-through rates and boosted customer engagement significantly.”

2. Using post-purchase surveys to inform ecommerce strategies

Online shoppers love a good personalized experience. Seeing products and services relevant to their interests and needs is delightful and increases the odds of a sale — win-win.

This is how First Pier is using first-party data to its advantage on platforms like Shopify.

“One compelling example is our use of post-purchase surveys through apps like Zigpoll,” says Steve Pogson, founder of First Pier. “By integrating these surveys into the customer journey, we’ve been able to collect detailed feedback directly after a transaction.”

This data has provided insights into customer satisfaction and product preferences, allowing First Pier to adjust its offerings and marketing messages accordingly.

“For instance, after noticing a trend in customer feedback favoring a specific product feature, we highlighted this in our promotional campaigns, which resulted in a 20% increase in repeat purchases for that product line,” continues Pogson.

3. Personalizing SaaS marketing with first-party data

First-party data isn’t just for ecommerce brands, you can also use it to grow your SaaS business.

Here’s a look at how Haiko de Poel, Owner of Mass Impact used first-party data for a SaaS project.

“One noteworthy example is a project we undertook in the SaaS space, where we focused on utilizing first-party behavioral data collected from user interactions on the platform,” shares Poel.

“By analyzing patterns in how users engaged with different features, we were able to personalize the user experience and marketing messages significantly. This approach resulted in a 30% increase in user engagement rates and a 50% uptick in subscription renewals.”

Best tools to gather and store first-party data

The right tools will make collecting, storing, and analyzing first-party data easier. Here’s an overview of our top picks:

1. Salespanel
2. Google Analytics 4
3. Mailchimp
4. HubSpot Forms
5. Formstack
6. ConvertKit
7. Gravity Forms
8. OptinMonster

1. Salespanel

Salespanel is a marketing analytics and first-party intent data tracking software tailored for B2B enterprises. Here’s a look at its features:

• Lead capture and custom segments
• Customer journey tracking
• Personalized marketing
• Account intelligence

Pricing: Starts at $99/mo billed annually

2. Google Analytics 4

Google Analytics 4 is a web analytics service that tracks and reports website traffic — odds are, it’s already in your arsenal. If not, here are the features it comes with:

• Real-time reporting
• Custom reporting
• Audience analysis (great for building lookalike audiences)
• Conversion tracking

Pricing: Free version available

3. Mailchimp

Mailchimp is an email marketing and automation platform many marketers use to build lists for their newsletters and drip campaigns. Here are the features it includes:

• Email design templates and customizations
• Audience segmentation
• Customer journey builder
• Predictive analytics

Pricing: Free for one month for up to 500 contacts, then is $20/mo

Second-party data can be useful because it can offer a new perspective on your target audience. (Image: Pexels)

4. HubSpot Forms

HubSpot Forms is a form builder — consider it if you already use the HubSpot CRM to store lead information. Here are the features it comes with:

• Drag-and-drop form builder
• Custom fields
• Lead tracking
• CRM integration

Pricing: Free

5. Formstack

Formstack is a form builder and data collection tool, perfect for gathering first-party insights from customers. Here are its features:

• Drag-and-drop form builder
• Conditional logic
• Data encryption
• Workflow automation

Pricing: Starts at $59/mo

6. ConvertKit

ConvertKit is an email marketing platform used by marketers and brands to grow email lists. Here’s a list of its features:

• Automated email sequences
• Visual automation builder
• Landing pages and forms
• Audience segmentation

Pricing: Free plan available for up to 1,000 subscribers; paid plans start at $15/mo for 300 subscribers, and $29/mo for unlimited users and reports and dashboard insights

7. Gravity Forms

Gravity Forms is a WordPress form builder plugin, so if this your preferred CMS, check out its features:

• Custom form creation
• Conditional logic
• Multi-page forms
• Integration with various email marketing and CRM platforms

Pricing: Basic license at $59/yr, Pro license at $159/yr, Elite license at $259/yr

8. OptinMonster

OptinMonster is a lead generation and conversion optimization tool that comes with the following features:

• Drag-and-drop campaign builder
• Exit-intent technology
• A/B testing
• Advanced targeting rules

Pricing: Basic plan at $15/mo, Plus plan at $25/mo, Pro plan at $57/mo, Growth plan at $100/mo

Common mistakes to avoid with first-party data collection

You’re getting the hang of gathering first-party customer data. But there are ways to trip things up along the way, if you’re not careful.

Here’s an overview of the most common mistakes and how to prevent and fix them:

• Not being transparent about customer data collection and usage. Don’t ask for permission to collect personal data without notifying them of how you’ll use their data. State it clearly inside of the privacy policy you share when asking customers to opt in.
• Isolated data in cross-departmental silos. Marketing likes HubSpot, while your sales team prefers Salesforce. Don’t let this fragment customer data across departments and tools. Select a platform everyone can use and access to collect and find customer data.
• Over time, data becomes outdated, inaccurate, and incomplete. Some campaigns will collect names and emails. Others will gather phone numbers and addresses. Ask your teams to update customer records as new information enters the system (vs. creating new records each time).
• Over-collecting information your teams don’t really need. More data isn’t necessarily better, especially if it leads to privacy concerns. Only gather the details needed to create better customer experiences, nothing more.
• Not safeguarding your customers’ data adequately. Your customer data platform (CDP) or CRM should be fortified with encryptions and protection to keep information secure from breaches. Otherwise, you could lose the trust and loyalty of your customers when a leak occurs.
• Issues with non-compliance with data privacy regulations. Stay on top of the latest industry standards, rules, and laws regarding customer data collection, storage, and usage. Learn the latest requirements and implement them.
• Not analyzing and using the data. You built campaigns to gather data and purchased tools to store it. If you’re not using the data, you’re wasting money and an opportunity to build a stronger, loyal customer base.

You can’t afford to make these pitfalls, so be diligent in keeping a clean, compliant, and useful customer database.

What the future holds for first-party data

First-party data is already a big deal for businesses, with 88% of respondents in a VentureBeat report saying first-party data has become front-and-center in their organizations over the past two years.

Another 73% of businesses feel first-party data will help mitigate privacy concerns. This shows most brands understand the value of collecting data directly from customers.

Looking ahead, the combination of first-party data and advanced tech like AI is going to be a game-changer.

AI can dig deeper into your data to find actionable insights, making your marketing and retargeting more precise and personalized.

“A trend we’ve capitalized on at MBC Group is the shift towards AI-enhanced predictive analytics, which uses first-party data to forecast customer behavior more accurately,” explains Matthew Montez, founder of The MBC Group.

This empowers small business owners to tailor their first-party data strategies based on anticipatory insights instead of merely reactive insights.

“For instance, by analyzing trends from direct customer inputs and interactions with AiDen, we’ve helped clients craft marketing campaigns that are not only timely but also deeply resonant with their target audiences,” continues Montez.

And don’t forget about zero-party data, where customers willingly share their preferences. This will add another layer of valuable insights to your strategy. Organizations that use first-party insights will have a leg up in delivering more relevant and personalized customer experiences.

The best time to start is now before third-party data completely diminishes and the competition soars. Companies that invest in good data infrastructure and prioritize customer privacy will be the winners in the battle for cookieless data.

First-party data vs. second-party data vs. third-party data

Customer data comes from first-party, second-party, and third-party sources. But what separates them and which should you use?

First-party data is information about a customer collected directly from them (e.g., names, addresses, emails, numbers). You can gather it using your website and app analytics, or through feedback forms. It requires consent from the customers to collect, store, and use.

Second-party data is customer information that comes from a trusted provider that gathers details from their first-party and third-party data. You can use it to enhance your records about existing customers and to gain insights about potential customers.

This requires an upfront or monthly payment to access this information. For instance, a large retailer sells shopping behavior data to a trusted brand that has products in its store.

Third-party data is customer information that comes from various third-party data sources, including public records, websites, and apps that don’t belong to your business. Data aggregators collect this information and sell it to businesses.

For example, Experian — a credit reporting agency — collects consumer data and shares it with lenders for a fee. The issue: third-party data is less accurate and doesn’t require consent, which can raise privacy concerns.

Out of the three, first-party data is the most reliable and valuable. So use the tips and tools we provide to build a database of high-intent leads and customers.

Why first-party data matters

Privacy laws are changing. Some of the biggest names in tech, such as Google and Apple, changed their policies for tracking people via their phones and computers.

Because of these changes, many third-party data options are becoming more limited or going away entirely.

The problem with leaning heavily on third-party data is that browsers, such as Google’s Chrome and Microsoft Edge have already begun or are planning to limit or block the use of third-party data.

Google started blocking the use of third-party data and one of Apple’s updates included a new transparency framework where apps have to request permission before they can track users.

But this isn’t the only reason to focus on first-party data — here are other reasons it’s the best source of customer information:

• Accuracy and reliability: When you collect data points directly from your customers, it’s more likely to be correct and up-to-date.
• Privacy compliance: You’re collecting customer information with their consent, making it easier to comply with GDPR and CCPA regulations.
• Customer insights: Accurate customer data and attributes means better insights into their behaviors, preferences, and demographics.
• Personalization: With the reliable data you gather, you can create personalized marketing campaigns that resonate with and convert prospects (e.g., cross-selling and upselling).
• Customer trust: Asking permission to collect and use customer data creates a direct relationship and builds trust, which can improve loyalty.
• Data ownership: Since you received permission to collect customers’ data, you have control over its use (based on the terms of the privacy policy customers agreed to).

Seems like it can’t get any better than this, but there’s one type of customer data that’s better — zero-party data. So consider adding it to your cookieless strategy.

The takeaway

Your marketing is only as good as your data. If you rely solely on third-party data, then you’re putting your business in a tight position. Soon, the cookies will crumble and you’ll be left scrambling for an alternative.

Don’t allow your competitors to undercut you with first-party data collection. Be one of the first to make the switch from third-party data to prepare your future campaigns for success.

If you need help determining the best tech stack and implementation, get in touch with the experts at HawkSEM today.

This post has been updated and was originally published in September 2021