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The importance of first-party data moving forward
The importance of first-party data moving forward
03
10 Minute Read
If third-party cookies are allowed, then first-party data doesn’t matter anymore… right?
The debate around data privacy and the use of third-party cookies remains a hot topic. Recently, Google announced its decision to maintain third-party cookies for the foreseeable future, delaying the phase-out initially planned. While this may seem like a reprieve for businesses reliant on these cookies for targeted advertising, it’s imperative to understand the increasing importance of first-party data and pressure towards more robust data privacy practices.
Companies that pivot towards these elements will not only future-proof their operations but also build stronger, trust-based relationships with their customers. In this chapter, we’ll outline some of the ways in which businesses are capturing first party data.
The role of first-party data
First-party data is information collected directly from your audience or customers. This includes data from behaviors, actions, or interests demonstrated across your owned digital properties (website, app, social media, etc.). The significant advantage of first-party data is that it is collected with consent, making it more accurate, reliable, and compliant with privacy laws compared to third-party data.
First-party data comes directly from your audience, ensuring its relevance and accuracy. This data is based on actual user interactions and behaviors on your platforms, making it invaluable for creating personalized marketing strategies and improving user experience. Additionally, with the rise of privacy regulations like GDPR and CCPA, leveraging first-party data ensures that your data collection practices are transparent and compliant. This is good news, since users are becoming more aware of their data rights, and companies that prioritize transparent data collection and privacy will build trust and loyalty as a result.
But if accurate personalization and happy customers weren’t enough to convince you that first party data is superior, utilizing first-party data also reduces the dependency on third-party data providers, cutting down additional costs. So with all that said, it’s clear that even with Google’s announcement, first party data is still a top priority for many subscription businesses.
Methods for collecting first-party data
Now we’ve understood what first party data is, and why it’s still relevant today, let’s take a look at how businesses can actually collect it. Building a robust first-party data strategy involves leveraging multiple channels and methods to gather valuable customer insights. Here are some effective methods for collecting first-party data:
1. Data capture forms
Data capture forms are one of the most straightforward ways to collect first-party data. These forms can be strategically placed on websites, landing pages, and during checkout processes. By requesting essential information such as email addresses, preferences, and demographics, businesses can start building a comprehensive customer profile. Additionally, with the use of AI, subscription businesses are now getting even smarter about when exactly to show these forms, optimizing to find the point at which users are most likely to pay.
Best practices for data capture forms
- Keep forms short and simple: Avoid overwhelming users with lengthy forms. Focus on collecting essential information initially and ask for more relevant details as the relationship develops.
- Offer incentives: Provide fair value in exchange for information. This could be discounts, exclusive content, or entry into a contest.
- Ensure mobile-friendliness: Forms should be easily accessible and fillable on mobile devices to capture data from all user segments.
2. Newsletter sign-ups
Newsletters remain a powerful tool for engaging with customers and collecting first-party data. By encouraging visitors to sign up for newsletters, businesses can gather email addresses and preferences, which can be used for targeted marketing campaigns. It then becomes possible to track what topics are in demand and warrant more email opens from users. Armed with these preferences, businesses can design new offers, bundles, and packages to satisfy opportunities.
Best practices for newsletter sign-ups
- Highlight value: Clearly communicate the benefits of subscribing, such as receiving special offers, content, and updates.
- Utilize pop-ups and embedded forms: Place sign-up forms in high-traffic areas of your website to capture more subscribers.
- Segment your audience: Use the data collected to segment your newsletter lists and deliver more personalized content.
3. Free trials and demos
Offering free trials or demos is an excellent way to attract potential customers and collect first-party data. During the trial period, businesses can gather usage data, preferences, and feedback, providing valuable insights into real customer-product interactions and their interests.
Best practices for free trials and demos
- Simplify sign-up process: Minimize barriers to entry by keeping the sign-up process straightforward.
- Collect feedback: Use surveys or direct interactions during the trial period to gather feedback and understand user experience.
- Analyze usage patterns: Track how users interact with your product or service during the trial to identify potential upsell or cross-sell opportunities.
4. Surveys and feedback forms
Surveys and feedback forms are direct methods to collect qualitative first-party data. They can mainly provide insights into customer satisfaction and areas for improvement.
Best practices for surveys and feedback forms
- Be specific and concise: Design surveys that are easy to understand and quick to complete.
- Incentivize participation: Offer small rewards or discounts for completing surveys to increase response rates.
Act on feedback: Show customers that their feedback is valued by making visible changes based on their input.
The future of data strategy
While Google’s decision to retain third-party cookies might offer a temporary reprieve, the industry trend is still unmistakably moving towards privacy-centric data practices.
By adopting best practices for data capture, leveraging newsletter sign-ups, utilizing free trials, and implementing loyalty programs, businesses can build a rich repository of customer insights while maintaining trust through robust data privacy measures. Prioritizing first-party data collection and data privacy not only enhances marketing effectiveness but also fosters lasting customer relationships built on trust and transparency.
To stay ahead, businesses must continuously adapt to changing regulations and consumer expectations. But it seems clear that businesses who invest in first-party data collection now will be better positioned to thrive in this evolving landscape.
With a foundation of customer-led growth and first-party data in place, AI can take personalization to the next level, creating highly tailored experiences that keep customers engaged.
