With third-party cookie deprecation well underway, first-party data is taking a front seat and quickly becoming the gold standard of digital marketing as it provides more information about your customers. First-party data can help any digital strategy be successful. Below are some key ways you can maximize first- party data when piecing together your identity graph.

1. What is first-party data, and what are its benefits?

First-party data is information gathered directly from website visitors or customers. It can include name, email address, previous purchases, and more. Marketers can then use these details to inform a variety of valuable use cases, such as campaign optimizations or when reviewing traffic analytics. For example, a marketer can create personalized content that increases the likelihood of conversion on your site.

First-party data provides insights into what customers are looking for; increased loyalty due to better personalization; and higher conversions because you’re giving them exactly what they want instead of generic content. 

2. What are the different types of first-party data I can use in my campaigns?

There are two major types of first-party data you can use in your campaigns —  deterministic and probabilistic. Deterministic data includes personally identifiable information (PII) such as first name, email address, purchase history (online and offline), or a customer’s user ID. These identifiers directly associate to a person. Probabilistic data types include less direct relationships to a person and have a scrambled or “hashed” IP address, ad server match IDs, hashed email, first-party cookie IDs, or Acxiom’s Analytic ID.

The deterministic PII data IDs give the most accurate representation of a person’s interests because it’s more detailed than just a user’s location or web browsing habits.  Probabilistic website visitor IDs help identify which posts users have read and provide insights into what content resonates with them the most so you know where to focus your efforts. What type should you include? That depends on what kind of project you’re running: one type is more appropriate for a first-time customer, while the other is used to reach those who have already interacted with your brand. However, when it comes to building a complete picture of your customer base, it is almost always best to have a good mix of deterministic and probabilistic data. After all, it is your data!

3. How do I get the most out of first-party data by using it with other sources?

First-party data should be used along with external sources, such as customer feedback surveys and CRM tools. This practice enables you to receive first hand insights into what customers think about your company and how they’re interacting with it regularly, which is precisely the kind of information first-party data provides. With more accurate customer portraits, marketing teams can develop better strategies for future campaigns using first hand knowledge based on real-life interactions. 

4. How do I collect deterministic first-party data from customers? 

First-party data can be collected through email, social media (posts and interactions), by using online forms on your website, and by deploying first-party tags. There are five scenarios when collecting first-party data: 1) collecting it after a purchase has been made; 2) when someone responds to an invitation for the first time or signs up for something like a newsletter; 3) as they’re scrolling through your site looking at products/services that interest them; 4) from information submitted via a registration form on your webpage(s); and 5) what’s shared with other people about their experience using specific services or buying certain items. 

5. How do I collect probabilistic first-party data from customers?

The best way to collect probabilistic first-party data is by using first-party tags. These collect behaviors from users who may be anonymous because they’re not identified through PII identifiers such as first name or email address. This type of data can be collected when a user visits your website for the first time or buys certain items from you but does not provide any other identifying information.  The tags also leverage first-party cookie IDs, which can store preferences associated with people without revealing their identity (such as IP addresses). Cookies are a tried-and-true web technology, used since 1993! These first-party cookies use the same technology as third-party cookie IDs by identifying visitors anonymously based on which pages they visit. However, first-party cookies are owned by the brand, so any data collected is 100% yours. It is never sold or shared with other companies or users without your consent. For these reasons, while third-party cookies are going away, first-party cookies are here to stay.

Conclusion

A first-party data strategy is an investment in your brand’s future. It helps you better understand your customers and prospects and can be used to create rich portraits tailored to their needs. The benefits of a first-party data strategy include the ability to increase conversion rates by understanding what motivates someone at each stage of the buyer journey; drive more repeat purchases with personalized promotions based on purchase history; and improve customer loyalty by providing relevant offers through email or other digital messaging channels.