What is First-party data? Building a data strategy
Article written by
Stuart Brameld
What Is First-Party Data?
First-party data is information you collect directly from your customers or users through your own channels. This includes data from your website, apps, CRM systems, email marketing, surveys, and customer support interactions. Unlike third-party data, first-party data is owned entirely by your business, giving you complete control over its accuracy, privacy, and usage.
First-Party vs Second-Party vs Third-Party Data
Understanding the differences between first-party, second-party, and third-party data is essential for building an effective growth marketing strategy. Here's a quick overview:
Data Type | Description | Examples |
|---|---|---|
First-party data | Data you collect directly from your own audience. | Website analytics, CRM data, purchase history, email interactions, customer surveys. |
Second-party data | Data collected by another company and shared directly with you through partnerships. | An airline sharing customer data with a hotel chain. |
Third-party data | Data aggregated and sold by external providers with no direct relationship to your customers. | Demographic data, behavioural insights, intent data purchased from data brokers. |
Why First-Party Data Matters for Growth Marketers
First-party data offers several key advantages for growth marketers:
Accuracy: Data collected directly from your audience is more reliable and relevant.
Personalisation: Enables targeted marketing campaigns, improving customer experience and conversion rates.
Cost Efficiency: Reduces reliance on expensive third-party data providers, lowering marketing costs.
Compliance: Easier to manage privacy regulations like GDPR and CCPA, as you control data collection and usage.
Competitive Edge: Provides unique insights into customer behaviour that competitors can't access.
Challenges of Using First-Party Data
While first-party data is valuable, it also presents some challenges:
Limited Scale: Restricted to your own audience size, potentially limiting reach compared to third-party data.
Data Management: Requires robust infrastructure and processes to collect, store, and analyse effectively.
Resource Intensive: Collecting and managing first-party data can require significant investment in technology and expertise.
Key Trends and Statistics
Recent changes in privacy regulations and browser policies have accelerated the shift towards first-party data:
A Deloitte survey found that 61% of high-growth brands are prioritising first-party data strategies.
Google's planned phase-out of third-party cookies by 2024 is pushing marketers to focus on first-party data.
Boston Consulting Group research shows companies effectively using first-party data achieve up to 2.9 times higher revenue growth compared to those relying on third-party data.
What This Means for Growth Marketers
The shift towards first-party data presents both challenges and opportunities. Growth marketers must now:
Invest in effective data collection and analytics tools.
Develop clear strategies for data privacy compliance and transparency.
Prioritise building direct customer relationships through personalised experiences and targeted campaigns.
How Growth Method Helps You Leverage First-Party Data
Growth Method is the only work management platform built specifically for growth marketers. It simplifies your growth marketing workflow by combining ideation, experimentation, and analytics in one powerful platform. Here's how Growth Method supports your first-party data strategy:
Ideation: Our intuitive ideation system ensures your growth ideas align with your first-party data insights. Ideas are automatically categorised and prioritised, keeping your entire team informed and aligned.
Experimentation: Growth Method streamlines your experimentation process, enabling rapid testing and validation of strategies informed by your first-party data. Our structured workflow ensures high experiment velocity and actionable learnings.
Analytics Integration: Seamlessly integrate with major analytics platforms such as Google Analytics, Amplitude, and MixPanel, allowing you to easily analyse and act upon your first-party data.
Industry-Leading Reporting: Effortlessly generate detailed reports to demonstrate the ROI of your first-party data-driven campaigns to stakeholders and team members.
"We are on-track to deliver a 43% increase in inbound leads this year. There is no doubt the adoption of Growth Method is the primary driver behind these results." Laura Perrott, Colt Technology Services
Building Your First-Party Data Strategy
To effectively leverage first-party data, growth marketers should:
Clearly define data collection goals and identify key data points relevant to your business objectives.
Implement robust data collection tools and processes, ensuring compliance with privacy regulations.
Regularly analyse and segment your data to uncover actionable insights and opportunities for personalisation.
Continuously test and optimise your marketing strategies based on first-party data insights.
Conclusion
First-party data is increasingly critical for growth marketers aiming to deliver personalised experiences, improve marketing efficiency, and drive sustainable growth. By investing in a robust first-party data strategy and leveraging platforms like Growth Method, marketers can stay ahead of industry trends, comply with evolving privacy regulations, and consistently demonstrate marketing ROI.
Growth Method is the only work management platform built for growth marketers. We help companies implement a systematic approach to grow leads and revenue. Book a call today to see how Growth Method can support your first-party data strategy.
Article written by
Stuart Brameld