Internet and Ecommerce free of cookies. Many marketers are still awake about it, but let's be honest: it's a blessing. After all, as an online consumer you are driven crazy by those intrusive advertisements that are the result of third-party advertisements dates, collected with cookies. The sooner we get rid of that, the better. Moreover, it forces online entrepreneurs to quickly take steps towards real personalization of the Customer Experience. Based on a first-party data strategy.
'It's really crazy that consumers are being followed to the farthest corners of the web in order to take advantage of relevant advertisements'. With this bold statement, Google makes a warm plea for 'privacy first'. And the Tech giant is putting a stop to what it says by cutting through third-party data that is collected from time to time with the use of cookies. Google no longer offers support for this. The emphasis will be on first-party data. With this, e-commerce is entering a new phase. The development and application of a sound and consistent data strategy can no longer be delayed.
Marketers make first-party data a top priority
First-party data – also known as 1st party data – is information that companies obtain directly from their own online sources. Think of your own website, apps and CRM systems, but also your own social media accounts and customer research. It is therefore not random, internet-wide harvested information (third-party data), but first-hand information, based on concrete customer behavior in the various online channels of the sales funnel.
according to eMarketer a data strategy based on first-party data is high on the agenda of marketers. The leading market research firm found that 85% of US marketers surveyed consider first-party data a top priority. In Western Europe, that's 75%.
'It costs nothing and provides the most relevant customer data'
Unlike third-party data, retrieved with cookies and purchased from data suppliers, first data costs nothing. But you get the most relevant information from it. You learn where your visitors come from and what their demographics are, you learn about search behavior, transactions and purchase history. Plus, you'll discover what your visitors are interested in, how much time they spend on your site or app, and much more.
By consistently collecting, analyzing and linking this valuable data, and translating your knowledge into advertising and customer contacts, you can really work on the personalized Customer Experience. This is also the case for smaller webshops and B2B platforms. After all, you no longer need immense budgets to purchase data. It's the most cost-effective way to get to know your customers in depth.
Overigens is er wel een voorwaarde om daar vervolgens effectief commercieel gebruik van te maken. Je wilt de data optimaal beheersen, segmenteren, toepasbaar maken en er slimme marketingtools aan koppelen. Dat brengt de keus van een passend Customer Data Platform (CDP) is gaining momentum.
'Focus on quality, personalization, privacy and reliability'
Ultimately, you use first-party data (1st party data) to make money. You have a webshop or e-platform for that. Given the competition on the web, personalizing the Customer Journey is key. But the factors of reliability and privacy are also playing an increasingly important role.
Third-party data does not help trust in the internet and e-commerce. Google put it this way in the context of 'privacy first': 'Third-party data has seriously eroded online consumer trust. Over 72% of all people feel that advertisers and Tech companies are tracking and using everything they do on the internet. Of these, 81% indicates that the risks of unlimited data collection are greater than the benefits attributed to it by commerce.'
3 key benefits of first-party data
Careful application of your own data can then restore trust. It is one of the three big advantages. Collecting, analyzing and applying free first-party data provides building blocks for:
- the ultimate personalized Customer Experience – with web analytics and online customer research you can segment customers well and make your marketing efforts more effective;
- privacy-proof business operations – data security and privacy are the online consumer topics of this decade, first-party data, collected in line with national and international privacy legislation, is the most reliable and valuable information you can work with;
- in-depth knowledge of your customers – you can enrich and deepen information from your own sources, so that you really know who your customers are and can enter into a dialogue based on customer profiles.
The most commonly used and easily accessible technique for collecting 1st party data is of course Google Analytics. This gives you a good insight into your webshop or platform visit. First-party data only becomes truly powerful and valuable when your customers are involved and actively give permission to store and use their customer data. Think of login and registration functions. By giving your customers their own ID, you can – with permission! – follow and tailor-made service within your omnichannel strategy. In principle, all contact moments are suitable for collecting data. Also the contacts on the shop floor.
Centralize, integrate, segment
This leads to another challenge. How do you bring that data from all the different channels together, how do you keep the tsunami of customer information manageable, how do you ensure that everyone who is authorized to do so can do interesting things quickly and effectively? You've already thought about that, because otherwise you wouldn't be on this platform. The answer is of course: centralization of data storage and analysis using Customer Data Platform software (CDP). The offer is wide, technologies and tools for data-driven personalization to optimize the brand experience and user experience are getting smarter and more sophisticated. Just walk through it offer from CDP suppliers away.
In summary: first-party data is the future. 'Cookies are really dead now', Emerce recently triumphantly headlined. And let's be honest: to the online consumer, a cookie-free internet sounds heavenly. But what if you are not yet 1ste party strategy ready? Do not panic. For the time being, it is still possible to purchase third-party customer data and second-party data is also an option. This is first-party data collected by another company that you share for a fee. There is one drawback to this: you know nothing about the quality, nor about the lawfulness with which the data was obtained. Conclusion: it's better to start working with your own customer data.
