...

Limestone Digital

You Could Be Sitting On A Goldmine!

What is 1st Party Data?

First-party data is information you collect directly from your customers’ consent on your own channels. It can stem from customer purchases, website traffic, form fills, and other actions that require a user to “opt-in” or submit personal identifiers. You also own this data, so there are fewer privacy concerns associated with collecting, storing, and using it. With the eventual depreciation of third-party cookies, first-party data is more valuable than ever.

Speaking of which, what exactly are third party cookies and how are they related to marketing? Third-party data is data you acquire from a data aggregator. Data aggregators do not collect data directly but gather it from other companies and compile it into a large dataset that advertisers are allowed to use. As a result, the data can come from many different sources/ and there’s not always a clear definition of where it originated from. There is nothing wrong with using third party data in your marketing, but as privacy regulations become more prevalent (and with third party cookies eventually going away), reliance on this data could become quite an obstacle.

Customer experience is continually evolving, largely because consumers are getting smarter and more skeptical. The internet has given them more access to information to help them make purchase decisions, and their expectations on how companies should treat them have grown.

So what does this mean for you and your business?

I’m sure you’ve heard the phrase “data is the new oil” – and it couldn’t be more true! Odds are that you are sitting on a CRM of some sort – this is valuable marketing data that we can activate! Odds are that you have a website that’s attracting traffic to it – this is also valuable marketing data that we can activate!

This first party data has incredible advantages over the alternatives. You aren’t sharing this data with other businesses (your competitors), we know how this data is collected and are confident in it’s accuracy, and we have the ability to filter/fine-tune/and refine what we consider valuable.

 

What are some real world examples of using first-party data?

  • Let’s say that you’re a restaurant that uses a QR code menu. We could place a pixel on the menu scan page so that we can retarget in-restaurant visitors with specials, menu changes, gift card promotions, etc. via paid ads. This way, we aren’t renting the same restaurant demographic/interest data list your competitors are – we know these users are familiar with our establishment and will be more receptive to these ads.

 

  • Your website (hopefully) has some sort of conversion action on it. Whether it’s a phone call, lead submission, purchase, etc. – there should be an action for a user to complete. Broadly speaking, a conversion rate of any given website can fall in the 2-4% range. Another way of looking at this is that 96-98% of users leave without taking any action! (but they were on your site for a reason, right?). This is where retargeting comes in. We know they were interested, they spent some time on our website – I don’t want them to forget about us! Our next action needs to be providing our value through retargeting them across the internet. Acting on this data we’ve collected is so much more powerful than relying on 3rd party data segments – we know who these users are, and they know who we are!

 

  • It’s easier to tell Meta who your best customers are rather than having to spend a bunch of money to let Meta find out who they are through trial and error. If you have a customer list and are running social ads, upload that list of customers so Meta can run a lookalike audience of your best customers. The more data Meta has to work with on your target audience, the better your ads will perform! The alternative is boosting social posts for vanity metrics like engagement (but too bad engagement doesn’t pay the bills!)

 

As we look to the future, leveraging first-party data isn’t just a strategy—it’s a necessity. By harnessing the power of data you’ve directly collected, you’re not only ensuring compliance with privacy regulations but also setting the stage for more personalized and effective marketing campaigns. In the vast ocean of data, the most valuable treasures are those closest to home! Embrace your first-party data, and transform the way you connect with your audience!

Share the Post:

We would love to work with you

Get in touch today and receive a complimentary consultation.

Visit us

465 East High Street Suite #201 Lexington, KY 40507

Call Us

859-279-2105

Related Posts

Check out our introductory video for Limestone Digital!