First-party data: challenges and benefits

Today’s marketers agree that first-party data is of vital importance. In fact, 90% of marketing managers say that proprietary data is a crucial strategic element for them. Yet only 30% of them collect and integrate this data across all their channels, and just 1% use this data to offer their customers a completely omnichannel experience.

Proprietary data and its benefits

First-party data is data that you collect directly from your audiences, customers and prospects, without going through an intermediary. For example, this could be data relating to visits to your website, e-commerce site or application. It provides you with information about your customers’ behaviour, their actions and the interests they have shown as a result of their interactions with your company.

This data is easy to collect and can be extremely useful for your business. It is much cheaper to collect than second or third-party data, and therefore more profitable from a marketing point of view. What’s more, first-party data comes from users who have a concrete interest in your brand because they have already interacted directly with it. They therefore represent qualified leads.

Compared with a company that only partially integrates its data, a company that makes optimal use of proprietary data (omnichannel) can double its incremental revenue and increase its profitability by a factor of 1.5.

Collecting data: the challenges

This information can be collected using various digital tools. A simple opt-in form, for example, is all you need to start collecting user data.

However, if you want to develop a data-driven strategy, you will face a number of challenges:

1. Access to data can sometimes be complicated by the reticence of certain customers. If you are focusing on personalisation, it is important to be careful not to scare off people who are concerned about their confidentiality.
2. Ethics are a major challenge when you decide to embark on data collection, because your targets are attaching more and more importance to it.
3. Collecting data without first thinking about it means putting in a lot of effort for very little result.

Challenge 1: access to data

Since some customers may be reluctant to authorise the collection of their data, you need to gain their trust. If you have direct contact with your customers, it will be easier to reassure them about the use of their data and convince them to share it with you. On the other hand, if this is not the case, you will need to be creative.

Data collection must be visible and comprehensible, using a user-friendly interface that leaves as much control as possible to the consumer. Naturally, it is essential to inform customers that their data can be deleted or modified at any time if they so wish. You must also clearly specify how you intend to use the data you collect.

The advantage of first-party data is that you know exactly where it comes from, so you can easily demonstrate to your users that you are collecting their data in full compliance with the rules in force on data protection.

Your customers’ trust will come from the way you communicate. Show your customers that this is a two-way sharing of value. Customers are much more inclined to share their data with companies when they see that they are acting proactively to establish a genuine relationship of trust and offer them a personalised experience.

Challenge 2: data ethics

Today, more than ever, we are witnessing a change in consumer expectations of brands. The issue of ethical data is omnipresent. Customers are more demanding than ever, and are now looking to companies to demonstrate their social responsibility. Before taking an interest in the products offered by a brand, they want to know why it exists.

Genuine commitments, concrete actions and transparent, sincere communication are essential today if we are to win or maintain the trust of our customers. An effective and responsible marketing strategy can then be transformed into a genuine competitive advantage for the brand and a considerably improved experience from the consumer’s point of view.

Advertising saturation, fake reviews and misinformation have led consumers to become more distrustful. As a result, the trust they place in companies has diminished and they place more credence in the opinions of influencers and other customers. This is affecting the way brands communicate. They must now make it a priority to reveal who they are, their values and their commitments. Consumers expect them to commit to fundamental issues such as health, society and the environment, as well as protecting their personal data.

Demonstrate integrity and intelligence. Don’t collect a lot of data if you have no use for it. Use artificial intelligence to optimise the allocation of your resources and avoid wasting data to reduce your digital impact on the ecology.

Challenge 3: thinking ahead

Your data marketing strategy needs to be carefully thought through if it is to bear fruit. You will need to test and optimise the data collection process as you go along. Don’t hesitate to question the KPIs you are measuring and to modify them when you feel it is necessary. A good strategy is an evolving strategy.