What is first-party data?

First-party data refers to data collected directly by a company from its customers or visitors.
This data is collected through interactions such as purchases (physical or digital), use of a platform or behavior on a website, among others. This information is collected subject to the visitor’s consent, as required by regulations.

This data is considered the most valuable for a company, as it is collected directly from its own customers and is therefore more reliable and relevant than data collected by third parties.

We can’t stress this enough: data collection must be carried out with respect for data protection and security. An efficient data collection platform enables smoother data management and more relevant data analysis for digital marketing.

Any collection requires the application of good practices and customs

To collect proprietary data efficiently, it’s important to adhere to certain best practices, such as transparency, simplicity and relevance. But that’s not all! It is also important to respect two key points:

• Regulation and consumer confidence
  Collecting and using first-party data involves several regulatory challenges, including compliance with Europe’s General Data Protection Regulation (GDPR). Companies must ensure that they meet the standards imposed by this regulation to avoid significant financial penalties. In addition, it’s crucial to gain the trust of customers when it comes to collecting and using their personal data. To achieve this, companies must be transparent about how they handle this information, and offer consumers full control over how their data is used.

• Data collection and analysis
  First-party data can be collected in a number of ways, notably via purchases and purchase history. Analysis of this data then enables us to better understand customer behavior and needs. One of the main advantages of first-party data is its quality. Indeed, this data is often more accurate and reliable than that from other sources, as it comes directly from interactions between the company and its customers. Granularity and accuracy are two major advantages.

At Lucky Cart, as with many of our tech and digital colleagues, respect for user privacy is paramount.

It’s important to set up clear privacy policies that everyone can understand. It is also essential to protect the data collected by using appropriate measures for enhanced data security. Last but not least, it is essential to comply with current regulations on the protection of personal data, to ensure responsible data collection.

Why is first-party data so important?

First-party data is important for companies because it enables them to better understand their customers and personalize these offers according to their needs and preferences.
This data also enables companies to develop stronger relationships with their customers by offering personalized experiences and proactively responding to their needs.

What are the challenges of first-party data for brands and companies?

In a world where data is becoming an essential asset for digital marketing, brands and companies are increasingly looking to exploit first-party data to optimize customer relations.

This data offers considerable advantages, both in terms of quality and exploitation potential.

How can first-party data be used to personalize the customer experience?

Unleashing the power of first-party data is essential to maintaining a competitive edge and delivering an experience across all channels. Its use can dramatically improve the customer experience, personalizing offers and communications according to individual preferences. With in-depth customer knowledge, companies can tailor their communications to be relevant and engaging.

Personalization goes far beyond putting a consumer’s first name on a website page or in an email. First-party data allows us to know which products have already been purchased, as well as the customer’s purchasing history and frequency, so that we can tailor our offers accordingly.

Personalization is an effective marketing strategy for enhancing the customer experience and strengthening loyalty. A better understanding of shoppers’ expectations enables us to optimize the range of products and services on offer, and ultimately to promote conversion.

In-depth analysis of first-party data also enables us to work on predicting purchasing behavior. It enables us to analyze consumer activity and predict what they are most likely to do next.

The aim of first-party data is always to understand the customer well enough to create the personalized experiences they expect. It’s essential to be transparent and open about what data you collect and how you’ll use it, and to give customers the opportunity to update this information where possible, or unsubscribe if they change their mind.

As a reminder, according to a Fevad study :

• 85% of consumers expect a personalized experience, while only 10% of companies are thinking of offering this type of experience. We’ve dedicated an entire article to the personalization of the shopper experience, for you to read or re-read!

Now that we know more about the contour, are they the secret ingredient?

For over 20 years, the cookie has been the alpha and omega of digital advertising. The cookie is used to track users and collect data.

This technology was used by the vast majority of the digital advertising industry. However, with changing regulations on cookies and privacy, their use is being called into question. This is where the concept of cookieless comes in.

In 2018, the world of digital advertising was turned upside down: Google announced the end of this technology, originally scheduled for 2023 and then 2024, with the consequent loss of considerable amounts of data. A wave of panic is sweeping through the industry (techies, advertisers, retailers) in the face of this change of method, technology and paradigm.

The disappearance of third-party cookies has an immediate impact on online advertising: advertisers have to review their targeting strategies and find new solutions to reach their audience. Without third-party cookies, ad targeting becomes more complex. And yet… The disappearance of third-party cookies is just the finishing touch to a process that began several years ago, with the rise of adblockers and the strongly expressed desire of Internet users to regain control of their own data, to demand greater transparency in its collection and also (and above all) in its use.

Once the market is established, what can be done about it?

This announced end necessarily means that the sector has to reinvent itself. An opportunity to work differently. Yes, and how?

By exploiting the data collected by each company on its proprietary digital assets.

The first-party data strategy is undoubtedly the future of customer relations, enabling brands to offer the best possible customer experience. This data is largely under-utilized, yet it’s a goldmine!

First-party data helps companies to better understand their customers by providing valuable information on their purchasing preferences, browsing habits and online behaviors. This data can be used to tailor marketing actions and offers to the specific needs of each customer.
This ultra-precise data makes it possible to personalize offers, messages and experiences.

To maintain a competitive edge and deliver a consistent experience to all these customers, across all available digital channels, it’s essential to unleash the power of all your first-party data.

With the economic downturn, acquiring new customers becomes more difficult. Retaining existing customers and building brand loyalty is just as difficult. All it takes is one bad experience for a customer to turn to a competitor. And that experience can be as simple as repeatedly sending out advertisements for a product they’ve already bought.

Conversely, consumers will gladly trade their personal information for more relevant and personalized experiences, especially if they trust you and want the value you offer in exchange for that data. It then becomes essential that you act on this data to deliver the experiences customers want and expect. This exchange of value is what you need to increase loyalty and retention.

A solid strategy for using and enriching first-party data opens up new opportunities for better personalization and customization at every stage of the customer journey. In the long term, better use of first-party data will help us to understand in depth who your customers are and what they expect from a brand, a retailer… In turn, this allows us to fine-tune every campaign and every communication, which means that investments from marketing, trade, e-commerce or digital will be adjusted to achieve better results. It’s a powerful combination.

At Lucky cart, we’ve been working with first-party data for many years. Every day, our experts work alongside retailers and manufacturers to make the most of the data we process, on behalf of our partners.

18.5 million activatable shoppers, 20 billion lines of available receipts, 3 years of purchase history… This mass of useful data is used to address digital shoppers in the best possible way, to provide them with a clear answer and help them along their purchasing path. All for business purposes. Need we point out (again) that we comply strictly with current regulations?

 
Nothing is done at random, everything is useful to bring, at our level, our expertise to go even further in ultra-customization. But that’s another subject!

Virginie Chollois – Marketing & Communication Manager Senior.