First-party data is a widely used term these days, particularly in marketing. In fact, a recent study by my former employer Forrester found that 87 percent of marketers consider it the most important source of customer information.
A study by Econsultancy validated what we hear at BlueConic all the time which is that marketers have been less than impressed with the impact of their data-driven marketing campaigns. Just a little over a third of senior-level respondents claimed these types of efforts had a strong positive impact on overall goals. While there are a variety of contributing factors to this kind of response (integration problems, lack of data alignment, informational error etc.), the biggest takeaway of this study was the suggested remedy.
Why? Well, for starters, the majority of marketing respondents ranked first-party data the highest for positively affecting outcomes. But what exactly is first-party data? Though there are many different definitions out there, at BlueConic we consider first-party data to be the information our customers collect about their customers and prospects. Whether it is data about visitor interactions, tracking information, or personally identifiable details provided by a customer, first-party data is the stuff that you own and has been provided, implicitly or explicitly, by the individual.
And it is highly effective. In fact, 74 percent of participants cited first-party data as a major source for gaining critical customer insights. And the fun doesn’t end there: Six out of 10 marketers reported that first-party data not only creates the biggest increase in customer value but also the highest campaign boost among data sources, and by a considerable amount.
We watch this in action with our clients, who see 4x traffic to subscription pages when the CTA content is based on that person’s behavioral data or double digit increases in conversion rates and average order values due to personalized dynamic messaging.
“Leveraging first-party data sources provides marketers with the clearest available information.”
Leveraging first-party data sources (including CRM) provides marketers with the clearest available information about customers because it comes straight from them – it’s direct from the source! As a marketer, you know key data nuggets about these users because they provide the information via website browsing, purchasing history, app usage and/or customer lead forms.
It should come as no surprise then that 82 percent of the respondents either agree or strongly agree that they will be increasing their usage of first-party data.
So, (hopefully) we have you sold. First-party data is an extremely valuable tool for marketers looking to improve on a variety of critical marketing motives. In our next post, we will move past the what and why and dig deeper into how marketers can put first-party data into action.