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The move away from third-party data strategies is imminent. With Google much-hyped cookie apocalypse plans coming into effect by the end of 2024 in response to user privacy concerns, the invasive third-party cookies undergoing slow death. This means businesses will no longer be able to leverage cross-site tracking via third-party data strategies to collect user data.
Businesses that earlier underestimated the non-negotiable value of first party data strategies for collecting personal customer data are now on the verge of adopting the new third-party cookieless world. With the first party data becoming the new normal, an easy way to strike a balance in the digital ecosystem is by using device fingerprints, AI-driven contextual analytics, and predictive modeling to collect relevant personal data directly from end users.
Understanding the shift from third-party to first-party data strategy
Third-party data has become increasingly unreliable due to privacy policies and regulations, making it difficult to segment and target customers effectively. By collecting their own data using tools such as web analytics and surveys, businesses can better understand their customers and tailor experiences to their specific needs.
On the contrary, first-party data allows businesses to gain a more holistic view of their customers, including their preferences, patterns, and behaviors. With this information in hand, companies can use advanced data analytics to uncover trends that may be hidden within the data and use to inform decisions about responsive product design, marketing campaigns, and customer service strategies.
As a result, organization across different verticals has started relying on first-party data management strategies to collect the relevant data directly from customers so that companies can have more control over the accuracy and relevance of their data. Also, first-party data enables them to create more personalized customer experiences, better consumer privacy protection, personalized user experiences, and greater data transparency.
Embracing first-party data over third-party data management strategies help businesses to create powerful digital experiences for their customers that are tailored for each individual along with increased control over accuracy and relevance.
First party is the new third party
Utilizing first-party data can provide companies with deep insight into their customers, allowing them to tailor marketing and messaging to their target audiences more effectively. In today’s age where end-to end digital transformation is the new normal, first party data management strategy plays a vital role in driving success and data visibilit, enabling businesses to build better customer relationships and more personal customer experiences.
Research shows that nearly half of the digital marketers have embraced first-party data to gain customer insights, while an additional 41% are shifting from third-party data to first-party data. First-party data helps companies understand their customers' needs and preferences so they can develop more effective and engaging business outcomes.
What’s more? Leveraging first-party data also gives companies the control they need to ensure they are compliant with all relevant data privacy regulations, such as the GDPR. Shifting from third-party data to first-party data can help businesses create a comprehensive first-party data strategy from which they can understand their customers better.
By utilizing first-party data, companies can collect, analyze and store first-hand customer information and use it to create tailor-made marketing campaigns. Using first-party data helps build customer trust by showing them that their personal information is safe and secure.
This helps companies deliver a better customer experience while building trust with their customers, leading to increased customer loyalty and long-term growth. By leveraging first-party data, companies can gain powerful insights into their customers through data analytics, enabling them to create personalized experiences that keep customers coming back.
Shifting from third-party data to first-party strategy: quick steps to follow
Shifting from a third-party data strategy to a first-party data strategy is indeed a smart move for businesses aiming to deliver frictionless customer experiences with greater control over their data. However, there are some important points of consideration that every business must keep in mind to make their first-party data strategy more effective:
- Identification of first-party data sources: Start by determining which data sources you already have access to, such as customer data from your website or app, transaction data, customer service data, and other internal data sources.
- Evaluate your data quality: Once you've identified your first-party data sources, evaluate the quality of the data you have. Make sure it's accurate, up-to-date, and relevant to your business objectives.
- Develop a data governance plan: Establish guidelines for how your data will be collected, stored, and used, as well as who will have access to it. Ensure that you comply with relevant data privacy regulations.
- Use data to create personalized experiences: Leverage your first-party data to create more personalized experiences for your customers. Use customer data to tailor messaging, offers, and recommendations to their specific needs and preferences.
- Invest in data analysis tools: To fully leverage your first-party data, invest in data analysis tools that allow you to analyze and derive insights from your data. This can help you better understand your customers, their behaviors, and their preferences.
By focusing on first-party data, businesses can build stronger relationships with their customers, improve the quality of their data, and gain greater control over their data strategy. It takes time and resources to make this shift, but it can pay off in the long run by providing a more personalized experience for customers and a competitive edge for the business.
Accelerate the first-party data enabled transformation journey with Kellton
Are you planning to execute a first-party data strategy to improve your business continuity and deliver a more personalized user experience at every touchpoint? Navigate a brave new third-party data-less world at speed with Kellton's intelligent data analytics capabilities and gain a competitive edge using real-time, first-party data.
As your strategic partner, we elevate the human experience at every interaction through a seamless transition from third-party to first-party data. Also, we strategically combine Kellton's deep industry expertise, advanced data analytics capabilities, and human-centered approaches together to streamline the collection of omnichannel data insights using real-time personalization and intelligence in a tailored way. All in all, we help minimize the impact of the much-hyped cookie apocalypse by building a first-party infrastructure with zero dependency on third-party cookies.