First-party data is beneficial for marketing because it provides a real, reliable view of the customer: with its own data, the company can work to retain consumers or use resources like look-alike audiences to expand its reach.
Furthermore, first data is the most secure data a company can have. As it is proprietary data, it is possible to ensure that its capture and use comply with the latest data protection laws (LOPD). Another advantage is that it shows the customer's relationship with the company's product.
According to a Sizmek survey , 85% of US respondents say vatican city business email list increasing the use of first data is a priority.
But how do companies use them? Let's look at an example:
By understanding consumer behavior within their platforms, YouTube, Netflix, and Spotify can recommend content that is linked to the pattern of consumer history. In this way, they provide their users with a highly personalized service.
First-Party Data vs. Third-Party Data
You've probably heard of first and third party data. What's the difference?
Third-party data is typically aggregated, segmented, anonymized, and purchased data from companies other than the original collectors of that information. Marketers, for example, often use it for advertising and retargeting purposes.
However, third-party data is not collected from an audience similar to yours and is also available to your competitors.
Third-party data is often used to enhance original data by showing the consumption habits of a particular customer profile to map their purchasing journey, discover new audiences or increase targeting accuracy.