There are many different types of data and many more ways to use that data to find insights and move the needle forward. With the increased regulation on some sources of data, it has been more confusing than ever navigating the consumer data landscape. First-party data is one of the best and most reliable sources of consumer data. So, what is first-party data and why is it important?
What is First-Party Data?
First-party data refers to data that is collected directly from a company’s own customers and is typically obtained through interactions on the company’s own website or app. This data is considered highly valuable because it is obtained directly from the source and is therefore more accurate and reliable than data obtained from other sources.
In contrast, second-party data is data that is shared by one company with another, typically through some form of partnership or collaboration. This type of data can be useful for companies looking to expand their customer base or gain insights into a particular market, but it is not as reliable as first-party data because it has been collected by another company and may not be as accurate or up-to-date.
Why Should My Brand Implement First-Party Data Collection?
Overall, first-party data is considered the most valuable type of data because it is collected directly from the company’s own customers and is therefore more accurate and reliable than data obtained from other sources. Companies can use this data to better understand their customers and tailor their products and services to their needs and preferences. Additionally, first-party data is generally more private and secure than data obtained from other sources, making it a valuable asset for companies looking to protect their customers’ personal information.
Another one of the big reasons brands should move away from third-party data and more towards first-party data is the end of third-party cookies. Because of the CCPA, GDPR and other consumer privacy regulations, websites are required to notify visitors it is using cookies as well as give them the choice to completely opt out. Firefox and Safari have already done away with third-party cookies with Google Chrome slowly phasing out cookies. With third-party cookies being phased out, the access to third-party data becomes more and more difficult to obtain.