A retailer’s guide to first-party data

First-party data offers valuable insights and connections that can drive business and boost loyalty. This guide takes a look at the definition of this type of data, the benefits for retailers and 5 steps to make the most of the information you collect.

What is first-party data?

First-party data is information that is collected directly from the owner of the data. In the case of retailers, this is typically the consumer. Also known as 1P data, this is the most valuable form of data as it means you are engaging directly with the consumer.

It can include:

• Demographic information
• Email lists
• Time spent on your website
• Clicks on your website
• Customer feedback
• Purchase history

Why do retailers need first-party data?

First-party data means retailers can have a form of direct contact with individuals and appeal to their preferences. When used correctly, this can inspire purchases, grow loyalty and build brand advocacy. 

Many retailers are also benefiting from using first-party data to personalise the customer experience, understanding consumer behaviours and trends and adapting their businesses to align with these.

1. Understand which first-party data you need

The first step is to identify the types of data that you need to collect, versus the types of data that you would ideally like to have.

To understand the most important types of data to collect, begin by identifying which are most effective in meeting your goals.

For example, if you are looking to grow a list of newsletter contacts, collecting names, emails and job titles are likely to be the key pieces of information. Alternatively, if your goal is to understand where consumers abandon sales, collecting data on the amount of time spent on each webpage could be beneficial.

By collecting the most important types of data, you can keep people engaged while collecting the data that you require.

2. Have a method of storing and organising first-party data

Only 53% of businesses have their data in a format that can be organised as required. Make sure you store your data in a way that you can utilise it effectively, add the context you need and use it to align with your goals.

Technology and CRMs can be beneficial in managing and storing first-party data.

3. Offer value in return for data

Very few are willing to give their data up for free, so create value in exchange for data. Examples can include collecting emails to sign up for loyalty programmes, for access to exclusive offers, to subscribe to newsletters, or to download an ebook. You could also collect website behaviour for a personalised experience online.

Consider your target market’s preferences and use these to encourage data collection.

4. Communicate the uses of data

A key aspect of collecting and managing first-party data is clear communication of the purposes of this. Let people know where their data will be used, how it will be used and how it will be kept safe.

Make sure this messaging is clear at the point of data collection, to prevent any misunderstandings.

5. Utilise first-party data in your marketing

Having the contact details of 1,000 loyal customers is great, however if you’re not putting this to use, it has very little benefit. It’s vital to make sure you use this first-party data in a way that will build loyalty, as opposed to encouraging people to unsubscribe.

A popular method of using first-party data is to send communications that align with the original reason they shared their data.

Summary

Retailers that are able to use their first-party data to engage and benefit their customers are those that will be able to benefit most. Remember, offering value is essential, as well as evaluating the success of using first-party data. Alongside offering creative ways to bring value to those that share their data, it is also vital to use first-party data responsibly, making sure you adhere to guidelines at all times.