First-party data is something you capture firsthand from your customers using methods like site activity, purchase history, and customer questionnaires. It is clean, reliable, and bespoke to you.
Unlike third-party data or zero-party data from sources outside yours, which may be opaque regarding accuracy and opt-in status, you can personalize and engage consumer trust with first-party data.
Why first-party data works
- More than 70% of marketers concur that first-party data is paramount to personalized marketing and marketing attribution.
- Companies employing first-party data observe that their conversion rates enhance by up to 30%.
- A strong first-party data approach can reduce customer acquisition costs by 20%.
- Studies indicate that more personalization with first-party data can boost customer retention by 25%.
Real talk with Sharné
You can understand customer behaviors and preferences much better when you pay attention to how they browse your site and use your product.
Let’s talk about getting to really know your customers – and I mean beyond just collecting those basic stats and numbers. As Sharné brilliantly points out, it’s like being a puzzle solver.
Think about it: Every click, every scroll, every feature they gravitate toward – it’s like your customers are leaving breadcrumbs about what makes them tick. By watching how they dance through your website and interact with your product, you’re picking up insights about their habits that no standard survey could capture.
It’s not just about what they say they want – it’s about what they actually do. When you tune into these behavioral signals, you can craft experiences that feel less like a generic template and more like a comfy chair that’s molded perfectly to each user.
How companies invested in first-party data
HubSpot uses first-party data to build genuine customer trust and drive one-to-one marketing. Gathering information directly from its sites, such as site behavior and incoming content, HubSpot tailors its communications to respond to specific user needs, generating higher engagement and improved conversion rates. This initial approach serves its customer relationships and enables robust compliance with privacy practices, setting a standard for data-driven marketing success.
Another success story shared on the HubSpot Community involves a mid-tier B2B company that changed its marketing by adopting first-party data. Instead of relying on third-party sources, the company collated data from site activity, customer feedback, and inbound inquiries. This allowed the company to customize every touchpoint, better segment its audience, and present resonated content. As a result, the company experienced 25% lead conversions and significantly improved campaign performance.
Keeping your data clean
Challenge:
One of the biggest is consolidating first-party data across channels and making it compliant and clean.
Resolution:
- Invest in strong CRM integration software and regular data-cleaning procedures.
- Implement layered data governance policies and obtain clear customer opt-in.
Becoming a first-party data master
- Clearly define your data collection goals and measures.
- Clean and upkeep your customer database regularly.
- Ensure all data-gathering processes are open and compliant.
- Monitor performance measures to gauge the impact of personalization.
