What Does First-Party Data Strategy Mean?

How First-Party Data Drives Growth in a World Blocking Third-Party Data


First-Party Data Strategy – Defined

You may have encountered this article in a quest to understand what first-party data is, and whether or not you should have a first-party data strategy.  Here goes…

1st-party data is data you collected yourself.  Here are some of the most common examples:

    • Name
    • Address
    • Phone
    • E-Mail
    • Website Data
    • Phone Logs
    • Purchase History

You probably get the idea.  But it’s important to think of this as an asset of your business you can use to gain growth and ROI.

Google estimates that brands using first-party data for key marketing functions achieved up to a 2.9X revenue lift and a 1.5X increase in cost savings.

The Attack on Third-Party Data – Explained

You may have heard that Google is no longer supporting third-party data in the form of cookies.  Cookies are in essence little trackers that have helped marketers develop audience targets by watching on-line behavior.

Those days are over.  And marketers have been forced to consider other methods of targeting, such as context, location, and even search history.

From our view, though, 3rd-party data was often most heavily relied upon by less scrupulous marketers and certainly by bad actors who ran scams and other one-sided efforts that weren’t good for consumers.  It’s a classic case where bad apples spoiled the bunch.  Third-party cookies had the POTENTIAL to make advertising more relevant for consumers; but greed messed it up.

Do You Need a First-Party Data Strategy?

Back to why you came here for this article…

Do you need a 1st-party data strategy as part of the marketing plan for your business?

Well, chances are you’ve already got one.  It’s just a matter of figuring out what it is, whether or not it’s adding value to your business, and whether or not it can.

First-Party Data You’re Already Collecting

Do an inventory of the 1st-party data you’re collecting.  Really dig, too.

Most of us are collecting data we don’t even realize we’re collecting.  Here are some common sources of good, usable data:

    • Point Of Sale
    • E-Mail Newsletters/Databases
    • Website Analytics
    • VoIP Phone Logs
    • Shipping Logs
    • Paper Records & Files
    • Loyalty Systems

What You’re Doing with That Data

Is this data just sitting there?  Or are you using it to grow the relationship with each of those prospects and customers?

Often, quality first-party data is just sitting, collecting either digital dust or actual dust in a file cabinet.

During the pandemic lock-down, we pivoted several of our clients to be able to use first-party data to flip entire business models to outbound sales via phone, e-mail, and text.  Without the ability to act on 1st-party data, some of our clients would have shut down completely.

What the POTENTIAL of That Data Really Can Be

The first-party data you’re collecting on your website traffic, most often via Google Analytics, can be leveraged to grow your business.  Most customers don’t buy or become an actionable lead until the 2nd or 3rd website visit.  Placing website visitors who don’t “convert,” meaning they don’t call or give information that makes them an actionable lead, into a re-marketing audience and continuing to advertise to them increases the odds they’ll convert later by up to 300%.

That’s just one practical example.

Who needs third-party data when you’ve got powerful capabilities like that?

Let’s Chat

If you know enough to know that you’re not making the most of first-party data to grow your business, but you don’t know exactly what to do differently — let’s chat.

We offer a free initial marketing consultation.  It’s just one way we invest in our clients long before they invest in us.

Take advantage of a no-risk, no-obligation introduction call.

Previous articleWhy Is Digital Footprint Important for Businesses?
Next articleHow Google Discover May Impact Content Marketing
Steven Ludwig
After 3 decades as a professional marketer, serial entrepreneur and business consultant Steven Ludwig shares his best practices for small business marketing for owners, managers, and marketers with limited time, money, and expertise. Steven started his professional marketing career in broadcasting in the early ‘90s in Chicago after attending Valparaiso University. After a brief stint at an advertising agency specializing in entertainment and sports marketing where he worked with radio and television stations, movie theatre companies, record labels, musicians, and professional sports teams, he moved to Nashville to form The Marketing Group with his long-time business partner, Jim Wood. Having worked with some of the largest brands in the world, in 2010 he returned to local marketing primarily out of an interest and excitement for working with small business owners to build stronger companies. That desire comes out of early days in radio, where he worked closely with everything from car dealerships to restaurants, insurance and real estate agents, banks, home services companies, and specialty retailers of all kinds. Over the past decade, he has been on the bleeding edge of digital marketing technology, constantly seeking to understand complex strategies employed by giant corporations and then translate those capabilities into tactics small businesses can execute at a local level. Today, in addition to other business ventures with his wife and other long-time business partners, he still lives outside Nashville in Franklin, Tennessee and currently serves as Executive Chairman of EmpowerLocal, a digital marketing company building a nationwide network of digital, hyperlocal news and lifestyle publishers to provide efficient advertising opportunities for local, regional, and national brands.


Please enter your comment!
Please enter your name here