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First-Party Data Marketing: 3 Powerful Use Cases

Max Panych

Max Panych


Marketing has undergone a dramatic shift in its approach and implementation. Gone are the days when it was solely based on assumptions or speculations.

Now, marketing is based on reliable and authentic customer data, which is now central to any successful marketing approach. A data-driven marketing approach enables you to effectively target, attract and convert leads into high-paying, return customers.

Data can be obtained from a variety of different sources, each with their own distinct scope and volume. The analysis of consumer information gives you a firsthand view of their needs, desires, and interests. You can use these valuable insights to develop personalized content and advertisements to ensure high returns on all your investments.

Content is king! It will never lose its role as a crucial component in enticing and persuading consumers. It is only when you present customers with relevant content will they be convinced that you have what they need.

Before you can implement a data-driven marketing approach, you need to first adopt the right systems and procedures to collect, store and analyze your consumer data. In this article, we are going to be discussing three (3) powerful cases on the use of First-Party Data in marketing.

An overview of first, second and third-party data

Before we proceed with the case for first-party data optimization, it is important for you to understand the other common sources of consumer data.

  • First-party data is information on your customers and existing audience which you collect directly. This data typically comes from several sources like your CRM system, subscription programs, point of sale, web analytics tool, etc. First-party data usually requires your customer’s permission to collect their information.
  • Second-party data consists of information another company collects directly from its own customers. This data is usually sold to a trusted partner without a middleman. Second-party data is typically known for its quality and considerable scale.
  • Third-party data is data obtained from various external sources by a broker and sold to different companies and brands. The wide-scale and large volume of third party data make it appealing to a lot of companies hoping to expand their target audiences. However, there are some disadvantages to its use, including:

Lack of transparency and accuracy

As you may know by now, third party data is the outcome of aggregated data forms from a variety of sources such as surveys, websites, subscriptions, and social media platforms. Unfortunately, there is little or no transparency over the collection process of the aggregated data that constitutes third party data. Additionally, excessive projections and lookalike modeling raises serious concerns over the data’s accuracy, quality and value.

Privacy concerns

A significant amount of data breaches are caused by third-party data relationships. This has made web users increasingly reluctant to share their personal information on online platforms or with Advertisers. With alarming reports of cyber attacks, web users now rely heavily on ad-blocking software and tools that allow for an ad-free, private and secure browsing experience.

Stringent laws governing its use

Ever growing threats to customer data has forced governments to introduce stringent laws governing the collection, transfer, and storage of consumers’ data. Not to mention the tough penalties for non-compliance or violations. This makes the collection and use of third party data rather difficult. Perhaps it is time for you to modify your digital marketing strategy and prioritize the use of first-party data.

Main benefits of first-party data

There is no denying the value of first-party data given the fact that you collect it directly from users who have had an interaction with your brand. First-party data is also cost-effective as you spend little or less money putting the relevant systems in place for its collection.

According to the results of a survey by, a huge percentage of marketers are gradually coming to recognize the value of first-party data. This in part is thanks to its relevance, high quality, and accuracy. This is a strong indication of the ability of first-party data to provide you with greater customer Insights and prompt engagement with your brand.

Another great benefit of first-party data is its association with increased data privacy, as its collection requires some form of consent from your customers. It is also relatively easy to convince your customers to share their information with you since they understand how you will use their data to serve them better.

Three (3) practical cases for the use of first-party data in marketing

The case for using first-party data in your marketing efforts is reliable in its implementation and effective in its results. In an increasingly competitive landscape characterized, you must leverage relevant and valuable data sources to inform you of actual consumer expectations.

Without further ado, below are the top three (3) practical use cases of first-party data in your marketing and advertising efforts.

  1. Personalized and automated email marketing:

Personalization is an essential factor that can either boost or limit your marketing efforts. This is because targeted personalization can significantly enhance your customer’s experience, increase their engagement with your brand and most probably result in a purchase.

First-party data helps to foster targeted personalization. This is because it provides you with real insights into a user’s interest or past behavior on your platform. Using this behavioral data, you can develop an automated email marketing campaign whereby you send relevant messages that satisfy your user’s interests and trigger conversions.

Personalization of emails using first-party data has been tested and confirmed to increase click-through rates (CTRs), revenue generation and returns on investment (ROI).

  1. Onsite Personalization:

The personalization of certain areas on your website to satisfy the needs of your audience by serving them tailored messaging cannot be achieved using third party data. This is mainly because the task requires reliable data on your existing audience and users. However, this is a great example of how first party data can provide you with factual data you need on your audience.

Using this insight, you can divide your audience into specific segments and deliver content that suits their needs. The use of personalized content has been found to be much more effective in improving any marketing approach.

  1. Dynamic Creatives:

Third-party data is the product of data aggregated from different sources, thus making the information it provides generic which is not effective for dynamic product retargeting. Fortunately, first-party data allows for a more granular level targeting strategy as the dynamic ad includes a message based on the user’s specific data.

Hi, I'm Max Panych

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Max Panych

Hey I’m Gael, one of the guys behind Authority Hacker. I make a living working from my laptop in various places in the world and I will use this website to teach you how you could do the same.