Data privacy is important to consumers. Alongside cybersecurity threats and data breaches, the widespread adoption of artificial intelligence (AI) by companies is making customers more nervous about the security of their data. Therefore, the collection of first-party data has become essential. 

Research by Publishers Clearing House found that 86% of Americans are more concerned about their privacy and data security than the state of the US economy. However, two-thirds either don't know or are misinformed about how their data is being used.

There are now protective measures in place when it comes to processing customer data. Due to the change of privacy features on Google (after a u-turn on phasing out third-party cookies) and regulations such as GDPR and CCPA, marketers need new and better ways to capture customer information – enter first-party data. 

What is first-party data?

First-party data is information you collect from your audience through your owned digital channels. This makes it reliable and issue-free, as people have consented for you to use their data to make contact and engage. Other data types, such as second-party data and third-party data are not collected directly from your customers, but are indirectly obtained from other sources. 

Sources of first-party data include:

• Website or app behavior
• Email and newsletter subscribers
• Lead generation campaigns
• Surveys
• Social media
• Subscriptions
• Customer feedback
• Customer service/sales conversations
• Online chat

Through these channels, you can gain insight and leverage customer and business data. 

Types of data include demographics, website activity, email engagement, sales interactions, feedback and purchase history along with returns information and stock levels.

What are the benefits of first-party data?

As first-party data is owned by you, and you alone, it is accurate, privacy compliant and offers great insights into your audience. This means that it offers many benefits which include:

• Personalization and integration
• Target the right customers
• Accuracy and control
• Strengthen customer relationships
• Compliance with data privacy laws
• Transparency
• Lower cost

It also leaves your competitors in the dark about why you choose to do certain marketing activities or try new tactics. Where previously anyone could access the same data through third-party sources, only you have insight into your customers’ preferences and behaviors.

How is first-party data collected?

There are many ways to collect first-party data. As you see above, there are a variety of channels that users employ to input information.

You can track users across your website/app and social media profiles by adding a pixel about their actions and activities or using a tracking tool like CrazyEgg. 

By using this approach, you can track: 

• What pages people visit 
• Interactions they make 
• Topics they are interested in (for example, what blogs they read) 
• Information such as IP address, preferred language, timestamps, and visited URLs

All this information should feed into your Customer Relationship Management (CRM) platform to create a database of anyone that has visited your owned assets. Over time, this will help you build a picture of who that user is so you can target them with relevant information that’s more likely to convert.

You should also think about what first-party data you want to collect at what stage in the customer journey. 

For example, at the top of the sales funnel or awareness stage, look to get personal information from a subscription or social lead gen form. At the middle of the funnel or consideration stage, webinars may prove useful in gathering data or looking at purchase behavior to gain insights. While at the bottom of the funnel or decision making phase, use demos, free trials or sales decks.

What are the challenges to collecting first-party data?

While there’s huge value in first-party data and a growing importance in collecting and using it, many companies are struggling to unlock its potential.

According to Adobe research, 75% of marketing and CX leaders still rely heavily on third-party cookies. Additionally, 83% of leaders at cookie-dependent companies say that just under a third of their total potential market is in environments where third-party cookies don’t work, such as social media and on Apple devices.

The main barriers to collecting first party data are:

• Difficulty in linking technologies (CRM, email platforms or GA4)
• A lack of understanding of data
• Disconnected and fragmented data 
• Lack of touchpoints to engage consumers (e.g. email, social media, customer loyalty programs)
• Internal skill gaps or a lack of analytical skills
• User experience friction

It’s not just Google cracking down on data privacy. Safari uses ‘prevent cross-site tracking’ to limit third-party cookies and prevent them from creating detailed user profiles, while users can also delete cookies through their browser settings. Firefox blocks third-party cookies by default using its “Enhanced Tracking Protection” feature, but plans to remove the ‘Do Not Track’ toggle from its settings by 2025, claiming it was because “nobody was listening”, reported SAP.

Don’t let your company fall prey to these barriers. Ensure your data can be linked and shared across the company and that you have the necessary talent to analyze and use the relevant data in a way that focuses on and enhances customer experience and delivers a return on investment (ROI).

What can you do with first-party data?

When used correctly, first-party data can be a goldmine for your brand. It provides you with accurate data that can help target the right people to enable better personalization.

Brands using first-party data for marketing have achieved a 2.9X revenue lift and a 1.5X increase in cost savings, according to CMS Newswire. That’s no small feat, considering that the top challenge is ‘delivering greater ROI on the marketing budget’, according to our research with marketers at all levels.

But, before you start using your first-party data, think about what you want to achieve:

• Are you looking to build brand awareness? 
• Do you want to re-engage lapsed customers?
• Are you looking to generate more leads? 

By understanding what your goals are and what you’re trying to do, you can use your first-party data more effectively.

How to maximize your first-party data collection

It’s all well and good knowing about first-party data, but how are you going to generate it? 

Here are a few simple ways to collect more first-party data to expand your reach and increase  targeting opportunities:

• Use more lead generation forms – Social media is a good place to start as people are very active across platforms. For example, Facebook is good for targeting Gen X, Millennials and Baby Boomers. Instagram is the top platform for product discovery and Gen Z’s top social app, according to Sprout Social’s 2025 Q2 Pulse Survey. LinkedIn is a great network for B2B leads, but B2C brands can also benefit.
• Re-engage lapsed customers or non-converting prospects – Use a tailored email shot to users on your CRM tool. You can offer a discount or free download to hook people back in. You can also leverage an email newsletter to re-engage and share news or updates.
• Review and tweak your forms – If you use forms on your website, app or social media, review them to see if you can include questions that get clearer information on a prospect, such as job role or company size.
• Experiment with more channels and platforms – There are many great platforms and channels out there to try, including alternative social media channels. For example, does your company use Reddit or WhatsApp, or have you tried Twitch? Figure out what channels your audience may be active on and try out a campaign.
• Leverage AI – Use AI tools and platforms to enhance data collection by using chatbots, dynamic forms and predictive opt-ins. AI can also help enrich first-party data through behavior prediction such as analyzing click streams or purchases. It can also analyze customer emails and chats to extract structured first-party data (e.g. sentiment or product mentions) and is useful for segmentation to drive hyper-personalization and ad targeting.

It should be easy to generate more first-party data by doubling down on the channels you currently use along with trying out new ones.

Seven productive ways to use first-party data

1. Personalize emails – Segment your audience and create customized emails or email newsletters that are relevant to that segmented group. If you’re struggling to create engaging content, check out our email and copywriting checklist.
2. Tailor landing pages – A/B test using customer data on your landing pages to see which message resonates amongst a particular audience. Use our A/B Testing Toolkit to follow a structured approach to testing.
3. Customize paid ads – Target distinct personas through paid advertising across channels.
4. Target social media – Create tailored content in a variety of formats (e.g. blogs, videos, ebooks) that will speak to your audience segments through a variety of social media channels, in organic and paid social posts.
5. Leverage loyalty programs or membership – Offer early-bird access to sales, discounts or free content (e.g. a relevant eBook).
6. Use account-based marketing – If you’re a B2B marketer, use this data to create relevant and personalized content and target potential clients across digital channels.
7. Conversion rate optimization – Use data insights to improve conversions on your website by optimizing UX, optimizing messaging, using buyer personas to understand your customers and use SMART goals.

Brands who use first-party data effectively

1. Saks Global – Leverage AI

A brand using AI effectively to collect and use first-party data is the luxury retailer Saks Global (this includes Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman).

According to Vogue Business, in 2024, the retailer launched the Saks Media Network, which helps brands advertise across the Saks shopping journey by leveraging first-party customer data.

By using browsing behavior from a 30 million strong customer base, Saks created tailored homepages that delivered a 7% increase in revenue per visitor and nearly 10% higher conversions. There are plans to extend this across all brands.

2. Instacart – Transparency and trust

In light of changes to data collection and pressure from regulators, grocery technology company Instacart has taken a conservative approach to using first-party data to embrace transparency to build customer trust.

“We’re very clear about the nuts and bolts of privacy, so consumers understand that they can opt out of having their data used. For users that remain opted in, we strive to make the ad experience highly relevant to what the person is searching for or browsing,” Ali Miller, Vice President of ads product at Instacart, told the Wall Street Journal. 

To do this, the company uses anonymized first-party behavioral and transactional data in and off-platform to deliver personalized ads and suggestions — like AI-curated item carousels, while maintaining privacy and transparency. 

3. Hobbii - Segmentation based on behavior

Global e-commerce brand Hobbii sells yarn and craft supplies and is known for its creative community and pattern-based marketing.

But the brand felt like they were missing out by not linking their data and content marketing – particularly through email, as their newsletter strategy lacked segmentation, which led to over-messaging and missed revenue, reports SAP.

By linking pattern downloads (first-party data) to customer profiles and creating real-time behavioral segments (e.g. knitters vs. crocheters), the company fed this data into automated journeys with personalized offers and tutorials.

As a result, 1.1M customers enrolled in the ‘My Hobbii’ loyalty program, and 20% of revenue came from those personalized automations.

What’s next for marketers and first-party data?

The move away from third-party cookies has forced companies and marketers to look at alternative data sources. Despite Google no longer planning to get rid of cookies on third-party sites, marketing teams realize the importance of first-party data in an effort to ensure data privacy.

According to an eMarketer study, 67% of US adults will turn off cookies to manage their online privacy, thus reducing third-party dependence is worthwhile.

So, while the past few years have seen companies focus on collecting first-party data, the future is now about how to use it effectively to engage and convert customers.

Here are some simple and effective ways for companies to prioritize and leverage first-party data: 

• Audit data – There’s no point leveraging data that’s inaccurate or no longer valid, so it’s important to perform a data audit to clean and clear your data. Once you’ve done this, create a roadmap for capturing and using first-party data.
• Build a data ecosystem – Use common keys such as email addresses and phone numbers, to integrate data from various sources, including ecommerce and CRM platforms along with web and app data.
• Invest in infrastructure – CDPs, server-side tagging, consent management tools.
• Build direct customer relationships – Leverage loyalty programs, newsletters, and communities.
• Focus on data quality over quantity – Enrich profiles with fewer but more reliable signals.
• Test and learn – Run experiments with attribution models, clean rooms, and API integrations.
• Educate and train teams – Build org-wide data literacy, especially around privacy and consent.

Marketers today need to improve their customer experience by knowing more about their customers. First-party data could be the answer to that.

Being able to combine first-party data with other data sources will give you greater insights into your target audience. You should also look into zero-party data as a way to get valuable marketing data that’s given willingly by customers.

Source: Digitalmarketinginstitute.com