In the age of big data, it’s easy to get lost in all of the information that’s out there. But as a marketer, you can’t afford to ignore any of it. Data-driven marketing is essential to success in today’s landscape and first-party data is at the top of the data pyramid. It is a valuable asset to help you better understand your customers and create more targeted marketing campaigns.
In this piece, we look at the top ways that you can collect and use first-party data to grow your business.
What is First-Party Data?
First-party data is information you collect about your customers and prospects through your channels. This data is unique to your business and can give you insights into your customers’ behaviours, preferences, and motivations. You can collect first-party data through various channels, including your website, contact forms, customer surveys, and more.
With Google’s recent announcement that it will be phasing out third-party cookies in late 2023, first-party data is more critical than ever for marketers. Google and other advertising platforms use third-party cookies to track users’ online activity and target them with ads. But with Google’s new initiative, these cookies will no longer be supported. This means that marketers will need to find other ways to target their ads, and first-party data is the perfect solution.
How to Use First-Party Data for Marketing
There are several ways to use first-party data to improve your marketing efforts. Here are some of the most effective ways:
Improve your website design
Use first-party data to understand how users are interacting with your website. This information can help you optimize your design for better conversion rates. For example, if you see that users are abandoning your website at the checkout page, you can make changes to streamline the process and reduce friction.
Tools such as Hotjar can help you track user behaviour on your website. These tools will show you where users are clicking, how long they’re staying on each page, and their actions. You can use this information to make design changes, to improve the user experience and boost conversion rates.
Build targeted marketing campaigns
By segmenting your audience based on interests, behaviours, and demographics, you can create messages that are more likely to resonate with each group. This will result in higher conversion rates and more engaged customers. For instance, if you have a segment of customers interested in eco-friendly products, you can create a marketing campaign that highlights your sustainable practices.
To segment your audience, you can use a tool like Google Analytics to create custom reports. You can then plug this data into your marketing automation software such as HubSpot or Marketo Engage by Adobe. This will allow you to create targeted email campaigns, ads, and social media content for each segment.
Personalize your communications
Personalized communications are more likely to grab a person’s attention than generic messages. And with first-party data, you can customize your marketing communications to each individual.
For example, if you have a customer’s purchase history, you can send them recommendations for products that complement what they’ve already bought. Or, if you know someone’s interested in a specific topic, you can send them articles or blog posts related to their interests.
You can also use first-party data to send birthday messages, anniversary offers, and other personalized communications to build customer loyalty and encourage repeat purchases. Apps like HubSpot and Mailchimp offer features that allow you to automate personalized communications.
Improve customer support
By understanding how your customers use your product or service, you can provide them with better support. This will lead to happier customers and fewer support issues in the future.
For example, suppose you see that a particular group of users is struggling with a specific feature. In that case, you can create documentation or tutorials that will help them use it more effectively. Alternatively, if you know that a customer is using your product in a non-traditional way, you can reach out to them and ask how they’re using it. You can use this feedback to improve your product for all users.
Zendesk is a customer support platform that offers ticketing, knowledge base, and live chat features. This tool can help you keep track of customer issues and provide them with the information they need to resolve their problems.
Tools for Capturing First-Party Data
There are many tools you can use to capture first-party data. Here are some of the most popular:
Google Analytics is a free platform that enables you to track website visitors, behaviours, and conversions. You can use this data to understand how users interact with your site and make changes to improve the user experience.
Hotjar is a tool that enables you to track user behaviour on your website through heatmaps, recordings, and surveys. This information can help to improve the user experience and increase conversion rates.
- Basic: Free
- Plus: $31 per month
- Business: $79 per month
- Scale: Customizable
Mixpanel is an analytics platform that enables you to track user behaviour and engagement. It offers features such as funnels and retention analysis. This is great for understanding how users interact with your product.
- Free: Free
- Growth: $25 per month
- Enterprise: Customizable
HubSpot is a marketing automation platform that offers email marketing, social media, and lead management features. It also has a free CRM tool. You can use it to segment your audience and create targeted marketing campaigns.
- Starter: $45 per month
- Professional: $800 per month
- Enterprise: $3200 per month
Marketo is a marketing automation platform that offers email marketing, lead management, and social media features. You can use it to create targeted marketing campaigns and track their performance. They have four different plans, and pricing is based on the database size.
First-party data is the future of marketing. Understanding how your customers interact with your product or service can provide them with a better experience and encourage them to become loyal, repeat customers. You no longer need to second guess what your customers want—you can ask them directly.