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Everything You Need to Know About First-Party Data

January 13, 2023

When it comes to running an online business, data is one of the biggest focuses. How you collect it, how you use it, and how much you spend on data can make or break your business. With first-party data, you have an opportunity to maximize your retention marketing. You’ll learn your users better, lower your data collection costs, and gain more flexibility.

In this guide, you’ll learn everything you need to know about first-party data. You’ll learn what it is, how it works, why you should use it, and how to implement it.

first-party data

What Is First-Party Data?

First-party data is any data that you can collect directly from users. This data could be collected while they browse your site, interact with your social media accounts, use your app, or fill out a survey from you.

There are also second-party and third-party data, and both of those include another degree of separation. First-party data is the only case where you get the information directly from the user through your own channel.

Second and third-party data entail paying another company for the data. In this case, the company you’re buying it from either gathered it as first-party data or paid another company that did.

first-party data

Benefits of First-Party Data

There are a lot of reasons to opt for first-party data. Whether you run an online business or an eCommerce company, this type of data can help a lot.

Control How, What, and Where You Get the Data

The biggest benefit of first-party data is all the control you get. Since you’re setting up how the data is captured and ultimately using the data on your own, you’ll get more flexibility.

You can choose to collect very specific pieces of data from users when they access your site in a specific way. This can be molded to perfectly match the requirements of your company.

What you later do with the data is entirely up to you. Since this is a lower-cost option of getting data, there’s less pressure to use the data.

Segment Your Data

Another benefit of collecting your own data is your ability to segment it. Segmenting is the act of breaking data down into types, then categorizing and lumping data together.

With segmented data, you get a better picture of what’s going on. In addition, you get a more complete image of who your user is.

If you understand your user better, you can optimize your retention marketing campaign. Use the data to focus on what appeals to the user. Target them at specific times, and use specific websites that align with the profile you built based on your first-party data.

Lower-Cost Option

Every time you add another party, the price goes up. Buying third-party data is significantly more expensive than first-party data.

With first-party data, you’re getting the lowest cost option.

Understand Your Shoppers Better

The bottom line is that first-party data helps you to understand your shoppers better. In the online marketplace, data is the key to unlocking bigger profits and more sales.

It’s easier to sell something if you know the potential buyer very well. If they’re a stranger, it’s harder to convert them.

Data allows you to become familiar with your shoppers.

first-party data

How to Use First-Party Data

Knowing the benefits of first-party data is just the first step. Next, you’ll need to know how to use the data to your advantage.

Optimize Your Targeting Campaign

One of the most effective ways to use first-party data is through specific targeting campaigns. In these campaigns, you’re reaching out to very specific people that meet your demographic and target audience.

If you sell cat food, it helps to target people who own cats. With first-party data, you’ll be able to find users who own cats, find out other interests about them, and combine them into a more successful targeting campaign.

This is just one example of how targeting works better when you have first-party data in your corner.

Customize Your Automatic Emails

Automatic emails and marketing campaigns offer the benefits of marketing without the need to spend time and resources putting it together.

With these emails specifically, it’s easy to make a mistake and create emails that are too vague and not personal enough. With first-party data, you can create customized messages for all of your recipients.

Again, you’ll be using the information you learned about the user when they browsed your store. Appeal to their interests in an effort to convert them.

Re-Engage Your Audience

The same is true for an audience that you need to re-engage. After some time after buying from you, you should send another message and entice them to shop with your store again.

With first-party data, you can build up a more complete list of users. This goes beyond just their name and payment information — you can compile data that allows you to specifically re-engage with each user.

When an email feels personalized and targeted, the user is more likely to follow up and engage with your company again.

Boost Your Brand’s Trustworthiness

At, the philosophy is to use retention marketing in junction with your brand’s strengths. For many, trustworthiness is one of the leading focuses of an online business.

After all, there are so many suspicious sites online. To be trustworthy means that people can shop with you without fear and that typically translates to more money.

First-party data always starts with an interaction between the user and your site. They will specify which data they want to share.

Doing this shows that you care about your user’s comfort. If they don’t want you to access their cookies, then they can un-check the box and trust you more.


Understanding first-party data is a great way to start making more money and converting more users. This form of data is captured directly from the user as they access your site. It’s low-cost, flexible, and very valuable for your retention marketing.

If you need a high-quality retention marketing solutions provider that helps you use first-party data to grow your business, you can turn to Our team will help you understand and implement data that can boost your sales.

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