1st Party Data
1st party data is data about a business’s customer base gathered by the business itself.The business decides what kind of data is gathered, the manner in which the data is collected, and the verification level of the data. Since the business itself is collecting the data, the business is the sole owner of the customer data it collects. 1st party data can be collected by a business by tracking in-store purchases, website platforms, apps, mail-in material, surveys, and more. 1st party data is generally comprised of your customers’ demographics, purchasing trends, and actions/interests. 1st party data gives you in-depth, detailed knowledge about your customer base. 1st party data is often overlooked during marketing campaigns. Business and company owners generally look ahead, wanting to constantly add new customers to increase profit. This can be a fatal long term mistake. Has anyone ever recommended to you that you should touch home base every so often to reconnect with yourself before moving forward? 1st party data is like your home base in the marketing world, because it is a collection of data on people who already like your product or service. Having a customer database means that you have a collection of people of different backgrounds, life experiences, and interests that have a common denominator- they like what you are selling. Start your marketing campaign with something you should know- your customers. Find out commonalities for each of your customer segments. Why did your customers choose your business? What makes your customers buy from you again? Split your known customers into categories that you can successfully target when reaching out to other potential prospects. Are more young people buying your product than older people? Is that because your product is more appealing to a younger crowd- or is it because your ads look fun and cool? What if the real reason you have younger customers is because your business advertisements are sent to a college town. Could you open up a new market segment by being more inclusive or do you want to maximize what seems to be working? There’s a lot of questions to think about. The good thing about first party data is that you can analyze the data extensively without much pressure. Once you’ve felt like you have mastered your 1st party data, you are ready to move on and learn about your 2nd party and 3rd party data acquisition options to improve your marketing campaign.