Data is everywhere. Everything we do online creates data, our own personal folder tracking what we see, do and even how long we spend hovering over something. It can sound pretty scary when we really think about how our phones and computers probably know a lot more about us than our family or friends…
Anyway, we digress.
If you work for or own an ecommerce business, data is everything. It can provide you with detailed insights into your customers, their behaviour and how they interact with your business. It’s all great stuff, but only if you use it correctly.
First-party data is particularly important as this is the information your company collects directly from your customers. The best part? You own it. Therefore you can use it to the benefit of your business.
Breaking Down First-Party Data
As above, this is data you collected and is owned by you about your customers. It contains information on your customers’ interactions, behaviour, purchase history and more. This information can then be used to create ads, tailored content and experiences that are personalised for your customers.
We all know that it is often in a brand’s best interest to retain customers rather than spend more money on finding new ones. They have interacted with your brand before so you already know they are interested. You also already have that first-party data stored, meaning it’s a lot easier to target them with an ad than it would be with a new customer.
Let’s look at how that works. Say you are looking to target a new customer base with an ad but you’re unsure who exactly you want to show the ad to. You choose to spend money on gathering some third-party data, which may also have been sold to your competitor. You publish the ad to the random consumers obtained from the third-party resources, cross your fingers and hope for the best. Maybe a handful will see it and feel it’s relevant to them. It could work but it might not. It’s a bit of a gamble.
In the meantime, you could be analysing the first-party data you already own and creating personalised ads for your existing customers. You have more knowledge of this audience, so you’re more likely to convince them to make a repeat purchase. Plus, you’re not having to spend extra cash on third-party resources.
Let’s not also forget that customers love carefully crafted, personalised experiences. They improve brand loyalty and retention, increasing that LTV.
Where Does First-Party Data Come From?
Before we get into more detail on how you can use first-party data, we should really understand what it is and where it comes from.
Essentially, whenever a customer interacts with your brand across any touchpoint, that interaction is logged. All of this information then provides you with an overview into what type of products your customer is interested in, what content engages them the most, what time of the day they tend to interact etc etc. It’s a vast amount of information that the consumer entrusts you with. They do this so you can provide them with great products and services that match what they are looking for, which is why it’s essential you use the data you have correctly.
We should also acknowledge that the places we are engaging with our customers is increasing dramatically. It may have just been a website initially but we now have various marketplaces, social channels and email marketing to keep track of. Having all the information on your customer in one place is key but you’ll need to integrate a tool to be able to do that.
How to Use First-Party Data
The best way to have full control over your customer’s data is to integrate with the right tools. Below is a list of some of our partners who all offer great platforms to create personalised experiences and manage your customer information.
Algolia
An AI end-to-end Search and Discovery Platform combining powerful keyword and natural language processing in a single API.
Searchspring
Delivering intelligent shopping experiences with search and merch tools that elevate your ecommerce game. Understand your shopper with powerful ecommerce reporting and insights.
The key benefit to all of these tools is that you can utilise the data you own about your own customers to further their experience, increase brand loyalty and boost your sales.
