How to Collect First Party Data
As first-party data continues to dominate the landscape of online consumerism, a question many companies and retailers find themselves wondering is how to collect first party data, and what ways are most effective at retrieving this valuable information? As a relatively new concept for the online retail space, there are many organizations and businesses that are still in the dark regarding first party data and what it means for the future of digital purchasing.
Since 2020, consumers have dramatically shifted to online buying, and with this shift questions and concerns over personal information protection have surged. As online purchasing increases, businesses are trying to collect as much insight and data into their market as possible. But, the traditional methods of information collection are starting to show their cracks. Cookies are becoming obsolete and “untrustworthy”, leaving businesses to develop a different way to collect consumer insights: first party data.
So, what is first party data, and how does this relate to future trends in retail marketing?
What is First Party Data?
Up until very recently, third-party cookies were the standard when retrieving useful marketing data for brands and companies to capitalize on. It was a viable marketing endeavor that tracked consumers using cookies, to provide businesses with specific “personalized” information, such as demographic information. However, with the increasing priority of data privacy and shifting online buying habits, third party cookies have gone by the wayside, and first party data has become the new standard form of data collecting for retail marketing.
When it comes to first party data collection, most information is received through a direct connection between brand and consumer. Simply put, first-party data is achieved through demonstrated interest in a brand or retailer’s services and products. Through instances like on-site traffic, digital receipts and loyalty programs, brands are able to gather important information about their customers without the invasion of their privacy. By accessing this information correctly, this data driven business strategy brings an increasing number of identity-driven retailers to invest in customer data assets that they own and control. The value of first party data comes from the means of receiving it, and the fact that the retailer is in full control of this information, to use it to their advantage without exploiting their consumers, increasing the brand’s trust.
First Party Data Collection
As more and more companies turn away from using cookies to collect personal information, the obvious question is then how to collect first party data. Yes, it’s carried out through direct connections and transactions between retailer and consumer, but how does this process actually lead to the collection of the necessary information? To ensure your first party data collection is successful, there must be a give for a take. Some ways media companies can collect this information include:
- Online user registration – The changes to third party cookies has led to an increase in companies asking their customers to register an account with the brand. While many may be turned away by this direct request, companies have found various creative methods to create this link, usually by the customer adding an email address. This registration provides a basis for user records, and helps to personalize shopping and browsing experiences on-site.
- In-store Wifi – Asking for a customer email address to access in-store wifi is an easy and effective way to collect their contact information.
flexEngage and the Value of First Party Data
The value of first party data is only destined to increase as digital retail and marketing seems to grow stronger by the day. For many companies, however, acquiring this necessary information can still be problematic, and for that reason, companies like flexEngage exist to assist in the process.
At flexEngage, our goal is to assist in first-party data collection as a whole. We provide services that turn purchase data into meaningful engagement, through products such as smart receipts, tracking updates, white glove, packing slips and ecomm notifications. We seek to ease the process of engagement, so retailers and brands of all kinds can comfortably engage with their customers. Contact us today to demo any solutions or to answer any questions you may have for your brand or company.