JULY 21, 2022
Traditionally, data is broadly divided into first-party and third-party data. Until now, third-party data, which has assumed an essential role in data analytics, is being challenged by the increasing reliability and use of first-party data strategies. First-party data differs from third-party data on the basis of consumer consent. First-party data is the data a customer intentionally shares whereas third-party data is data collected from external sources and often without the customer’s knowledge or explicit consent.
First-party data is data which is sourced directly from interactions with customers and audiences on owned media such as its website. First-party data examples include purchase history, website activity, email engagement, customer feedback programs and behaviours. For most businesses, first-party data examples include information gotten from lead forms, user action taken across its website, behaviour on its company’s social media profiles (e.g. comments, shares, etc.), email communications, ad clicks to its website as well as answers to customer surveys.
In conclusion, First-party data offers increasing opportunities to strengthen customer relationships on owned media channels. It can also help manage customer identities, build trust, and increase chances of personalization and bespoke connections. Research shows that 71% of consumers expect companies to deliver personalized interactions. This personalization will define multi-channel experiences driven by extending engagement touch-points for a better brand experience across the customer journey. First-party data also has the ability to ignite a one-to-one relationship with customers using immersive and contextual personalization experiences. Moreover, 72% of consumers during research said they expect the businesses they buy from to recognize them as unique individuals and know what their interests are. What better way to achieve this insight than with first-party data strategies?
Businesses in Africa can leverage first-party data for their marketing and product development strategies through Terragon’s vast array of martech products. One of these products is the Terragon CDP which is designed to pull data from multiple sources and touchpoints and create a 360-degree view of each customer. This allows for personalised and contextual advertising. For instance, to market a specific brand of beer to male customers in the East during a premier league football match, as against a female in the North; or promote travel insurance to a Bank customer who just made a payment for a flight ticket.
This sort of segmentation and personalised marketing capability is made possible by the Terragon CDP which is uniquely equipped with over 108 million profiles to enable enrichment of First party data using strict data privacy compliance methods. As a result, advertisers are able to create audience buckets based on various criteria including demography, location, behaviour and interest; and target them via available multi-channel options – offline (mobile) and online (web).