Google planned on phasing out third-party cookies due to issues mainly concerning privacy, at the end of 2024. However, they have postponed this phase-out once again, giving businesses (and Google) more time to adapt to the future and come up with a better solution. What’s more, this delay is the perfect opportunity to start focusing on your first-party data strategy. Developing such a strategy is crucial for staying ahead in the digital landscape. Needless to say, this is only allowed when a visitor has given consent. Let’s explore what first-party data is and how you can leverage it effectively!
What is first-party data?
First-party data is the information you gather directly from your audience. This can come from your website, apps, social media, and customer feedback. It’s highly valuable because it comes straight from your customers. Second-party data, on the other hand, is someone else’s first-party data that you obtain through agreements between companies. Third-party data is different; it is collected by data aggregators who combine data from various sources, like cookies, and then offer it to other companies. Although third-party data provides useful insights, it is less reliable and increasingly scrutinised due to privacy issues.
Why should you start thinking about your first-party data strategy?
A first-party data strategy is crucial in gaining a competitive edge. It helps you understand your customers better. With this strategy, you can offer personalised experiences. It also ensures data privacy and compliance with regulations. Ultimately, investing in a first-party data strategy boosts customer trust and decreases your dependency on third-party data.
Five ways to start with your first-party data strategy
Implementing a first-party data strategy might seem daunting, but it doesn’t have to be. Here are five practical steps you can take right now to get started and make the most of your customer data (with consent!).
1) Improve privacy and transparency
Your customers value their privacy, so it’s essential to be transparent about how you collect and use their data. Always ask for consent and provide clear options for customers to manage their data preferences. Implementing a cookie banner is crucial for this purpose. According to the Autoriteit Persoonsgegevens (AP) in the Netherlands, a cookie banner must include the following elements:
- Inform visitors about how cookies are used and their purpose.
- Ensure that choices are not hidden or made less appealing.
- Do not pre-check cookie categories by default.
Moreover, Google recently introduced Google Consent Mode v2 (GCMv2), which is supported by Consent Management Platforms (CMPs) like Cookiebot, OneTrust, and CookieYes. GCMv2 allows advertisers to collect data even if the visitor has not given full consent. For example, if a visitor converts but blocks marketing cookies, GCMv2 sends cookieless pings to collect data.
2) Implement Server-Side Tagging
Server-side tagging is a method of collecting data directly on your server. This approach reduces the risk of data loss and ensures better performance, as it helps bypass ad blockers. Client-side tagging, on the other hand, relies on browsers and devices to collect data, and can be affected by ad blockers, cookie restrictions, and browser updates. We have seen uplifts of 5% in conversions after the implementation of server-side tagging, which makes it worthwhile to invest in.
3) Data Collection Methods
Before collecting data, you should have an end goal in mind. For instance, you might not know who your customers are and what they need; finding that out could be a goal. Once you have identified the end goal, you should think about what data you need: what data do you currently have and where are the gaps? When collecting data, use various methods. This includes website analytics, email marketing, and surveys. However, always double-check that security and privacy are warranted.
4) Data Warehousing
Start with storing your data in a centralised, secure location. This is known as data warehousing. It allows for easy access and management of data. A well-organised data warehouse ensures you can analyse and use your data effectively. Why is this important? Firstly, by integrating data from different sources, a data warehouse helps ensure data quality and consistency. It standardises data formats, resolves inconsistencies, and eliminates duplicates. This results in more accurate and reliable data for analysis. Furthermore, a data warehouse stores historical data, allowing you to analyse trends over time. This leads to better insights and more informed decision-making.
5) Utilise Predictive Analytics
Predictive analytics help you anticipate customer behaviour. Use the data you have collected to predict trends and outcomes. Just remember to make sure that this data must be fully cleaned as garbage in is, in fact, garbage out. Usually,data scientists have a plethora of tools and techniques to develop predictive models. Ultimately, predictive analytics can significantly boost your business performance.
Get to work
Starting a first-party data strategy is essential for today’s businesses. It’s not just about collecting data; it’s about using it wisely. By improving privacy and transparency, implementing server-side tagging, using diverse data collection methods, organising your data in a warehouse, and utilising predictive analytics, you can enhance your customer understanding and drive success. Take the first step today and unlock the full potential of your customer data. Do you have any questions or need our help? Feel free to reach out!
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