Why First-Party Data Will Be Essential for Marketing Strategies in 2025
Posted: Sun Dec 22, 2024 5:24 am
Does your company have the right practices in place to gather customer information?
In the past, many data acquisition strategies that are now seen as inappropriate or even wrong were common in marketing. Practices included the use of third -party data , invisible tracking, data scraping, and collecting information without clear and informed consent.
With the evolution of digital marketing, and as concerns about consumer privacy increase, the trend is to focus on the use of primary data, or first-party data .
This is data collected directly by the company through user interactions with its own channels and platforms. Some examples are: websites, apps, physical stores, registration forms, focus groups, and e-commerce platforms.
Unlike old methods, information is obtained directly and consensually and is therefore considered accurate and reliable.
Check out this article for an analysis of the growing role of primary data in marketing strategies.
Trends for 2025: Increased use of first-party data in marketing
By 2025, the marketing environment is expected to be even more driven by first-party data. A joint study by Think with Google and Boston Consulting Group revealed that brands that base their marketing strategies on first-party data achieved a revenue increase of up to 2.9 times and a cost reduction of up to 1.5 times.
As consumers become increasingly concerned about their privacy, first-party data will become the primary means by which companies understand and reach their customers.
The trend towards the use of first-party data is reinforced by the decline in the use of [https://dbtodata.com/uk-whatsapp]uk number for whatsapp[/url] third-party data. This is mainly due to the tightening of privacy regulations, such as the General Data Protection Law (LGPD), and the new restrictive policies established by browsers and digital platforms. One example is the end of third-party cookies .
How primary data helps position companies ahead of the market
By collecting, managing and using such data, institutions maintain full control over the quality and accuracy of the information, while simultaneously respecting consumer privacy and preferences.
This not only strengthens customer trust, but also improves campaign personalization, delivering more relevant experiences and a higher return on investment (ROI).
Here are five advantages that using primary data offers in an increasingly competitive market:
Greater compliance with rules and risk mitigation
Minimizing risks of privacy violations.
Protection against fines associated with inappropriate data collection practices.
Compliance with the LGPD strengthens consumer trust and security, promoting a more responsible and transparent brand image.
Long-lasting customer relationships
Better understanding of customers, anticipating their needs.
Conditions to offer more personalized and engaging experiences.
Building long-term relationships, increasing Customer Lifetime Value and brand loyalty.
Agility to respond to market changes
Better preparedness to respond quickly to changes in consumer preferences or market dynamics.
Speed and precision in adjusting marketing strategies.
Better adaptation to new trends and demands.
Making informed decisions
Insights for more assertive decisions in marketing, product development and customer service.
Clear understanding of the target audience's behavior and preferences.
Effectively adapting strategies to meet expectations and anticipate changes.
Stimulating innovation and sustainable growth
Innovation in marketing practices and the way they relate to customers.
New opportunities for growth.
Strengthening the company's position in the market, with sustainable and long-term growth.
Best practices for collecting and using primary data
For companies to make the most of primary data, it is essential to adopt best practices for its collection, management and use.
To achieve this, some measures can be taken to generate this optimization, such as:
Obtain clear and explicit consent Transparency is key. When collecting first-party data, companies should ensure that customers clearly understand what they are consenting to and how their data will be used. Offering value in exchange for opting in, such as exclusive content, discounts, or a better user experience, can increase consumers’ willingness to share their data.
Centralize data management
Using a centralized data management platform (CDP) can help you integrate data from multiple sources into one place. This makes it easier to access, analyze, and segment data for more effective marketing campaigns.
Invest in security and compliance As privacy concerns grow, it is essential that companies invest in data security and ensure compliance with the LGPD. Responsible use of data not only avoids penalties but also increases consumer confidence.
Use AI and ML for targeting and personalization Leveraging AI and machine learning algorithms can help you discover patterns in first-party data that would be difficult to identify manually. These technologies enable more precise targeting and the creation of personalized campaigns at scale.
Regularly update and clean data The quality of primary data should be constantly monitored. Outdated or incorrect data can compromise the effectiveness of marketing campaigns. Maintaining a data cleansing and updating practice ensures that the information used is accurate and relevant.
Also read: AI and Machine Learning Integration: 2024 Updates We Need to Know
Harness the full potential of primary data
If previously the use of primary data was seen as a competitive advantage in marketing, today it is an indispensable practice for the success of business strategies.
Companies that do not have the full capacity to collect, process and apply insights generated from primary data run the risk of falling behind or even not surviving in a market where strategies need to be based on solid foundations.
In the past, many data acquisition strategies that are now seen as inappropriate or even wrong were common in marketing. Practices included the use of third -party data , invisible tracking, data scraping, and collecting information without clear and informed consent.
With the evolution of digital marketing, and as concerns about consumer privacy increase, the trend is to focus on the use of primary data, or first-party data .
This is data collected directly by the company through user interactions with its own channels and platforms. Some examples are: websites, apps, physical stores, registration forms, focus groups, and e-commerce platforms.
Unlike old methods, information is obtained directly and consensually and is therefore considered accurate and reliable.
Check out this article for an analysis of the growing role of primary data in marketing strategies.
Trends for 2025: Increased use of first-party data in marketing
By 2025, the marketing environment is expected to be even more driven by first-party data. A joint study by Think with Google and Boston Consulting Group revealed that brands that base their marketing strategies on first-party data achieved a revenue increase of up to 2.9 times and a cost reduction of up to 1.5 times.
As consumers become increasingly concerned about their privacy, first-party data will become the primary means by which companies understand and reach their customers.
The trend towards the use of first-party data is reinforced by the decline in the use of [https://dbtodata.com/uk-whatsapp]uk number for whatsapp[/url] third-party data. This is mainly due to the tightening of privacy regulations, such as the General Data Protection Law (LGPD), and the new restrictive policies established by browsers and digital platforms. One example is the end of third-party cookies .
How primary data helps position companies ahead of the market
By collecting, managing and using such data, institutions maintain full control over the quality and accuracy of the information, while simultaneously respecting consumer privacy and preferences.
This not only strengthens customer trust, but also improves campaign personalization, delivering more relevant experiences and a higher return on investment (ROI).
Here are five advantages that using primary data offers in an increasingly competitive market:
Greater compliance with rules and risk mitigation
Minimizing risks of privacy violations.
Protection against fines associated with inappropriate data collection practices.
Compliance with the LGPD strengthens consumer trust and security, promoting a more responsible and transparent brand image.
Long-lasting customer relationships
Better understanding of customers, anticipating their needs.
Conditions to offer more personalized and engaging experiences.
Building long-term relationships, increasing Customer Lifetime Value and brand loyalty.
Agility to respond to market changes
Better preparedness to respond quickly to changes in consumer preferences or market dynamics.
Speed and precision in adjusting marketing strategies.
Better adaptation to new trends and demands.
Making informed decisions
Insights for more assertive decisions in marketing, product development and customer service.
Clear understanding of the target audience's behavior and preferences.
Effectively adapting strategies to meet expectations and anticipate changes.
Stimulating innovation and sustainable growth
Innovation in marketing practices and the way they relate to customers.
New opportunities for growth.
Strengthening the company's position in the market, with sustainable and long-term growth.
Best practices for collecting and using primary data
For companies to make the most of primary data, it is essential to adopt best practices for its collection, management and use.
To achieve this, some measures can be taken to generate this optimization, such as:
Obtain clear and explicit consent Transparency is key. When collecting first-party data, companies should ensure that customers clearly understand what they are consenting to and how their data will be used. Offering value in exchange for opting in, such as exclusive content, discounts, or a better user experience, can increase consumers’ willingness to share their data.
Centralize data management
Using a centralized data management platform (CDP) can help you integrate data from multiple sources into one place. This makes it easier to access, analyze, and segment data for more effective marketing campaigns.
Invest in security and compliance As privacy concerns grow, it is essential that companies invest in data security and ensure compliance with the LGPD. Responsible use of data not only avoids penalties but also increases consumer confidence.
Use AI and ML for targeting and personalization Leveraging AI and machine learning algorithms can help you discover patterns in first-party data that would be difficult to identify manually. These technologies enable more precise targeting and the creation of personalized campaigns at scale.
Regularly update and clean data The quality of primary data should be constantly monitored. Outdated or incorrect data can compromise the effectiveness of marketing campaigns. Maintaining a data cleansing and updating practice ensures that the information used is accurate and relevant.
Also read: AI and Machine Learning Integration: 2024 Updates We Need to Know
Harness the full potential of primary data
If previously the use of primary data was seen as a competitive advantage in marketing, today it is an indispensable practice for the success of business strategies.
Companies that do not have the full capacity to collect, process and apply insights generated from primary data run the risk of falling behind or even not surviving in a market where strategies need to be based on solid foundations.