As an e-commerce business owner, you know how valuable customer data can be to your success. However, not all data is created equal.
First-party data - customer data collected firsthand by a business from its customer base - is becoming increasingly important for e-commerce businesses to collect and utilize. And while many e-commerce marketers will tell you that updates to Apple's iOS17 or other platform changes are ruining their campaigns, we’re taking a different approach at Emotive - we’re solving the problem.
Let’s look at the advantages of first-party data in e-commerce, why it should be a part of your data strategy, and how to integrate these tactics into your brand strategy.
Compliance with Privacy Regulations
Privacy laws are evolving rapidly. Companies must collect and operationalize first-party data to comply with these regulations. By collecting data directly from customers, e-commerce businesses have more control over data privacy and can ensure that they are collecting and using data in a responsible and ethical way.
Personalized Customer Experience
Using first-party data to personalize the customer experience is key to success in e-commerce. By taking advantage of insights gained from first-party data analysis, businesses can provide targeted product recommendations, personalized messaging, and tailored experiences that will resonate with customers. This can result in increased loyalty and higher conversion rates.
First-party Data is Cheaper and More Accurate
First-party data is cheaper and more accurate than third-party data, which is purchased from outside sources. By collecting data directly from customers, e-commerce businesses save money and also have more control over the data's quality and accuracy. This enables more precise analytics and insights-based decision-making.
Growth and ROI Opportunities
First-party data is a valuable tool for e-commerce growth. By analyzing customer behavior, businesses can uncover opportunities to improve their products, marketing, and overall customer experience. Used effectively, insights from first-party data can drive revenue growth and improve ROI.
Best Practices for First-Party Data Collection
Businesses must follow best practices when collecting first-party data to ensure it is accurate, timely, and secure. First-party data should be:
Have clear opt-in and opt-out processes
Be collected legally compliantly
Should be housed privately
Additionally, it is important to use a first-party platform that still gets engaging results. The laws and tech will always change, but compelling strategy remains the most important part of e-commerce marketing.
Emotive’s Pixel is the Best Way to Gather Data for E-Commerce Marketing
First-party data is no longer an option - it is now a necessity for e-commerce brands. Its advantages in terms of personalization, accuracy, cost savings, and growth potential make it a critical ingredient in any successful e-commerce data strategy.
At Emotive, our proprietary pixel is a game-changer for first-party data collection, and we pair it with a team of seasoned experts who run our managed services. Combined, you have an ROI rocket ship that you can get on board with easily. Sign up for a demo today.