Between shifts in technology, the economy, and consumer behavior, 2024 has brought marketers a new level of uncertainty. I\u2019m right there with you, and I\u2019ve bought stock in Pepto Bismal.<\/p>\n
So when I got the chance to chat with Christophe Combette, a director of product management at Google, I wanted to know what there is to be excited about <\/em>in marketing.<\/p>\n His surprising answer? Data privacy and first-party data.<\/p>\n I know, I know. Mentioning those things to marketers right now is like kicking a hornet\u2019s nest. Core updates. iOS changes. GDPR and CCPA. The unknown future of 3rd-party cookies. It\u2019s like a wild, marketing-themed cover of that one Billy Joel song.<\/p>\n <\/a><\/p>\n But Combette shared how these changes are making marketing better for consumers AND marketers alike \u2014 if you start soon and play your cards thoughtfully.<\/p>\n And guess what? I\u2019ve got some data-backed tips on how to do just that.<\/p>\n Below, you\u2019ll learn Combette\u2019s perspective on how first-party data will help you crush <\/em>your marketing goals while earning your customers\u2019 trust by preserving their privacy. But first, let\u2019s jump back to what first-party data even means.<\/p>\n \u201cFirst-party data is the data your customers are knowingly sharing with your business,\u201d Combette explained.<\/p>\n When I hear from marketers that haven\u2019t tried a first-party approach, it\u2019s usually because they don\u2019t truly know what it is. And, consequently, they worry that they can\u2019t leverage it for the kinds of strategies they\u2019re used to.<\/p>\n Close your eyes and imagine building a high-performance campaign using all of the following, while still respecting your customers\u2019 consent and privacy:<\/p>\n Demographics Chances are, you\u2019ve already got some good ideas in mind (you rockstar, you), and it wouldn\u2019t take that much to get started.<\/p>\n With that data you could build a lookalike audience, run a re-engagement email, or create all sorts of clever segmentation or personalization. Since it\u2019s all consentfully given, it respects your audience\u2019s privacy. And since it comes from the source, you know it\u2019s accurate.<\/p>\n And that isn\u2019t even close to an exhaustive list.<\/p>\n (Side note: <\/strong>You\u2019ll sometimes see a distinction made where data you gather is considered first-party, while data you\u2019re given by customers is called \u201czero-party data.\u201d To be honest, I find little value in separating the two. You should be using both and you\u2019ll be combining them anyway.)<\/p>\n \u201cYou have this wealth of insights from your customers that\u2019s aligned to your business outcomes,\u201d Combette said. \u201cAnd that combination together is one of the most powerful constructs.\u201d<\/p>\n Let\u2019s take a look at just how powerful.<\/p>\n When I referred to switching to first-party data as a challenge, Combette took a moment to gently correct me.<\/p>\n \u201cI wouldn\u2019t necessarily call it a challenge as much as it is a big shift in the industry,\u201d He told me, adding with a grin, \u201cWhich comes with a big opportunity, and a competitive differentiator, if you nail it.\u201d<\/p>\n And, in truth, that shift is more one of focus, rather than application. First-party data has been there all along, and many marketing teams are already using it to drive deep growth.<\/p>\n What\u2019s shifting is that more businesses are getting on board.<\/p>\n\n \u201cSome marketers have been very successful in building marketing strategies based on third-party identifiers, and first-party data is<\/em> a shift for them,\u201d he goes on. \u201cBut it\u2019s an important one because you can derive a lot more insights from it.\u201d<\/p>\n And chances are, you\u2019ve already got the ingredients. All you need to unlock their insights are the right tools and a plan.<\/p>\n \u201cIt\u2019s the data you\u2019re already using to drive the business outcomes you want.\u201d<\/p>\n Whether you\u2019re switching strategies, or just getting started for the first time, here are some data-backed reasons to believe:<\/p>\n Marketers using first-party data are 93% more likely to say their team is outperforming their goals in 2024 than those who don\u2019t use it, according to HubSpot research.<\/p>\n And 77% of marketers who use first-party data say it results in more personalized content and performs better than external data.<\/p>\n Combette counts off some use cases that really illustrate the value:<\/p>\n \u201cYou want to drive new customer acquisition? That information is one you can only see from first-party insights. You want to optimize towards lifetime value? It requires deep analysis of your first-party data. It\u2019s not something you could do with third-party identifiers.\u201d<\/p>\n It turns out most marketers are missing critical information on their audience\u2014just 42% know their basic demographic information, and even fewer know their shopping habits, purchase history, and which channels they consume content\/media on.<\/p>\n\n First-party data like that can be used to gain high-quality insights and deliver a highly personalized experience to your customers.<\/p>\n And since it’s collected directly from your customers, first-party data is highly accurate and unique to your company while still respecting privacy.<\/p>\n But for customers to give you their personal information, they need to trust you first.<\/p>\n It\u2019s no secret that folks are tired of seeing ads on every platform for something they casually looked up once.<\/p>\n Our Consumer Trends survey shows that close to half (45%) of consumers distrust companies with their website behavior and cookie data.<\/p>\n Using first-party data can make consumers feel safer sharing their personal information because it\u2019s gathered with both their knowledge and consent \u2014 and used only by those they\u2019ve shared it with.<\/p>\n Leveraging first-party sources will allow marketers to get higher-quality data while respecting consumers\u2019 privacy, mutually benefiting both parties.<\/p>\n Both government regulators and consumers are demanding data privacy changes, and marketers are getting tossed around in the waves.<\/p>\n Luckily, execs are paying attention and giving marketers the budget they need to explore alternative measuring and advertising solutions.<\/p>\n\n Almost half (48%) of marketers say their budget has changed this year to compensate for data privacy, with 71% reporting an increase in their marketing budget.<\/p>\n But, to paraphrase the wise old sage, Uncle Ben: With great budget comes great responsibility. And sometimes, a few challenges.<\/p>\n \u201cBuilding and deploying your data across environments has not always been easy or seamless,\u201d Combette admits.<\/p>\n Oftentimes, marketers have to gather data with one set of tools, analyze it with another set, and then actually use those insights in yet a third set of tools.<\/p>\n So perhaps it’s no surprise that our research shows:<\/p>\n 60% of marketers say gathering and tracking visitor data is becoming more difficult. So, while marketers are looking to gather high-quality data, their audiences are less likely to give it. And even when marketers find it, it lives in 10 places, and they\u2019re not sure what to do with it.<\/p>\n\n Thankfully, we\u2019ve got a roadmap \u2014 laid out by Christophe Combette and our own data \u2014 for how to make gathering and utilizing first-party data fast, powerful, and easy-peasy. (Lemon squeazy optional, but encouraged.)<\/p>\n Don\u2019t scroll past this. This isn\u2019t filler. This is the most important step.<\/p>\n If you\u2019re familiar with using third-party identifiers to guide your marketing, you know you don\u2019t just gather them in the hopes that you\u2019ll somehow know what to do later. You had a use case in mind when you started.<\/p>\n Maybe it was targeted social ads. Maybe it was cross-platform tracking. But the data you collected was informed by a goal.<\/p>\n Why should first-party data be any different just because it\u2019s freely available?<\/p>\n In fact, if you gather all of the first-party data you can without regard for use case, you\u2019re more likely to overstep on privacy issues. And you\u2019ll end up with a data puke that helps nobody.<\/p>\n Instead, start with your business outcomes in mind, and work backward to what data you\u2019ll actually need.<\/p>\n Now that you know what data you need, it\u2019s time to consider where it\u2019s coming from.<\/p>\n \u201cWe\u2019re all consumers ourselves. We use the app, the web, we call, we text. I do online chat sometimes,\u201d Combette says. \u201cWe have this wealth of online touchpoints.\u201d<\/p>\n And each touchpoint represents something unique about your prospect or customer.<\/p>\n \u201cSo the key is to have a tech stack that has a 360-view of the customer.\u201d<\/p>\n That means gathering data from multiple high-quality sources. Here are the touchpoints that marketers in our survey agree are the highest quality sources of first-party data:<\/p>\n Customers registering\/creating accounts with your company (signing up for content, discounts, newsletters, etc.) (36%) You\u2019ll notice the highest-quality sources tend to come with the highest level of buy-in. That means you\u2019ve got some convincing to do. Which brings me to \u2026<\/p>\n \u201cOne of the rarest commodities out there for any of us is time. We\u2019re constantly trying to get stuff done, and that comes with a lot of touchpoints, too,\u201d Combette says.<\/p>\n Most marketers will see \u201ctouchpoints\u201d as the subject of that sentence, and start thinking about the value they can extract. But value isn\u2019t a one-way street. If your content isn\u2019t worth your audiences\u2019 limited time, then it isn\u2019t worth their data, and those touchpoints will dry up quickly.<\/p>\n At HubSpot, we find a lot of success with templates, calculators, and free tools. Other businesses may choose whitepapers or webinars. For a B2C business, it may look like coupons and giveaways.<\/p>\n The exact offer will depend on what your particular audience values, but it absolutely must <\/em>offer value.<\/p>\n Here\u2019s what marketers in our survey reported as the most effective ways to incentivize customers to share data:<\/p>\n Offering discounts\/promotions\/loyalty programs (40%) So now you know what data you need, you\u2019ve identified high-quality sources, and you\u2019ve convinced your customers to share it. Great! Now where do you put it?<\/p>\n In a CRM? A CDP? GGT? WQE? If you don\u2019t know which of those acronyms I just made up on the spot, then it\u2019s time to brush up on the different types of data platform software<\/a>.<\/p>\n The type of software you need will depend heavily on your business model, but every business needs a single source of truth.<\/p>\n Our research shows that marketers with a single source of truth are 94% more likely to say their team is outperforming their goals.<\/p>\n Yet, only 60% of marketers have a single source of truth for all marketing data.<\/p>\n Collecting the data is point A, and your business goal is point B. Now the trick is: How do you get your customers from point A to point B?<\/p>\n You just run an ad, and then they buy, right? If you build it, they will come? Unfortunately, it\u2019s rarely that simple.<\/p>\n \u201cAll of our customer journeys are becoming more complicated and fragmented. We see it on our end, too, so it\u2019s not the purchase channel,\u201d Combette shares. \u201cConsumers are using five or more online sources before they buy. That could be a search, a video, going to Google maps.\u201d<\/p>\n And each of those steps is a decision point where your customers could choose you\u2026 or someone else.<\/p>\n Only 16% of marketers have full visibility into their customer journey, yet those who do are 200% more likely to say their team is outperforming their goals.<\/p>\n So, if you\u2019re looking for the competitive differentiator that Combette mentioned, you just found it. Take time to learn about customer journey analytics<\/a>.<\/p>\n One of the biggest challenges with first-party data is using it to thoughtfully measure those five or more touchpoints Combette mentioned.<\/p>\n If, for example, you take an audience you built in your CRM and manually rebuild it in Google Ads, you\u2019re going to lose a lot of time to busywork. (Time that would be more productive, say, watching paint dry.) And you\u2019ll do it every time that audience is updated.<\/p>\n And that\u2019s just one channel.<\/p>\n Instead, look for software solutions that automate the integration with your marketing tools.<\/p>\n
\n Firmographics
\n Website behavior
\n App behavior
\n Social media engagement
\n Purchase history
\n Feedback and survey insights
\n Customer service interactions
\n Loyalty and rewards program data
\n Email engagement
\n Etc. <\/p>\n4 Ways First-Party Data is Helping Marketers<\/h2>\n
1. First-party data is more accurate and more relevant.<\/h3>\n
2. First-party data fills in the gaps most marketers have.<\/h3>\n
3. First-party data fosters trust from consumers.<\/h3>\n
4. Marketing budgets are increasing to accommodate data privacy changes.<\/h3>\n
The Challenges of Using First-Party Data<\/h2>\n
\n Nearly half (48%) of marketers cite increased data privacy changes\/regulations as the biggest challenge to understanding their audience.
\n On the flip side, only <\/em>half (56%) of marketers say the data they have on their audience is high quality.
\n Just 16% have all the data they need to reach their audience.
\n Meanwhile, 47% report that consumers are less trusting with their personal data. <\/p>\n7 Steps to Build a Privacy-Focused First-Party Data Strategy<\/h2>\n
1. Start by asking what data you actually need.<\/h3>\n
2. Audit your data sources.<\/h3>\n
\n Information gathered during the purchasing process (28%)
\n Customer interactions with customer support channels (20%)
\n Social media interactions (likes, shares, etc.) (16%) <\/p>\n3. Consider the value you\u2019re offering in return for data.<\/h3>\n
\n Creating content on social media (e.g. posts, videos, giveaways) (28%)
\n Creating content on your website (e.g. blog posts) (18%)
\n Creating an email newsletter (12%) <\/p>\n4. Know where your data goes.<\/h3>\n
5. Map your customer journey.<\/h3>\n
6. Connect your data directly to that customer journey.<\/h3>\n