{"id":27423,"date":"2022-05-18T14:07:44","date_gmt":"2022-05-18T13:07:44","guid":{"rendered":"https:\/\/www.intercom.com\/blog\/?p=27423"},"modified":"2024-07-18T11:29:48","modified_gmt":"2024-07-18T10:29:48","slug":"first-party-data","status":"publish","type":"post","link":"https:\/\/www.intercom.com\/blog\/first-party-data\/","title":{"rendered":"What is first-party data?"},"content":{"rendered":"

First-party data is the future of online engagement and customer experiences. There\u2019s no two ways about it.<\/p>\n

In June 2021, Google confirmed<\/a> that it will no longer track individuals online via cookies. This isn\u2019t surprising given competitors such as Apple\u2019s Safari and Mozilla Firefox are cookieless by default \u2013 however there are already debates<\/a> about how Google will collect and use data thereafter.<\/p>\n

One aspect that can\u2019t be debated is the value of first-party data as we proceed into this cookieless future. Simply put, first-party data is information that your company owns and has collected directly from your audience (i.e. customers, site visitors, leads). It\u2019s a rich, first-hand source of truth that powers a higher standard of engagement efforts. Given there have been constraints put on third-party data over the years (ie, GDPR), growing questions over the responsible use of said data, and a desire for transparency from consumers the question really is \u2013 why haven\u2019t companies prioritized first-party data in the first place?<\/p>\n

Let’s discuss what first-party data is, how Intercom thrives on it, and how to leverage it to support smarter customer engagement.<\/p>\n

What is first-party data?<\/h2>\n

First-party data is information you collect directly from your customers, site visitors, and app users based on their actual interactions with your business across numerous touchpoints \u2013 both historical and in real time. In a nutshell, it is any information you collected consensually and first-hand from your users \u2013 and therein lies its value.<\/p>\n

“76% of consumers are now happy to entrust that data to businesses in exchange for superior experiences”<\/p><\/blockquote>\n

First-party data allows businesses to create ultra-personalized content, advertising and, most importantly, experiences that cater to individual users, because it is the most accurate source from which you could gather customer insight (i.e. what customers are interested in, what problems they are facing, what their needs and preferences are). However, gathering accurate data and taking the right actions is only possible when you have a mechanism in your product or on your site that meets customers in the moment to ask them what is that they desire and need.<\/p>\n

In the past, we have discussed how customer experience<\/a> has become the key vehicle for attracting and retaining customers \u2013 and first-party data is the fuel for that experience engine. While consumers have been hesitant about data sharing in the past, 76%<\/a> are now happy to entrust that data to businesses in exchange for superior experiences, offers, and products. This is an understanding from which all sides benefit from.<\/p>\n

\u201cAn open channel of communication between the customer and the business \u2013 in the product, in the moment and on their terms \u2013 is essential to properly collect and harness the power of first-party data. But, it only becomes more valuable when you enable that engagement channel throughout the entire customer lifecycle.\u201d
\nAnna Griffin, Chief Marketing Officer at Intercom<\/strong><\/p><\/blockquote>\n

At Intercom, we have been long-time believers in the importance of customer data<\/a> \u2013 conversing with our customers directly to get rich insights, storing it securely, and using it to continuously improve experiences. With this data you can personalize every interaction on your site \u2013 send targeted messages by segment, personalize campaigns, view customer interactions and chat history, or even automate your chatbots by training them to recognize frequently asked questions.<\/p>\n

The customer journey is no longer linear, involving communications from marketing, sales, and support reps from lead to loyal customer. That\u2019s why we made it easy to integrate data from your entire tech stack<\/a> \u2013 meaning your customers’ context follows them regardless of where they are in their customer journey or who they are talking to. Brands struggle to offer seamless omni-channel experiences, with about half of business decision-makers<\/a> saying their brands do not have the ability to carry context across channels. This is a major hurdle to staying competitive, as about 85% of business respondents<\/a> also state that their customers prefer to have their context follow them from channel to channel for a seamless brand experience. Therefore, bringing your data sources together in one tech stack, allows your team to interact with customers in a way that continues to meet their growing expectations.<\/p>\n

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The problem with third-party data<\/h2>\n

Third-party data<\/a> is collected by organizations that don’t have a direct relationship with your audience. Data processors collect it from multiple sources, clean it up, and then provide it (or sell it) to digital marketers, advertisers, and sales teams, who use it to create targeted interactions with leads and customers.<\/p>\n

“Compared to rich firsthand information contributed by individuals, it provides only a broad understanding of a large audience”<\/p><\/blockquote>\n

One problem with this type of data is that it tends to be more ambiguous. Compared to rich firsthand information contributed by individuals, it provides only a broad understanding of a large audience \u2013 not taking into account the different experiences and goals of the individual.<\/p>\n

Not only that, but from GDPR<\/a> to Google’s cookieless future<\/a> and even attempts by companies such as Apple’s \u201cIntelligent Tracking Prevention\u201d<\/a> update, third-party data is often restricted by data privacy laws. Not to mention the methods used to collect it<\/a> may not align with consumers’ increasing expectations for privacy.<\/p>\n

As an alternative to the \u201ccookieless future,\u201d Google recommends strengthening first-party data<\/a> processing.<\/p>\n

\u201cIt’s about more than reinforcing loyalty and improving experience. It\u2019s about creating new opportunities for transactions at the very moment when customers and prospects are most interested or need you most. In a cookieless world, ongoing engagement across the customer lifecycle is the future of business and is the untapped area for the next generation of customer value and growth.\u201d
\nAnna Griffin, Chief Marketing Officer at Intercom<\/strong><\/p><\/blockquote>\n

Whether you are a marketer, sales rep, e-commerce manager or otherwise, shifting focus from third-party to first-party data shouldn’t be cause for alarm. In fact, we believe this period of change will bring many opportunities for businesses to strengthen their processes of data collection, analysis, and use. And, those who put fresh data processes in place early stand to get a jump on the competition.<\/p>\n

How Intercom thrives on first-party data<\/h2>\n

Moving away from third-party data doesn\u2019t mean marketing teams will now lack the data they need to build personalized, responsive experiences. They just might need to invest more fully in tools that help them gain actionable data from consumers who opt in to share this information.<\/p>\n

\u201cUnified customer communications platforms, such as Intercom, are key for creating these meaningful engagements for all teams across sales, marketing and support. Not only can you build rich AI across all the touchpoints of the customer lifecycle, but it serves a single customer record, allowing businesses to break down silos and help cross-functional teams to work together to better serve the customer.\u201d
\nAnna Griffin, Chief Marketing Officer at Intercom<\/strong><\/p><\/blockquote>\n

Intercom\u2019s unified platform, The Engagement OS<\/a>, ensures you can leverage all the customer data you collect firsthand across every touchpoint from sales, marketing, and support. Targeting, personalization, optimization, and reporting also becomes more robust and effective with all your customer and event data<\/a> (including actions taken on your site, engagement history, chat history, what package they\u2019re on, and more) captured and stored by Intercom. Plus, with the ability to enable two-way communication channels, you can continuously listen, learn from your customers, and take action across all stages of the entire customer journey.<\/p>\n

“Create cohesive and personalized experiences that will result in happy and loyal customers”<\/p><\/blockquote>\n

Collecting dynamic, live data directly from your customers means you can power personalized and highly targeted messages and workflows, and uncover deeper insights. These interactions are stored within Intercom\u2019s customer communications platform and shared across all channels (eg. Switch<\/a>, Mobile Push and Carousels<\/a>, Whatsapp<\/a>, in-app Messages<\/a>, Messenger<\/a>, Bots<\/a>, email<\/a>, social<\/a>, Surveys<\/a> and more). Therefore, you can create cohesive and personalized experiences that will result in happy and loyal customers.<\/p>\n

Not only that, but you can rest assured that all data collected is stored securely within Intercom. Our Information Security (InfoSec) team<\/a> safeguards our customers\u2019 trust in our platform and we are evidenced by our SOC2 Type II and HIPAA attestation reports and ISO27001 certification, so that businesses can collect and store data with peace of mind.<\/p>\n

Intercom\u2019s Engagement OS is built with data syncing in mind – with features programmed to collect, store, and utilize information as well as being compatible to integrate tools you already use. Let\u2019s take a look at some of those key functionalities:<\/p>\n

Custom Bots<\/h3>\n

Our Custom Bots<\/a> collect first-party data (for example, their name, email, how often they visit your site, the device they visit from, where they are located, when they signed up to your product and more<\/a>) directly from customers, making support much quicker and more efficient, and saving your team time and energy. Our bots learn from the information they collect to automatically improve the quality of your support offered. For example, if a chatbot knows how to answer a question like \u201chow do I add another user?\u201d it can automatically recognize \u201cwhere do I add another user?\u201d as having the same meaning. That similar phrasing can automatically be added to its knowledge bank, so future questions are phrased in the same way.<\/p>\n