eCommerce News Australia logo
The latest digital commerce news for Aussie businesses
Story image

First-party data: A reason to celebrate

By Contributor
Fri 8 Apr 2022

Article by Attain head of marketing, Jonathan Wrait.

For years, brands have been utilising the benefits of third-party data to acquire customers. However, what happens when the tools needed for building that database get taken away?

The answer is first-party data.

The key to understanding first-party data is to start with zero-party data.
 
Zero-party data is information customers give to a business, like name, address, phone number, or other contact details. First-party data then naturally emerges from that information. 

First-party data is learned data. For example, an eCommerce store would have data on customer purchase history. While this isn’t information that the customers directly give, like with zero-party data, just being on a website and accepting its privacy policy gives a business permission to obtain that information. 

Then there comes third-party data. Third-party data is anonymous data collected or bought through various sources (i.e.loyalty cards) by major platforms like Facebook or Google. That information is then used for target advertising. 

At one point in time, this was the cheapest form of data. Campaign costs were low, and third-party targeted advertising was an effective way to drive traffic to websites. 

However, in recent years, third-party has taken a hit. It first began when more businesses started flocking to this method of advertising, which drove costs up. Then Apple introduced app tracking transparency (ATT). Facebook lost an enormous amount of data as 62% of iPhone users opted out of allowing the social media giant to track their activity (CNBC, 2021). 

On top of all this, cookies are being phased out. Google announced back in 2020 that by 2023, third-party cookies would be removed from Chrome. 

ATTP, the end of cookies, and even the younger generations showing disinterest in Facebook, third-party data is no longer the best option as a long-term marketing strategy. 

This creates a problem for the many businesses who put all of their eggs in the third-party basket, leaving them scrambling to source alternative options. However, the reality is an alternative solution has been here the whole time: first-party data. 

While maintaining and nurturing a customer base should have been a top priority even before the fall of third-party data, it is now a must for businesses. This data, these customers or audiences that have subscribed to EDMs or monthly newsletters, need to be communicated with in order to keep your business top of mind. Engaging with and nurturing first-party data will have a much longer, more viable payoff than anything you can do with third-party data. 

Although, this then brings about two questions:

  • 1. How do businesses convert third-party data into first-party?
  • 2. How do businesses nurture this data and keep them coming back?

There is a significant amount of information you can collect when visitors visit your websites, like items they’ve clicked on or things they’ve purchased. Then, you can deliver more personalised experiences to keep those customers coming back based on that data. This strategy has proven successful, with one study finding that 60% of consumers feel better about purchasing from a company that has sent them personalised messages (Taxoo, 2020). 

By getting these users to come back, you essentially turn them into advocates for your business. You’ll start receiving referrals from those customers, which is a much more powerful tool than repeatedly spending money trying to attract people who don’t know your brand. Converting, nurturing, and maintaining your customer base is essentially like creating a passionate fan base that keeps returning and purchasing. 

Once that fan base starts to become more loyal, suddenly, cost is no longer a priority. With third-party data, who is the cheapest option is the name of the game. These customers know nothing about the different brands and simply look for the most cost-effective option. First-party data gives you the power to leverage your brand. Customers will return not because you’re the cheapest option but because they want to buy specifically from you. 

One retail company found that they could increase their conversion rate by 158% if they developed a comprehensive email-marketing strategy that consisted of multiple trigger messages based on a subscriber’s purchase history, browser behaviour, and product interest (Data Axle, 2021).

The best thing about first-party data is it’s the most sustainable data available for one simple reason: it’s yours. 

Third-party data is like growing a garden at a rental property. You can put energy into growing and nourishing it until it becomes fruitful and profitable. However, the landlord can decide to sell the property one day, and all your carefully cultivated plants are no longer yours. Similarly, Facebook can suddenly decide to remove your page or accidentally suspend your Ads Manager account. Third-party data does not belong to you, no matter how much work and money you put into it. 

On the flipside, first-party data is a garden in a home you own. You will be able to live off of the fruits of your labour, and nothing can take that away.

While first-party data has been around forever, it’s now, more than ever, the sustainable option for businesses. As privacy changes continue to decrease the value of third-party data, the riskier it becomes for businesses investing too much in it. 

The best solution now is to leverage the power of first-party data.

Related stories
Top stories
Story image
Marmalade
Exclusive: Marmalade empowers businesses to take control of their cash flow
Marmalade has been making waves in the invoicing space across Australia with its world-first invoice payments platform.
Story image
Digital Transformation
Common challenges in the evolving digital world, and how to overcome them
Five technology challenges that will help highlight potential pain points and suggest how to circumvent or overcome them on the path to a smooth digital transformation.
Story image
Ransomware
Big business in cryptocurrencies and cybercrime
As of June this year, about a quarter (26%) of Australians considered cryptocurrency as a good investment, and over 36% have at one point considered buying cryptocurrency as an investment.
Story image
eCommerce
Online shoppers leaving cart because of high shipping costs - report
New research commissioned by HUBBED reveals 90% of online shoppers abandoned a cart due to high shipping costs, and 64% say the lack of security was a purchase deterrent.
Story image
Economics
9 in 10 retailers prepared for economic challenges this year
Some 9 in 10 retailers (86%) are prepared for continued inflation, higher interest rates and potentially lower consumer spending, according to new research.
Story image
Cheetah Digital
Privacy, data ethics and the ‘seismic shift’ in consumer trust
Aussie consumers have low levels of trust for advertising, but will pay more to purchase from a trusted brand, a new report from Cheetah Digital reveals.
Story image
Data
Consumers will stop doing business over data practices
“Data privacy remains a concern for consumers when it comes to sharing their information with an online retailer with an unclear view of privacy laws."
Story image
Remote Working
Sana Commerce builds online ordering portal for Food & Dairy Co
B2B eCommerce platform Sana Commerce says Sydney wholesaler Food & Dairy Co has gone live with its ERP integrated ordering portal.
Story image
Ebay
FedEx and eBay team up to boost APAC eCommerce options
FedEx Express' new alliance with eBay enables eBay sellers in APAC to sign up for a FedEx account and access the full spectrum of FedEx e-commerce delivery service options at competitive rates.
Story image
Artificial Intelligence
Cyara rolls out comprehensive, automated chatbot feature
Cyara has unveiled new chatbot testing features with the latest release of Cyara Botium, creating a solution for comprehensive, automated chatbot testing and assurance.
Story image
Payroll
Fintech software allows employees to access wages before payday
Paytime is a tech platform that plugs into payroll software allowing employees to access a portion of their earned pay before payday.
Story image
Social Media
ActiveCampaign reveals consumers seek trusthworthy content
Consumers will engage with new brands across all channels, including online, in-store and social media, as long as the content is relevant and trustworthy.
Story image
Customer experience
BillingPlatform introduces new enhancements to revenue management services
Some of the new developments include hosted payment pages, and new and updated connectors to Salesforce, NetSuite, OneSource, Avalara and other enterprise systems.
Story image
SaaS
OpenText launches new solutions on Salesforce AppExchange
Included in this latest launch is OpenText Core Content, a Content Services platform that customers can leverage to effectively manage their content.
Story image
Manufacturing
How manufacturers can respond to rapid change with technology
Disruption, innovation, and continual refinement of shop floor processes are driving factors in today’s complex market landscape. 
Story image
Google Cloud
Google Cloud achieves certified strategic status in Australia
Google Cloud says it has reached certified strategic status for cloud services under the Australian Government's Hosting Certification Framework.
Story image
Fintech
SC Ventures launches fintech startup for retail banking
SC Ventures has launched Appro, a fintech startup, to simplify the retail banking user journey, aiming to foster greater efficiency in application processes for retail banking products.
Story image
Cloud
Sitecore caters to modern marketing teams with CMS cloud launch
"Sitecore's move towards a composable SaaS offering for creating and delivering digital experiences is in line with what marketing teams are looking for.”
Story image
ShopBack
Forter and ShopBack enhance partnership to further prevent fraud
Forter and ShopBack have enhanced their partnership with the addition of better eCommerce security solutions for customers.
Story image
Apps
Freshworks integrates with Google's Business Messages
"The integration with Freshworks makes it fast and easy for businesses to have conversations with their customers within the Google apps."
Story image
Artificial Intelligence
Oracle unveils AI-powered application to automate sales
Oracle has unveiled the next generation of Fusion Sales, an application that automates sales and identifies the opportunities worth pursuing.
Story image
Wireless
Hands-on review: Jabra Engage 55 wireless headset
We get our hands on a German design professional headset that many knowledge workers could benefit from.
Story image
Quinbrook Infrastructure Partners
Quinbrook launches $2.5 billion ‘Supernode’ 800MW data storage project
Quinbrook says the new Supernode will be one of the largest permit-approved data storage campus projects in the Southern Hemisphere.
Story image
Cybersecurity
eCommerce fraud increasing pressure on businesses margins
It is vital for businesses to maximise the value of every dollar by turning away as many fraudulent actors as possible without blocking good customers."
Story image
CRM
Forrester names Pega a Leader in CRM Solutions 2022 report
Forrester Research has named Pega a Leader among 11 competitors in The Forrester Wave: Core CRM Solutions, Q3 2022 report.
Story image
Cryptocurrency
Koinly, Cointree announce crypto tax partnership
"As the cryptocurrency space continues to rapidly grow in Australia, this partnership cements their commitment to crypto investors financial literacy."
Story image
Small Business / SMB
Business Australia unveils new identity after rebranding
Business Australia has rebranded to My Business with a new logo, brand positioning campaign and visual identity culminating in an online platform.
Story image
Enterprise Resource Planning / ERP
Why the right ERP (and partner) is crucial to an innovative and successful business
Enterprise Resource Planning (ERP) is a foundational step to ensuring a robust business model; here's why choosing the right one could be vital to ensuring long-term success and innovative results.
Story image
Recession
1 in 3 SMEs say they wont survive 6 months into a recession
34% of Aussie SMEs would not survive more than 6 months of economic downturn, with 14% unable to survive a recession at all.  
Story image
Microsoft
Infobip’s SMS and WhatsApp services are now available through Microsoft
Infobip has integrated its WhatsApp and SMS channels through Microsoft Dynamics 365 Sales and Microsoft Dynamics 365 Marketing.
Story image
Accounting
Eightcap to use BlackLine system to support financial close
Global CFD Eightcap is using BlackLine's recently launched Modern Accounting Playbook (MAP) to support financial close.
Story image
eCommerce
Marketplacer and Intelligent Reach to help retailers sell online
Intelligent Reach can now support Marketplacer marketplaces that want to sell their products through other places, such as Google and Facebook, eBay and Amazon.
Story image
Printers
Comedy legend Jimeoin fronts Epson advertising campaign in NZ and Australia
According to Epson the company’s EcoTank models now account for 74% of all printers sold in the category in New Zealand, alone.
Story image
Customer
Airwallex launches an online payments app on Shopify
Airwallex has launched an online payments app on Shopify, allowing merchants to integrate a gateway plugin on their online store to accept payments from their global customers.
Story image
Phishing
Akamai research finds PayPal security measures utilised in new phishing scam
New research from Akamai has found that a new threat actor is parasitising benign WordPress sites to execute an extensive PayPal phishing scam.
Wiise
Discover why a localised cloud ERP is the way to go for Australian businesses.
Link image
Story image
Cybersecurity
Workday completes IRAP and gains FedRAMP authorisation
Workday has completed the Information Security Registered Assessors Program (IRAP) assessment at the Protected level, allowing its customers to process data in compliance with IRAP guidelines.
Story image
eCommerce
Live Payments to use Visa’s Tap to Phone tech for merchants
Live Payments has announced a new partnership with Visa to help small businesses and taxi operators accept digital payments securely and conveniently using Visa technology.
Story image
Digital Journey
NICE unveils new CXone capabilities with latest release
NICE has announced the Summer 2022 release of CXone, which adds new capabilities that enhance journey orchestration and complete performance.
Story image
Forrester
SAS is a leader in anti-money laundering - Forrester
The latest Forrester report revealed that SAS received the highest score in the anti-money laundering category of 15 vendors.
Story image
Employment
Australia's technology jobs boom continues - report
Australian tech job numbers continue to grow, with over 1.2 million people expected to be working in the sector by 2027.
Story image
KICKS CREW
KICKS CREW selects Forter to help scale global eCommerce operations
KICKS CREW has selected Forter to help scale its global digital commerce operations.