First-party data is information a business collects on its customers. Instead of relying on other organizations, for first-party data businesses organize and segment customer data they collect directly from resources they own, such as their own store, email newsletter, apps, social media channels, and form fills . While first-party data collection may require more time and resources, it's often far more accurate, reliable, and valuable than other forms of data.
While data privacy regulations tighten and the world moves toward a cookieless future, first-party data will become even more important to marketing campaigns. Currently, 52% of marketers are prioritizing the collection of more first-party data from digital experiences, due to changing regulations.
As brands shift to using first-party data, they're building better relationships with customers, providing more value, and optimizing their marketing campaigns. Here's how you can do the same.
What is first-party data?
First-party data is data a company collects directly from its audience. This data is owned by the company and is more reliable for predicting the behavior of its users than other data types.
First-party is considered the best form of data to use because it's gathered from the people you have the most to learn from—your audience.
Examples of first-party data
- Purchase history
- Email addresses
- Phone numbers
- Shipping addresses
- Website browsing behavior
- Search queries on your site
- Store visit data
- Loyalty program activity
- Account login details
How is first-party data collected?
First-party data comes from direct interactions between your brand and customers across various touchpoints:
- Website and app behavior analytics
- Purchase history and order data
- Customer account information
- Form submissions and surveys
- Email and SMS subscriptions
- Loyalty program participation
- Customer service interactions
- Direct social media engagements
Brands collect this data through multiple methods, including website pixels, form captures, account registrations, and transaction records. The information is then stored in systems like CRMs or customer data platforms where it can be analyzed.
First-party data is particularly useful for reaching your audience with more accurate marketing campaigns. It's also helpful for understanding their needs and preferences more deeply for retargeting campaigns.
How brands can use first-party data
Brands may use first-party data to:
- Understand customer lifecycles: Collecting first-party data helps you analyze the journey a customer takes from learning about your brand, making a purchase, and finally, telling others about it.
- Develop new products and categories: Using first-party data from surveys and questionnaires, identify gaps in your offerings and create new products and categories to match customer demand.
- Retarget customers: In addition to retargeting customers with ads, use first-party data collection to send out personalized emails, like cart abandonment reminders.
- Break into new markets: Based on data collected from your site visitors, social media followers, and email subscribers, pinpoint new demographics and geographical locations likely to be interested in purchasing your products. Use this information to build out campaigns that target fresh audiences.
- Power intelligent customer service: Use chatbots and human agents equipped with first-party customer data like order history, browsing patterns, and cart activity to provide faster troubleshooting and relevant product recommendations during and after service interactions.
- Create personalized shopping experiences: Leverage first-party data to customize storefronts for each visitor, showing them relevant products, promotions, and content based on their previous interactions with your brand.
- Optimize checkout flows: Combine customized checkout experiences that reflect your brand with accelerated checkout options. Use first-party data to pre-fill forms, suggest relevant upsells, streamline the purchasing process, and boost conversion rates.
Why is first-party data important?
Since first-party data is collected and owned by your business, it offers deeper insights into your audience.
Unlike aggregated third-party data that provides broad demographic insights, first-party data comes directly from your customer interactions. It captures actual customer behaviors and preferences through your owned channel, from browsing patterns to purchase history.
Most importantly, first-party data allows brands to create personalized experiences that customers actually appreciate, moving beyond generic "Happy Birthday" emails to meaningful interactions based on specific customer behaviors and preferences.
For first-party data to deliver maximum value, it must be unified across all customer touchpoints rather than fragmented across multiple systems and profiles. This allows brands to consistently personalize experiences whether customers shop online, in-store, or through any other channel.
Our business strives to offer customers a seamless online experience—from the moment they land on our site to when they check out. Shopify empowers us to deliver personalized and effective experiences globally to keep our customers engaged.
Here are eight reasons why first-party data is essential for improving marketing campaigns:
The shift away from third-party data is accelerating
As privacy regulations tighten and advertising platforms phase out third-party cookies, businesses can no longer rely on borrowed customer insights to grow. That’s why a report from Deloitte found that 61% of high-growth companies are shifting toward first-party data for their personalization strategies.
Third-party data has always had fundamental limitations, such as:
- Questionable data sources and collection methods
- Broad, unfocused consumer pools that may not match your target market
- Information that quickly becomes outdated
- Limited relevance to your specific business needs
The businesses that know their customers best will win—and to know your customers, you need the best data possible, which can only come from direct interactions with your audience.
It gives you higher return on investment
In 2020, Google partnered with Boston Consulting Group to study how brands succeed with first-party data strategies. The report found that those businesses using first-party data for key marketing functions achieved up to a 2.9 times revenue uplift and a 1.5 times increase in cost savings.
Third-party data can be helpful for prospecting new customers. But what if you're marketing to existing customers? Or to audiences with a track record of being interested in your brand?
It's less expensive and more profitable to retain customers than to find new ones—so it makes sense to market to those consumers most likely to purchase from your brand, and most likely to spend more.
Plus, consumers who have already interacted with and purchased from your brand have given you their first-party data. It's often easier, more effective, and less expensive to collect first-party data from your existing customer base.
It empowers consumers and maintains compliance
Customers actively share first-party data with businesses. There are no murky usage terms, and consumers know what information you have about them. Since customers are increasingly concerned about who has their data and how they use it, this level of consent is important.
Increasing legal protections for consumers are popping up on state and federal levels around the world:
- As of September 2024, 20 states, including California, Virginia, and Colorado, have enacted comprehensive data privacy laws. These laws grant consumers rights such as accessing, correcting, and deleting personal information, and require businesses to obtain explicit consent before collecting or sharing data.
- The EU’s Digital Services Act (DSA), effective from November 2023, introduced new obligations for online platforms to discuss how personal data influences marketing and advertising.
- Australia's Privacy Legislation Amendment 2024 demonstrates the global push to empower consumers, guaranteeing data transparency and age-appropriate protections.
- China's Personal Information Protection Law (PIPL) came into effect in November 2021, imposing strict requirements on data processing activities.
- Brazil's General Data Protection Law (LGPD) began enforcement in 2021, with penalties for non-compliance.
When consumers interact with your brand and choose exactly how much personal information they want to share, it builds trust.
Aleksandra Korczynska, CMO at GetResponse, says letting people choose how much information to share with your brand helps strengthen relationships—both customers and brands know where they stand, and neither side has to worry about oversharing or infringing on privacy.
“The main benefit of first-party data is that your target audience shares this information with you,” Alexandra says. “You don't have any concerns about permission to use this data, as people agree to receive communications from you straight away. This group of people is more likely to buy from the brand than those who you would target by PPC, for example.”
It boosts brand loyalty
While providers of second- and third-party data must get consent from consumers to share their information, those consumers haven’t specifically chosen to share their data with your brand. First-party data comes from people who've given your brand their direct consent.
This relationship drives significant benefits:
- Higher average order values through tailored product recommendations
- Increased purchase frequency from personalized communications
- Greater brand advocacy as customers experience more relevant interactions
- Improved retention rates due to customized shopping experiences
Joanna Penn, managing director at Armadillo, says that first-party data helps develop existing customer relationships. “Giving their first-party data to you means a customer has chosen to have a relationship with you and, as with any relationship, the more valuable it is, the more connected you are and the more information they are happy to provide. This relationship should be mutually valuable.”
You own the customer data
Focusing on first-party data means your brand is independent of other data providers and sources. Unlike third-party data that's usually available to anyone who wants to buy it, first-party data is unique to your business. It's data you own and gather from consumers with their direct consent.
There's also the added benefit that first-party data can't be taken away from you like third-party data can.
Marketing consultant Claire Jarret explains that owning customer data reduces the risk of losing it.
“A huge benefit of first-party data is that it can be moved between your social media platforms. So for example, you can upload a list of qualifying email addresses to Facebook and use it as a custom audience to target them with your ads. You could also upload the same list to Google and target them using your ads. If one of your social media accounts is closed down—it doesn't matter, as you can simply upload it to another,” Claire says.
“For example: you don't own your Facebook followers or your Instagram followers—however much you wish you did. Owning first-part data removes this risk entirely. The only data that is reliable is first-party data. You will never lose it, and therefore it makes sense to invest into it.”
She adds that once you own this data, it's then yours to move between marketing channels—something that not all second- or third-party data allows you to do.
It gives you deeper and more meaningful customer insights
When used wisely, first-party data helps brands build direct customer relationships, generate value, and improve marketing performance.
Daniel McCarthy, an assistant professor of marketing at Emory University's Goizueta Business School, says first-party data can help improve your interactions with top customers.
“Businesses do better when they have more valuable customers, and first-party—especially the granular transactional data—is the go-to data source for assessing those valuations,” he says. “Third-party data is noisy and does not do a good job of separating out your good customers from your bad ones.”
First-party data lets you see real purchase history and customer behavior. It's based on how consumers as individuals interact with your brand, not the world at large.
It helps predict future purchasing behavior
Since first-party data is relevant and accurate, it helps you predict future purchasing behavior. For example, if you notice that one of your site visitors has browsed hiking boots and placed a pair in their shopping cart, you can predict they're likely to buy a pair.
When integrated into a unified data system, you can personalize ads for these boots and related products to encourage a purchase. And just as importantly, automatically stop showing those ads once they've made the purchase. This prevents wasted ad spend and avoids the frustrating customer experience of being followed around the internet by products they've already bought.
It helps you personalize content for more accurate targeting campaigns
First-party data lets you personalize content on a more granular level. Instead of targeting demographics that may be interested in your product, you target those that have a proven interest.
For example, first-party data helps this across channels:
- Product recommendations: Show items based on actual browsing and purchase history
- Email marketing: Send automated messages triggered by specific customer actions
- Customer service: Give support teams full context of customer's history and preferences
- Social media: Create targeted audiences using real purchase and engagement data
- Website experience: Customize content based on individual browsing behavior
Eight first-party data use cases
Despite the clear benefits of first-party data, most brands aren't yet using it to its full potential.
Along with improving marketing performance and providing insights into the full buying journey, there are many other use cases for first party-data. Once you've invested time, budget, and resources into collecting valuable first-party data, make it work hard for your brand.
Here are eight ways to use first-party data:
Optimize campaign targeting
A campaign that speaks to everyone, speaks to no one. To better target their audience, brands should focus on strategies that harness their own first-party data. Doing so helps you identify real people across marketing channels and devices.
Using tools like Shopify Audiences allows retailers to tap into powerful algorithms that analyze first-party data to create highly targeted customer lists. These lists can reduce customer acquisition costs by up to 50% compared to traditional targeting methods. The platform connects with major advertising channels like Meta, Google, TikTok, Pinterest, Snapchat, and Criteo, making it easier to reach potential customers where they already are.
Shopify Audiences can also drive up to two times more retargeting conversions through custom Retargeting Boost lists, proving that strategic use of first-party data can significantly improve campaign performance.
Re-engage consumers
Shopping cart abandonment currently sits at around 70%, causing ecommerce stores to lose an estimated $260 billion in sales revenue. If retailers could reclaim even a fraction of that figure, it would represent a huge revenue boost.
First-party data can help you bridge the gap and encourage consumers to re-engage with your offering.
Christina Martinez, CEO at Traject, explains that first-party data shows you who is on the fence and may need a reminder or an incentive to re-engage.
“Use the data you've collected about user behavior on your site to re-engage customers,” she says. “For example, if customers viewed a set of products but did not check out, consider reminding them to return to your site to complete the purchase, or offer them a discount code.”
For example, a clothing brand could use data to identify a consumer's recently abandoned items. It could then send a targeted email to remind the shopper of the items in their cart. This can encourage consumers who are on the fence to convert.
Use first-party review data to increase trust
First-party data in the form of customer reviews is a valuable source of social proof.
Since nearly 70% of online shoppers typically read between one and six customer reviews before making a purchasing decision, it's worth collecting that data and using it to attract new shoppers. Christina agrees that featuring first-party reviews is a great way to develop relationships with new customers.
“Another powerful way to use first-party review data is to turn a great review into a customer testimonial for your marketing materials,” she says. “Many retailers use testimonials on their websites and in social media marketing campaigns. A direct testimonial is one of the most effective ways to start building a relationship with someone who has not yet purchased from your business.”
Improve campaign relevance
First-party data is the most accurate and up-to-date information you have on your customers. Use these insights to personalize your messaging and shape the customer experience to match their preferences.
When launching your new running shoe collection, instead of blasting the same campaign to your entire email list, you can create highly relevant campaigns using your first-party data. You know exactly which customers:
- Previously purchased running shoes (and when they might need replacement)
- Regularly browse running gear
- Engage with your running-related content
- Typically shop in specific price ranges
This first-party data lets you adjust campaign elements for different customer segments. For high-value runners, your campaign might emphasize technical features and performance benefits. For casual runners, you might focus on comfort and versatility. For price-sensitive customers, you could lead with a special early-access discount.
Outline the customer journey
To pull customers back onto the road to purchase, you'll need to know the ins and outs of your customer journey. By analyzing and integrating first-party data from all your sources, you can identify the different steps shoppers take before buying your products.
This will help you send out tailored messages at the right time to encourage customers to engage with your brand. You can then make changes to your existing customer journey strategy based on how they engage. This validation is an ongoing process and should be revisited often as more first-party data is collected.
Understand attribution
First-party data reveals which marketing tactics drive real results. Analyzing customer behavior across your owned channels lets you track how different messages and campaigns lead to sales.
This insight lets you optimize your marketing spend across both digital and physical channels, so every dollar works harder. The unified view of customer interactions helps you connect online activities to in-store purchases, giving you the full picture of your marketing's effectiveness.
Improve omnichannel measurement
Traditional omnichannel measurement often fails because it relies on stitching together data from separate systems, like your online store analytics, POS data, and marketing platform metrics. This creates blind spots and attribution problems.
A unified first-party data foundation solves this by:
- Creating one complete view of purchase data across all channels (not just collecting data from each channel separately)
- Accurately attributing sales to marketing activities across channels (e.g., seeing how an online ad drove an in-store purchase)
- Measuring true channel performance without double-counting or missing touchpoints
- Calculating accurate ROI for your omnichannel strategies
For example, rather than seeing separate conversion rates for your online and physical stores, you can measure how channels work together—like the percentage of customers who browse online before buying in-store, or how in-store returns impact online repurchase rates.
Create accurate customer profiles
A complete customer profile starts with a single unified data model that brings together all customer interactions. Rather than dealing with fragmented identities across multiple databases, modern retailers can create one source of truth that captures:
- Purchase history across all channels (online, in-store, marketplaces)
- Browsing and engagement data
- Marketing interactions (email, SMS)
- Support conversations
- Loyalty program activity
- Customer preferences and behaviors
The key is having all this data flow into one core customer model from the start, rather than trying to merge separate profiles later. This foundation allows you to understand customers' full shopping journey and deliver the personalized experiences they actually want.
First-party data pitfalls
Before you dive into collecting first-party data, consider the pitfalls so you stand the best chance of gathering useful data and turning it into successful marketing campaigns.
Here are the top four first-party pitfalls marketers fall into:
Gathering surface-level data
The whole aim of collecting first-party data is to collect deeper insights into your audience—so don't just stop at their name and address.
Marketing influencer Marketing Max says that brands need to prioritize asking the right questions.
“I think most brands think first-party data is just name and email,” he says. “In the right context, you can ask for anything! Shirt size, how many siblings they have, birthdays, if they speak other languages, hobbies, how many followers they might have on any given platform.
“The more data you have on a customer or potential customer, the easier it is to build brand affinity and really connect with your audience to drive more revenue.”
Lack of a plan and unified approach
Gathering and then using first-party data requires a plan. Without it, marketers may find they have piles of data they don't know what to do with. Your data management plan needs to cover which data to collect and how to analyze and activate it across all touchpoints and systems.
Start by setting customer experience and ad campaign revenue goals, making sure all departments and channels are aligned. When data collection and analysis happen in silos, valuable insights can be lost.
For example, let's say you want to improve average order value and make it easier for customers to find the products they're looking for. Based on this goal, you could invest in quizzes and website data trackers that identify customer preferences. Then you could use the first-party data to suggest relevant product bundles to customers—improving their search experience on your site and encouraging them to purchase more.
A unified approach sets up your brand to collect and integrate relevant customer data without overwhelming them. A solid plan allows you to make the most of your data points.
Not using the data properly
Collecting first-party data is the easy part—but how are you meant to maximize its use? This step can be more challenging for brands.
Joanna Penn, of Armadillo, explains that not correctly using the data your brand worked so hard to collect is a missed chance to connect with customers.
“The main problem is retailers collecting a wealth of data on an individual and then not using it to personalize their experience; it's a wasted opportunity to show me you know and value me as a customer,” she says.
Shopify offers several tools to help you make the most of your data:
- Shopify Segmentation: Allows you to create targeted groups based on purchasing behavior, location, and engagement levels, and run personalized experiences at scale
- Shopify Collective: Allows for collaborative selling and data sharing between trusted brand partners, expanding your reach while maintaining control over customer relationships
- Shopify Audiences: Turns your first-party data into actionable advertising insights. This Plus-exclusive tool uses commerce insights across Shopify to help you find and target high-intent buyers, potentially reducing customer acquisition costs by up to 50%.
- Shopify Collabs: Helps you partner with creators and influencers who authentically represent your brand, tracking performance through unique discount codes and referral links.
“First-party data collected and applied correctly can help your brand stand out amongst the mega brands. No matter if you are a smaller independent, once you have that customer and their permission you can have a proper 1-2-1 relationship, extending your brand's personality through communications and conversation,” says Joanna.
The key is to act quickly when your data is fresh and most relevant. Instead of letting valuable insights sit unused in a database, use Shopify's analytics tools to immediately influence your customer experience and advertising strategies.
Whether it's through targeted email campaigns, personalized product recommendations, or strategic partnerships, showing customers you understand their preferences can significantly impact engagement and loyalty.
Not building trust with customers
People want clarity on how their personal data is used by brands. Brands need to win consumers' trust by demonstrating they're responsible with data. You also need to show customers they'll get more value from your brand by sharing information.
When building trust, it's vital to respect people's privacy. Adhere to data privacy laws and consider what data you actually need for your marketing efforts. There's no point asking someone's shoe size if you sell hair products. Going overboard in your data requests may have the adverse effect of coming across as creepy.
Aleksandra Korczynska, CMO at GetResponse, says that asking for too much from shoppers may cause them to leave: “The main mistake is asking for too much data from your customer. That's one of the popular reasons for cart abandonments.”
While you're planning your first-party data strategy, ask yourself, “Have we made it clear to customers what the benefits of sharing their data with us are?”
Proper consent management is also vital—not only because it's the law, but also to build customers' trust that you have their best interests in mind. Online stores must prioritize including consent forms on their website or app.
Build consumer trust by implementing solid data governance policies. By managing data effectively and following policies designed to keep it safe, you can prevent breaches while enhancing data accuracy and usability.
Start using first-party data in your organization today
As privacy regulations tighten and third-party cookies are phased out, first-party data is becoming more critical for success. From deeper customer insights to better ROI, the benefits are clear.
Shopify leads the way of this evolution. With integrated tools like Shopify Audiences and Segmentation, you can collect and integrate first-party data into your campaigns and drive growth for your organization.
