When it comes to e-commerce marketing, data is invaluable. However, there are several different categories of data that a business can collect, and each one comes with its own unique benefits and considerations. In this article, we'll be taking a look at first-party data to define what it is, why it matters, and how you can leverage it to increase your business's profits.

What Is First Party Data?

There are three different categories of customer data defined based on how that data was collected — first-, second-, and third-party data.

Second- and third-party data both come from outside sources. In the case of second-party data, the data is shared by a partner company, while third-party data is data that is purchased from data aggregator companies.

First-party data, on the other hand, is data that you collect yourself, and it is the most valuable of the three types. First-party data can be obtained in several ways, from website analytic platforms to surveys to CRM systems and everything in-between.

Why Is First Party Data Important?

Unlike second- or third-party data, first-party data is data that you collect directly from your existing customers. This makes first-party data a powerful tool for creating effective retargeting campaigns aimed at your existing customer base.

First-party data provides vital information about your current customers, including things such as their past purchases, average order value (AOV), product interests, and more.

This information enables you to customize the retargeting ad campaigns that you create in a way that will deliver optimum results. It also allows you to focus your marketing efforts on the customers with the highest lifetime value and/or AOV, helping to improve the profitability of your marketing campaigns.

If you want to see an example of a company that uses first-party data with excellent results, consider Amazon, who has relied heavily on first-party data to become the most successful e-commerce platform that the world has ever seen. Amazon collects tons of data on their customers then uses that data to make personalized product recommendations through on-site ads, email campaigns, and more.

It's easy to see how Amazon has used first-party data with exceptional results, but you don't have to be an e-commerce giant to make use of first-party data. Thanks to a wide range of readily available tools, collecting first-party data is now easier than ever before, even for small to medium-sized businesses. Of course, collecting data on your customers is only half the battle — effectively organizing your data and putting it to work is the next, all-important step in leveraging the benefits of first-party data.

How to Make the Most of First Party Data

Once you begin collecting first-party data — and there are many different ways to go about this — you'll then want to organize that data effectively. A confusing jumble of unorganized information is almost impossible to analyze and use, making data organization one of the most critical aspects of putting first-party data to use.

First-party data organization is DataQ's specialty. We take the chaos out of your data and provide you with actionable insights that you can immediately put into play in your paid media campaigns.

Once your data has been adequately organized, the sky's the limit for how you put that data to work. First-party data is especially useful for creating customized retargeting campaigns, but the possibilities certainly don't end there. In addition to helping you create personalized campaigns targeted at your most valuable customers, analyzing your first-party data can also enable you to create a more complete profile of your ideal customer and learn key insights regarding the needs and wants of your customers. Moreover, if organized accordingly, you can use your first-party data to create lookalike audiences in Facebook Ads and similar lists in Google Ads  to attract high-quality customers.


Fully leveraging all of the benefits that first-party data has to offer comes with many challenges.

At DataQ, however, we are dedicated to helping business owners just like you effectively organize the data that they collect and put that data to work through our industry-leading software.

DataQ takes the confusing parts out of data organization and instantly unifies it into a set of useful data that is easy to analyze and use. If you would like to see for yourself how DataQ can help you take full advantage of your first party data, we encourage you to sign up for a FREE TRIAL today.