What is first-party data and how to use it?

First-party data is information collected from an individual via direct interaction with them, bypassing all the mediators. Many of you could be familiar with the phrase “third-party”. Privacy policies always explain how and when personal information can be shared with third parties. When you visit a new website, you are often asked to accept third-party cookies, and so on. 

Surprisingly, third-party data collection is not as crucial for marketing as it may seem. It is fair to mention here that zero-party data neither is. Nowadays, most service providers focus on first-party data collection. We bet if you are not deeply into marketing subtleties, you may have never heard about it until now, but no worries. We are here to explain everything.

First-party data explained

To make everything as clear as possible, let’s go through some examples of first-party data. Your customer opens your website or online shop and adds some items to their cart. The service immediately gets the information about their needs at that particular moment

Next, you can start offering accompanying goods or items from the same categories and with similar characteristics for a lower price. The contents of their cart are the first-party data, in this case, and all the offers you give them - how your business can use such data.

Here is the list of the most popular first-party data examples you can encounter interacting with different websites and businesses online:

• pages visited;
• products viewed;
• products purchased;
• CRM data;
• information shared with support;
• information on the app usage (for mobile devices);
• surveys;
• newsletters and promotional materials the users sign up for.

Of course, there can be something we missed in this list. We did our best to highlight the main types of first-party data, and we bet you have come across at least some of them (if not all) in your life.

Why collect first-party data?

Why is first-party data important for businesses? If you haven’t gotten it yet - it really is; entrepreneurs continuously look for better, more reliable, and effective solutions to gather first-party data about their potential and existing clients. Why is it so?

This information allows them to better understand their customers and, as a result, find more suitable goods and services to offer them. However, the detailed explanation of why companies strive to gather first-party customer data goes far beyond the concept described above.

1. Advantage over competitors. Business sharks are in an actual digital war, looking for methods to gather and use information about their users more effectively. The one who possesses the information possesses the power. As a pleasant bonus, they pay less for advertising and get better benefits for their marketing efforts.
2. Ad targeting. First-party data marketing is often built around the target ads, which allows businesses to understand their customers better and offer them what they want. Have you ever noticed that after you start googling, say, reviews for headphones, many platforms begin showing you advertisements for headphones? It is not because the FBI listens to you 24/7. It is because internet businesses have an insight into your desires.
3. Security and privacy. In the first-party data vs. third-party data battle, the titular type for this article wins. Customers share their data with the company directly, which preserves GDPR, CCPA, and other regulations.
4. Better accuracy. Information collected directly from the customers is more accurate than anything you get in the form of third-party data. Of course, sometimes, when you work with a partner, you get data via them, but it is always preferable to access it directly, which is the case with the first-party one.

If you are not a business or website owner, everything we mentioned here may not be of great importance. However, if you are in marketing and online sales, every item from the list above should find an echo in your heart.

How to collect first-party data?

Here's how to collect first-party data effectively: begin by integrating tracking mechanisms like Google Tag Manager or server-side tags, ensuring that you capture user interactions across your website or app. Use tools such as custom tags, consent management platforms, and analytics to gather data on user behavior, purchases, and preferences.

Make sure to comply with privacy regulations like GDPR by obtaining explicit consent when necessary and storing the data securely for future use in personalized marketing campaigns.

The main thing you should be aware of when using any first-party data platform is the GDPR and local privacy laws in the area you are getting the data from. To avoid any issues, it is a great idea to use a specialized server-side tracking service, like Stape, to do all the work and ensure that all the rules are followed for you.

Advanced practices for collecting first-party data

If your main aim is first-party data targeting to boost your business, you can reinforce the essential tools with more advanced practices of information collection and processing.

1. Cross-device tracking. This usually works on third-party cookies, but it's becoming inefficient due to ITP and other limitations. As an alternative, it can be configured for first-party data using fingerprinting, user ID, and similar technologies for authorized users.
2. Unfortunately, many people ignore conversions made via phone/e-mail/SMS, etc., data about which is extremely useful for marketing platforms and analytics. We highly recommend you collect this data and send it to analytical platforms for better performance and results. 
3. The importance of first-party data centralized storage is difficult to underestimate. Create a data warehouse where all the received information is sent for higher security and faster analytics.

One of the main benefits of first-party data, apart from accuracy and security, is the variety of collection methods and usage options, as well as the existence of services that can assist you in collecting it, like Stape.

How to use first-party data for marketing strategy?

Now that we know what is first-party data, it is time to discuss how and when it can be used and, generally, what its importance is. The main reason it is worth moving to use this type of data nowadays is because the third-party cookies, which have been used to collect information about customers, are getting blocked by many browsers with the aim of protecting personal data. Although not all third-party cookies are getting blocked now, switching to first-party data is definitely a far-sighted solution.

First-party data advertising is also popular on commercial platforms. E-mail and SMS personalization based on this information allows potential clients to be offered specific products based on their browsing and purchase history. Dynamic website offers tailored services based on first-party data, creating a client-in-the-center atmosphere and improving the customer experience.

Finally, users will feel more protected if you create a first data consent center where they can set up and change their preferences whenever they need to. Collect only the information you have obtained consent for to comply with GDPR/CCPA. This would increase trust between business and client and, as a result, lead to better interaction and potentially higher profits.

Legal considerations and data privacy

We have mentioned GDPR and data privacy a lot in this article, but what exactly is meant by these scary words, and how are they linked with first-party data? The main aim of all these protocols and regulations is to ensure that users know first-party data definition and can control the information they agree to share with a website. There are 3 golden rules for how to ensure that you collect information about users not breaking any laws and rules:

• always provide a clear and understandable privacy policy, where you explain what data is collected, at what moment, and in what way;
• give users the right to manage and withdraw the data they do not want to be collected by implementing Consent Banners;
• use a straightforward mechanism for data collection.

Implementing consent management platforms for your products is the most optimal and reliable way to collect all the needed consents and protect yourself from legal problems.

Best tools and platforms for collecting first-party data

First-party data for b2b sales and marketing is used widely nowadays, and, as a result, there are many tools and services that make this process easier, safer, and more convenient. Obviously, on the top of this list is the last version of Google Analytics. It is hard to imagine how to track user engagement and interaction with a website without it. Now, what are the other titles that could help with that?

1. Stape. It is a server-side tracking platform created to help businesses collect, process, and send first-party data to multiple destinations, including GA4, TikTok Events API, Meta CAPI, Snapchat CAPI, and other marketing and analytics tools.
2. Matomo. It is a system similar to GA4 and a bold accent on privacy, which operates with first-party data.
3. Server-side Google Tag Manager. It is a popular title that is used to improve data accuracy and reduce data loss, preserving the clients' privacy settings.
4. Blue Conic. First-party data is often used to personalize the visitor’s experience with the website, and Blue Conic helps to create and store unique customer profiles, simplifying this process for the future.
5. Google Consent Mode. Yes, it is not a tool or platform, but it helps you to ensure that you are on the safe side and do not accidentally break any regulations. Thus, we decided to add it here because it will definitely make your life easier.
6. Snowflake. This cloud data warehouse is a decent option for storing the collected first-party data safely.

Of course, our list does not cover all the options, and if you have great experience with other titles, share them with your friends and colleagues. The tools and platforms we mention here are decent and reliable options that have proven their effectiveness over time.

First-party data vs. third-party data

Third-party data slowly becomes a relic of the past, coinciding with its counterpart in almost everything. However, if you require a direct comparison, we have you covered.

There are no objective reasons to keep using third-party data in 2025, considering the variety of applications, tools, and services that will help you and explain how to use first-party data.

FAQ

Is first-party data secure?

It is more secure than third-party data, but the business side is responsible for everything. They must protect their servers from breaches and unauthorized access and follow all privacy regulations. 

How does first-party data improve customer experience?

It can be described in two words: personalization and security. What is first-party data in marketing? It is information collected directly from a user with their consent. This means there are fewer chances that the data will be stolen during processing, and the business will be able to tailor more personalized content/offers for the customer.

What does first-party mean?

First-party data meaning is straightforward and, in some ways, even obvious: it is data collected directly from a person or client. No mediators or third-party services are involved in this process, which increases the privacy and accuracy of transferred information.

Conclusion

If you haven’t done this yet, we recommend that you switch to gathering first-party data. It is more accurate, secure, and improves the customer experience, leading to higher profits and more clients. If you are not sure you can set everything up correctly, it's not a big deal. Services like Stape, Matomo, GA4, etc., and many others will take responsibility for this. The only thing you need to do is decide to move forward with better technologies.