As businesses continue to become more reliant on technology, organizations are searching for new ways to remain relevant to their customers. This trend has made it clear to sales and marketing professionals that second- and third-party data is not as accurate as first-party data.
What is first-party data?
First-party data is basic information that companies collect to boost revenue, profits and connections with their customers. This information includes names, phone numbers and email addresses. First-party data also gathers purchase information like invoices and payments. Other noteworthy details include age, gender, income and employment.
There are several methods for accumulating first-party data involving the company, the customer and no one in between. Email and Short Message Services (SMS) are traditional options that can give insight into click-through rates with promising conversion percentages. Live chats are an emerging option for collecting first-party data because studies show that customers prefer interacting with companies this way. For more involved sources of first-party data, surveys often provide you with better answers since an individual is dedicating time to give constructive feedback. You can offer an incentive to encourage customers to respond to a survey.
Why is first-party data important?
Companies collect first-party data by observing a consumer’s purchase history, digital interactions, behaviors and preferences. This information isn’t solely used for businesses to interact with individual customers. Companies can also reap the benefits of first-party data for business-to-business (B2B) connections. Aside from cultivating brand loyalty, here are some more reasons why you want first-party data in your B2B prospects lists:
1. Develop a targeted audience
First-party data allows companies to finetune their target audience with specific factors like demographics, geographical locations and interests. This data also gives you the opportunity to follow a customer’s buying journey, providing you with a better understanding of their purchasing habits. It is imperative to have relevant information on your target audience to boost the efficiency of your marketing efforts. By dividing your audience into segments and targeting them, you improve your chances of getting better returns on investments.
2. Build trust with your customers
Be transparent with the customers you conduct business with. Remember, your customers choose what information they are comfortable relaying to you. Be upfront about how you intend to use their first-party data, allowing you to build trust with them. In doing so, you can prove that you are reliable and increase the opportunity of being referred to by other businesses.
3. Get control over the data you receive
Something commonly overlooked when receiving second- and third-party data is that those businesses can choose what information to divulge. When using first-party data, you remove the risk of using inaccurate information. When the information you receive is subpar, you miss out on developing meaningful B2B connections.
4. Create better digital marketing campaigns
Optimize your marketing campaigns by utilizing the knowledge gained from studying your segmented audience and their interactions. Use first-party data to create upselling and cross-selling campaigns that will increase B2B revenue. Since collecting first-party data is economical and less time-consuming than other data types, you can dedicate more energy to creating better-targeted marketing campaigns.
5. Enhance your relevancy and customer experience
Building brand awareness is an invaluable tactic in the B2B world. It’s essential to use accurate first-party data to help you develop unique experiences for your consumers based on their interests. You need to stay relevant in the ever-evolving digital world. By offering a personalized experience, you enhance a company’s likelihood of doing business with you.
Receive first-party data with a click of your mouse
Are you looking for a reliable source to help you collect first-party data to enhance your company’s sales and marketing efforts? Do you also want to save time and effort developing B2B prospect lists? BizLeads can help.
Bizleads, a powerful sales prospecting tool from American City Business Journals, can help your business generate new leads lists. BizLeads allows subscribers to access private company data, including verified email addresses and customer profiles. Because of BizLeads relationship with The Business Journals, subscribers have access to first-party data on decision-maker prospects from over 30 million company profiles and 90 million contacts.
Ready to generate a targeted B2B prospects lists to increase your market outreach?