Written by: Eric Yaillen, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
For any business, and especially as a coach, marketing is the lifeblood of your business. Without it, you’ll struggle to reach new clients, connect with existing ones, and grow your business.
You’ve probably heard from many marketing coaches that the key to long term success is building your list. How you do that depends on where you source your data.
For years, most people relied on third-party data. But under changes to Privacy Laws such as GDPR (the European Union’s General Data Protection Regulation) and CCPA (California Consumer Privacy Act) there are risks if you improperly use this data.
Rather than viewing this as a burden, many marketers are moving away from third-party data and instead looking for ways to acquire first party data.
The evolving landscape of data privacy and the increasing demand for transparency, all marketers must adapt their practices to ensure compliance and build trust with their customers.
In this article, we will explore the difference between third-party data and first-party data and discuss why, in light of changing privacy laws, it is crucial to make changes to how we sell goods and services.
So, let's dive in!
What is third-party data?
Third-party data refers to information collected by businesses without a direct relationship with the prospective customer.
It encompasses a wide range of data compiled from, well… 3rd-parties, of course! Up until now, this type of data was collected using what is known as a third-party data cookie.
Cookies are small pieces of code placed in internet browsers that distinguish between website visitors. An example of that is the Facebook Pixel which helps gather useful information on all consumer activities for the purpose of targeting advertising.
However, the use of third-party data cookies is facing significant changes. Most browsers are phasing out support for third-party cookies, and browser settings now allow you to reject many of these cookies. This shift is driven by privacy concerns and the need for explicit consent in data collection practices. European laws, followed by similar actions in California and other regions, require disclosure and consent for the use of cookies.
Google, a major player in the online advertising industry, has also announced plans to phase out third-party cookies, indicating its ultimate demise. It’s also one of the reasons why Google is ending its Universal Analytics (UA) and forcing all website owners that want this data to transition to their new G4 Analytics.
So, how valuable is it really beyond building lookalike audiences in your paid digital ad campaigns. Consider third-party data as little more than supplemental information.
Ultimately the best way to supercharge your marketing campaigns and take it to the next level is when you can leverage your first-party data.
What is first-party data?
In contrast, first-party data cookies are expected to persist in the future.
The key difference between third-party data cookies and first-party data cookies is in their purpose and ownership.
While third-party cookies are created and used by external entities for tracking and advertising purposes, first-party cookies are used by website owners to improve interactions with prospects and customers.
It’s your data, and it is unique to your business. It’s also highly valuable as it provides you with the very best insight into your target audience's behavior, preferences, and interests. These cookies collect information directly from user interactions with your website.
Note: When it comes to Facebook's Pixel, the default setting is for both first and third-party cookies. However, users have the ability to update their Facebook ad preferences at any time.
Why coaches need first-party data
Coaches, or any business for that matter, need first-party data for many reasons. Here are just a few:
Better targeting. One of the biggest advantages of first-party data is that it allows you to create highly targeted marketing campaigns. By analyzing the data you have collected from your clients, you can segment them into specific groups based on their interests, behaviors, and preferences. This allows you to create tailored marketing campaigns that are more likely to resonate with your audience, resulting in higher engagement and conversion rates.
Improved personalization. Personalization is key in marketing. With first-party data, you can create highly personalized marketing campaigns that are tailored to each individual's specific needs and preferences. This not only helps to improve engagement rates but also helps to build stronger relationships with your clients.
Behavioral triggers. First-party data enables you to leverage customer behavior in your email and SMS marketing automation. By tracking user actions and interactions, you can automatically trigger personalized messages to engage users at the right moment. Enhancing the relevance and timeliness of marketing communications, increasing the likelihood of conversion.
Customer lifecycle marketing: From onboarding to post-purchase follow-ups, personalized lifecycle marketing nurtures customer relationships and drives repeat business.
Increased ROI. By using first-party data to create highly targeted and personalized marketing campaigns, you’re likely to see a significant increase in your ROI. This is because you’re only targeting individuals who are highly likely to be interested in your services, resulting in a higher conversion rate.
Compliance with privacy regulations. By collecting data directly from your customers, you can ensure that you have obtained their consent and that you are using their data in a responsible and transparent manner.
How to collect first-party data
Collecting first-party data is easier than you might think. Here are a few ways you can collect first-party data:
Newsletter sign-ups Encourage your clients to sign up for your newsletter to receive updates, news, and promotions. This is a great way to collect first-party data as it provides you with their contact information and permission to communicate with them.
Social media engagement Engage with your clients on social media by responding to comments, creating polls, and hosting Q&A sessions. This helps you to collect valuable data about your audience's interests and preferences.
Website analytics Use website analytics tools like Google Analytics to track user behavior on your website. This provides you with valuable data on how your audience interacts with your website, what pages they visit, and how long they spend on each page. In our next column, we will explore how to best implement the new G4 Analytics from Google.
Surveys and feedback forms Create surveys and feedback forms to collect data directly from your clients. This helps you to gain insights into their preferences, pain points, and how you can improve your services.
The ability to gather first party data is a core approach that we take to help businesses and it is integral to our MegaFluence Suite, all in one marketing automation platform.”
It gives coaches unlimited potential in growing their lists through lead capture forms, sales funnels, surveys and in collecting information from social media. And we also make it easy to add first-party data cookies to your websites and pages.
Conclusion
In today's digital world, data is a valuable asset that fuels marketing strategies and drives business growth. However, with
The importance of making changes to how we market goods and services in response to changing privacy laws cannot be overstated. Embracing first-party data is not only essential for compliance but can also enable your business to create more personalized experiences through enhanced targeting and segmentation.
This also helps you to build stronger customer relationships.
By placing a greater emphasis on first-party data collection and usage, marketers can navigate the evolving data privacy landscape and drive effective marketing strategies.
To learn more about leveraging first-party data and unlocking its full potential, I invite you to download our free ebook, "The Ultimate Guide to First-Party Data," available at firstpartydataleads.net.
By accessing this valuable resource, you'll gain insights into maximizing the benefits of
first-party data and even receive the exclusive opportunity to receive 10 FREE leads per month for a lifetime. Don't miss out on this game-changing opportunity to elevate your marketing efforts with first-party data!
Eric Yaillen, Executive Contributor Brainz Magazine
Known as a Marketing Technology Wizard, Eric helps his clients save countless hours and expense by streamlining their processes and eliminating unnecessary systems for managing customer information and marketing programs. As the creator of The MegaFluence Method, he applies his extensive knowledge and decades of experience coaching businesses on becoming market leaders in their niche. Email him at eric@cognilogicfx.com or go to megafluence.net/eric for a free 30-minute introductory business analysis.
