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15 reasons first-party data is the future of personalization and growth

Author: Laura Ballam


Without first-party data, everything that’s important to marketing and fraud departments is compromised. Specifically, leveraging your first-party data in the right way is critical to personalization and fraud prevention as part of your growth strategy.

It’s no secret that marketers are worried about the looming deprecation of third-party cookies. The impact on personalizing marketing and advertising campaigns, optimizing performance, and demonstrating ROI is a huge concern. Experts across the globe are predicting it will have an even bigger impact than GDPR, which by the way is still also an important factor in data compliance. Similarly, fraud departments are trying to actively detect and prevent fraud, while navigating the ever-changing landscape of identification.

Historically, third-party cookies have been used to create identifiers which help marketers (and risk analysts) better understand their consumers to provide a superior experience and optimize spend. However, with a solution that maximizes the use of first-party data and related identifiers, marketers can continue delivering online personalization without the need for third-party IDs (3PIDs). At the same time, fraud specialists can ensure a positive customer experience while still detecting and preventing fraud in real-time.

Here are 15 key benefits first-party data can provide, when leveraged in the right way:

  1. It avoids cookie deprecation issues – important behavior tracking isn’t blocked  
  2. It delivers full enterprise control of all data, including PII
  3. It facilitates full first-party identity tracking in real-time, across instances and over time, fueling a deeper understanding of the customer journey and state
  4. Using a combination of identifiers, first-party data builds a strong identity that enables cross-channel personalization and intelligent retargeting
  5. It enables full context profile building through behavioral stitching across channels, devices, and across journeys
  6. It enables the compilation of customer profiles across lines of business and brands to better understand customer behavior
  7. It powers contextualized, individual-level intelligence through PII enablement with no data gaps, and the ability to create a segment of one
  8. It powers in-the-moment personalization with zero latency to enable real-time response to individual behaviors and interests in the blink of an eye
  9. It delivers full campaign attribution which is essential for paid media spend and marketing effectiveness tracking
  10. All behaviors can be tracked at an individual level through a data science-led approach using a mature, structured, auto-populated data model
  11. It ensures consent choices are recorded and maintained for compliance purposes – no legislative risk and better customer experience
  12. Fraud detection and prevention abilities can be activated building on the captured data whereas third-party data is limited by anonymity and data gaps
  13. Effective customer fraud warnings are activated through real-time capabilities and the ability to intervene in the journey
  14. Full first-party data streams ensure the ability to detect emerging threats and understand trends
  15. Structured data with PII references ensure explainability when engaging with a customer or fraudster

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