How to Build a Company First Party Data Strategy

The chances of your business getting into legal trouble for using information received from questionable sources that may have received it in questionable ways are getting higher almost on a daily basis.

First-party data, on the contrary, comes directly from the customers and with their consent. This makes it a much more reliable and safe data source for companies (especially those working in the B2B segment).

If you are intrigued but have a blurred vision of what a first-party data strategy is and how to develop it, we will do our best to help you at least with the basics.

Understanding The Value of First-Party Data in the B2B World

Surprisingly, in the B2B segment, first-party data is one of the most valuable assets (if not the most valuable one) that a company can own. It is so because this type of data is collected directly from the customers. Which means it is cleaner, more reliable, and more up-to-date. This helps to improve the business’s decision-making, build stronger relationships with the customers, and guarantee more effective marketing activity.

We understand that “more reliable” and “more up-to-date” may sound too abstract, and we are ready to come up with a more detailed review of all the advantages that first-party data has for B2B.

1. Improved personalization. When someone claims that personalized experience is the very gap between closing the deal and not, there is no exaggeration in this statement. First-party data is the tool that allows companies to create offers and content tailored for each client specifically, focusing on their needs and pain points. McKinsey and Company consulting firm has found out that even in the COVID years, a personalized approach increased the amount sold on average by 40%, and this is in the times of a global crisis. Expected gains nowadays can be even higher.
2. Better lead scoring. The sales cycle for many B2B companies is long and consists of many stages (sometimes more than a dozen). If marketers can receive reports on the customers’ behaviour on each stage directly from their computers, it helps them understand the level of engagement and which stages problems arise. By analyzing this information, the sales funnel can be adjusted to better fit the customers’ expectations and be more effective for the business.
3. Increased retention rate. Gaining new customers is often more difficult than keeping the old ones. However, even this is an uneasy task that requires expertise and a clear understanding of what to do. First-party data helps to monitor patterns, feedback, and renewal rates. In this way, businesses can anticipate the client’s further actions and plan their response in advance, setting a goal of retaining a customer as long as possible.
4. Further product development. The first step to improving your product or service is to have a clear vision of what customers need and what their main problems are. Modern trends and novelties can be combined with the analysis of customer behaviour and feedback to understand the areas for improvement and start working in that direction.

Of course, we should also not forget about the evergreen issue of customer privacy. Data acquired from the third-party platforms is not compliant with GDPR and CCPA, and thus, using it may bring legal issues to your business. 

When it comes to first-party data, customers must give their permission for the process. Therefore, such data is considered legally acquired and can be used for analytics without any hesitation.

First-Party Data Collection Framework

If there are no questions left about why first-party data is so crucial for the B2B segment, it is time to move to the topic of its collecting, leveraging, and managing. In its essence, the whole process can be divided into 4 basic stages.

Stage 1. Decide on what data is essential for the business. Here is a list of the most popular types of customer information companies working in the B2B segment are interested in obtaining.

1. Customer demographics: industry, size, job roles, contact details, location.
2. Behavioral data: the most popular ways and patterns in how visitors interact with your website.
3. Transactional data: purchase history, frequency, preferences, etc., especially useful for e-commerce platforms.

Clarify your needs and expected results to get a clear picture of what customer data you need.

Stage 2. Start integrating into your business data collection tools that would best fit the type of data needed.

1. Forms and surveys are great for understanding the customers’ needs and concerns by getting their direct comments.
2. Web analytics tools, such as GA4, help to track customer behavior and understand their engagement patterns (especially if it is configured via server GTM). In the case of Facebook, you can alternatively set up the Facebook Conversions API on the cloud server and achieve similar results.
3. CRM systems will help you organize all customer interactions and view the customer lifecycle as a whole.

Select the most convenient method, or several; there is no rule that you must only stick to one of them.

Stage 3. Set up data storage and management practices. Collecting data is only half a task. After you do that, you must organize and secure storage for this data where it can be managed effectively. There are two main points you must focus on.

1. Data security. Implement clear consent mechanisms to ensure that all the data you get is compliant with GDPR and CCPA.
2. Data quality. Review the data regularly and ensure that there is no outdated information, duplicates, or inaccuracies.

One possible solution to this matter is using a data warehouse. However, cloud storage is becoming increasingly popular nowadays.

Stage 4. Have a data utilization plan. If you are serious about a first-party data strategy, you must have an idea of how you will effectively utilize all the received and gathered data. Data should be segmented and categorized. All your teams must have easy access to the data and the analytics results.

Ensure that the data is not only gathered but also used effectively, and that you consider all the information it provides in your further work.

Of course, each case is individual, and depending on the industry you work in and the processes you have set up, the whole strategy may be more complicated. However, the steps provided here are the basics to scaffold your first-party data collection and usage, and build all the additional aspects you may need on top of it.

Using First-Party Data for B2B Marketing Campaigns

The main point to realize when using first-party data is that it is used not only to execute marketing campaigns but also to optimize and improve them constantly.

When you have a better understanding of what is working and what is not, you have more flexibility in actions and a clearer view of your business's future. Now, we will provide you with some applied examples of how first-party data can be beneficial for B2B marketing.

Personalized Email Campaigns

A software company that operates in the B2B segment collects first-party data through its website: pages viewed, interactions, account details, etc. This information can be later used for better personalization.

For instance, a prospect from the healthcare industry downloads a brochure from the website. 
The company can follow up with a personalized email that describes the services the business offers in the healthcare sector and scaffolds it with case studies and success stories. This will enhance the likelihood of conversion and generally improve the customer experience.

Account-Based Marketing

A B2B cybersecurity company collects data about accounts that engage with their content and constantly read their blogs. This allows them to identify a pool of potential customers who are already highly interested in the topic and run an account-based marketing campaign.

The cybersecurity company can customize its offers to address the potential risks of its potential clients and even offer personalized demos. Needless to say, such an approach drastically increases the chances of getting new clients.

Sales Outreach Optimization

A B2B firm that sells enterprise software observes which pages potential clients open on their website. If a lead has viewed the page with payment plans multiple times but hasn’t requested a demo or purchased any of the plans, the company can offer a personalized promotion or personal consultation. Such an approach improves the chances of closing the deal and makes the overall conversation more relevant.

There are only a few examples of how a clear and effective first-party data strategy can be useful for a B2B company. Of course, they are not the only ones, and depending on each particular business, there can be dozens. If you are already using first-party data in your company, do not hesitate to share your cases and examples!

Don’t Wait: Start Building Your First-Party Data Strategy Now

Businesses that want to be successful in the current realia must adapt to the new trends and industry requirements. Usage of first-party data is not a must yet, but it may become so soon. In addition to that, it already helps B2B companies to improve their services and increase the level of personalization when working with their clients.

Thus, having a clear and effective first-party data strategy now is a huge plus, and companies that already have one definitely have an advantage over those that don’t. 

About the Author

Ivanna Holubovska The easiest way to server-side tracking at Stape

Setting up server-side tracking can be challenging. Get started right away with stape's comprehensive suite of services. We offer Google Tag Manager and Facebook CAPI Gateway hosting. You can also get a professional audit, consultation, or server-side tracking setup from our agency. 

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