First-party data is information a company collects directly from its customers through owned channels like websites, apps, transactions, and customer interactions.
Unlike third-party data purchased from external sources, first-party data comes straight from your audience, making it more accurate, privacy-compliant, and valuable for personalized marketing.
According to Acquia’s 2024 CX Trends Report, 93% of marketers believe collecting first-party data is more critical than ever for an organization.
This data type is viewed as the most valuable for businesses because it’s obtained with customer consent, reflects actual behavior, and helps companies build trust while staying compliant with privacy regulations like GDPR and CCPA.
In this guide, you’ll learn how to effectively collect and use first-party data to create better marketing strategies while respecting customer privacy. We’ll also introduce you to zero-party data, which is becoming increasingly important in the data collection landscape.
Key takeaways
- First-party data is collected directly from your customers through websites, apps, purchases, and interactions – making it more accurate than data from external sources
- Collection methods include analytics platforms, CRM systems, surveys, newsletter sign-ups, and customer feedback forms
- Main benefits: Better personalization, improved segmentation, higher customer retention, more effective ad campaigns, and enhanced user experiences
- Zero-party data (information customers voluntarily share, like preferences) is increasingly valuable alongside observed first-party data
- Privacy compliance is built in when you collect first-party data responsibly with proper consent
Table of contents
- Understanding different types of customer data
- What is first-party data?
- How to collect first-party data effectively
- What is zero-party data and why does it matter?
- First-party vs. second-party vs. third-party data
- How can a first-party data strategy improve your marketing results?
- First-party data marketing and privacy: What’s next?
- Taking your first-party data strategy to the next level
- FAQ: Common questions about first-party data
- Why is first-party data more valuable than third-party data?
- Is first-party data GDPR compliant?
- How long should you store first-party data?
- Can first-party data be shared with third parties?
- What’s the difference between first-party and zero-party data?
- How much first-party data do I need to start seeing results?
- What happens to first-party data if a customer deletes their account?
Understanding different types of customer data
Customer data comes from various sources, each with different levels of accuracy, privacy compliance, and business value. Choosing the right data collection method depends on your business objectives, privacy requirements, and the insights you need.
Here’s a quick comparison of the main data types:
| Data type | Source | Accuracy | Privacy compliance | Cost | Best for |
|---|---|---|---|---|---|
| First-party | Direct from your customers | High | High | Low | Personalization, retention, targeting |
| Zero-party | Voluntarily shared by customers | Highest | Highest | Low | Understanding preferences and intent |
| Second-party | Partner’s first-party data | Medium-High | Medium-High | Medium | Audience expansion, co-marketing |
| Third-party | External data aggregators | Variable | Low | High | Broad market insights (declining) |
What is first-party data?
Definition: First-party data is information gathered directly from your customers or users through interactions with your owned channels and platforms.
Types of first-party data companies collect
First-party data includes several categories:
- Website and app interactions: Web analytics, user registrations, browsing behavior, page views, time spent on site, and navigation patterns.
- Transactional data: Purchase history, order details, cart abandonment, transaction frequency, and average order value.
- Customer feedback: Survey responses, product reviews, feedback forms, and support interactions.
- CRM data: Customer relationship information stored in CRM platforms, including communication history and account details.
- Engagement metrics: Email opens and clicks, content downloads, video views, and form submissions.
Why first-party data is more valuable
In the case of first-party data, customers provide their details directly to your company, creating a higher level of trust. They share information willingly, and you know it’s an accurate reflection of their actual interests and behavior.
The research from Forrester Consulting in 2024 found that incorporating first-party customer behavioral data into marketing strategies reduces customer acquisition costs by 83%, and improves customer satisfaction by 78%, brand awareness by 75%, conversion by 73%, and ROI by 72%.
First-party data is also more accurate than other data types because it comes from verified sources – your actual customers – rather than from aggregators whose data collection methods may be unclear.
Privacy compliance note: Collecting and using first-party data requires companies to adhere to privacy regulations and obtain proper user consent. Data privacy laws such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA) regulate how companies use and handle personal information.
How to collect first-party data effectively
There are multiple touchpoints where you can gather first-party data while providing value to your customers. Here are the most effective methods:
Analytics platforms
Implement an analytics platform on your website to track user behavior and extract valuable insights. You can analyze metrics like page views, bounce rates, time on site, and user demographics. Event tracking lets you examine specific interactions, including button clicks, downloads, and form submissions.
User registration and accounts
Encourage users to register or create accounts on your website.
This allows you to gather information like names, email addresses, and preferences during the registration process. You can then use this data to create personalized experiences and execute targeted marketing campaigns.
Email capture
Incorporate newsletter sign-up forms on your website to capture user information, especially email addresses.
Newsletter subscriptions help you build a database of engaged users and facilitate targeted communication. Contact forms with additional fields for names and relevant details also contribute valuable data.
Surveys and feedback forms
Create surveys or feedback forms to directly gather insights from website visitors. Ask questions about user preferences, satisfaction levels, and other relevant topics. Provide incentives to encourage participation and quality feedback.
Purchase data
For ecommerce websites, leverage transaction data by collecting details on purchased products, order frequency, and average order value.
This information enables personalized product recommendations that help customers make more informed shopping decisions. Read more about ecommerce tracking best practices.
Social media integration
Integrate social media platforms with your website to accumulate data on social interactions. Monitor social shares, likes, and comments associated with your content. Use social media analytics tools to gather additional insights about your audience.
Behavioral tracking
Implement tools that track user behavior, such as heatmaps and session recordings. These enable analysis of navigation patterns, dwell times, and interactive elements. Use this data to optimize user experience and tailor your content accordingly.
Popular tools for first-party data collection
- Analytics platforms: Piwik PRO Analytics Suite, Google Analytics
- CRM software: HubSpot, Salesforce
- Tag managers: Piwik PRO Tag Manager, Matomo Tag Manager
- Customer data platforms: Piwik PRO Data Activation, Tealium
- Survey tools: Mailchimp, SurveyMonkey
- Feedback platforms: Trustpilot, Reviews.io
What is zero-party data and why does it matter?
Definition: Zero-party data is information that customers intentionally and proactively share with your company. Unlike first-party data, which you observe through customer actions, zero-party data is explicitly volunteered by users themselves.
Examples of zero-party data
Customers provide zero-party data when they:
- Share their preferences for product features, content types, or communication frequency
- Complete surveys or questionnaires about their opinions, needs, or feedback
- Create user-generated content like reviews, ratings, and comments
- Make opt-in choices for newsletters, promotions, or marketing communications
- Provide personalization preferences for their user experience, such as content preferences or notification settings
- Fill out preference centers or quiz results
Why zero-party data is valuable
Zero-party data is highly valuable because it reflects explicit customer intent and preferences. There’s no guesswork involved – customers tell you exactly what they want.
The collection of zero-party data is built on trust and transparency. Companies must clearly communicate how the data will be used and give individuals control over their information. This transparent approach builds stronger customer relationships and increases data quality.
First-party vs. second-party vs. third-party data
Second-party data: What you need to know
Second-party data is another company’s first-party data that’s shared or sold directly between two parties with mutual consent. This typically occurs through trusted partnerships, collaborations, or direct agreements.
Key characteristics:
- Originates from another company’s first-party data collection
- Shared through direct partnerships with established trust
- Generally higher quality than third-party data
- Both parties exchange data with mutual consent
Common sources: Data exchange platforms (Snowflake Data Marketplace, AWS Data Exchange), APIs (REST APIs, GraphQL), data management platforms (Adobe Audience Manager, Lotame), data governance platforms (Collibra, Alation).
Since second-party data comes from trusted partners and requires customer consent, it’s more reliable than third-party data, though less valuable than your own first-party data.
Third-party data: Declining but not dead
Third-party data refers to information collected, aggregated, and sold by entities other than the one that initially collected it.
Third-party data comes in various types and is sourced from a wide range of providers, such as:
- Data brokers specializing in collecting, aggregating, and selling various data types.
- Websites that collect and share data generated by user interactions on their platforms.
- Market research companies that conduct research studies and surveys to gather data on consumer behaviors, preferences, and trends.
- Social media platforms that gather user-generated data, including profiles, interests, and social interactions.
- Location-based services that obtain location data from users’ devices, such as GPS apps, mapping services, and location-based apps.
- Surveys and panel providers that conduct surveys or maintain panels of individuals for data collection purposes.
- Ecommerce platforms that collect and store data on customer transactions, preferences, and behaviors.
Challenges with third-party data:
- Variable quality and accuracy since it comes from external sources
- Privacy concerns – individuals may not know their data is being collected
- Compliance complexity with regulations like GDPR
- Declining availability as browsers block third-party cookies
Browser changes impacting third-party data: Mozilla Firefox and Apple Safari have implemented intelligent tracking prevention (ITP) and enhanced tracking protection (ETP) to block third-party cookies by default.
As of July 2024, Google announced it will not deprecate third-party cookies in Chrome but will instead let users decide whether they want to be tracked.
However, given the web’s ongoing transition toward privacy-focused technologies, third-party cookies continue declining in importance. Learn more about preparing for a cookieless future.
Which type of customer data should you prioritize?
First-party and zero-party data are your best choices because they’re based on direct interactions and explicit consent, aligning perfectly with privacy regulations.
Second-party data can supplement your strategy through trusted partnerships, but you should verify that partners obtain proper customer consent.
Third-party data is the least reliable and raises significant privacy concerns, as it’s often collected without individuals’ knowledge or explicit consent.
Bottom line: If you want to prioritize customer privacy and trust, focus on first-party data collection, supplemented by zero-party data. It’s a more valuable source of information and a privacy-compliant way to understand your customers.
Experts opinion
Jan Sørensen
“When used responsibly, first-party data can help maintain customer relationships by providing valuable insights into their behavior. It allows for more personalized and highly tailored campaigns, enhancing engagement and satisfaction. Also, such data improves the relevance of content and offers, which leads to optimized marketing strategies.”
How can a first-party data strategy improve your marketing results?
Leveraging first-party data effectively transforms your marketing strategy. Here’s how to use it across nine key areas:
1. Personalized first-party data marketing
Use first-party data to create highly personalized campaigns that resonate with individual customers.
Marketing personalization ideas:
- Organize first-party data in a centralized CRM system for easy access and analysis
- Segment audiences based on shared characteristics to create detailed buyer personas
- Craft individualized email campaigns with tailored recommendations
- Implement dynamic website content like adaptive forms, personalized menus, real-time social feeds, or user-specific notifications
- Offer exclusive discounts or promotions aligned with customer behavior
- Create targeted social media content for specific customer segments
- Obtain consent and ensure privacy compliance when using customer data
Research shows that 80% of customers are more likely to buy from a brand that provides personalized experiences, making this one of the most valuable applications of first-party data.
Real-world example: An ecommerce retailer tracks which product categories visitors browse most frequently. When a customer who regularly views running shoes returns to the site, they see personalized homepage banners featuring a new running shoe drop and complementary products like running socks or fitness trackers.
Helpful links:
2. Segmentation and targeting
Segment your audience systematically based on directly collected information.
How to do it:
- Define key segmentation criteria such as age, location, purchase behavior, and engagement level
- Analyze data to identify patterns and behaviors
- Create distinct customer segments with detailed buyer personas
- Tailor marketing messages for each segment, including personalized emails, customized website content, and dynamic ad campaigns
- Develop offers and promotions aligned with each group’s preferences
Real-world example: A SaaS company segments users based on their feature usage patterns. They identify “power users” who use advanced features, “casual users” who only use basic functionality, and “at-risk users” who haven’t logged in recently. Each segment receives tailored email campaigns:
- Power users get advanced tips and beta feature access
- Casual users receive educational content about underutilized features
- At-risk users get re-engagement offers with customer success team outreach.
3. Customer retention
A comprehensive dataset including purchase history, preferences, and interactions is crucial for retaining customers.
Retention strategies using first-party data:
- Implement targeted email marketing campaigns that acknowledge past purchases and offer exclusive promotions
- Anticipate customer needs and provide suggestions aligned with previous choices
- Create loyalty programs and personalized incentives to reward valued customers
- Regularly assess customer feedback and satisfaction data
- Promptly address concerns to enhance the overall customer experience
Real-world example: An energy provider tracks customer portal login frequency and bill payment patterns while respecting data privacy regulations. When a previously engaged customer stops accessing their online account for 60 days (a pattern that historically precedes service cancellation), they receive:
- A personalized email highlighting new energy-saving programs they qualify for
- A summary of their year-over-year consumption savings
- An exclusive discount on smart home energy devices
4. Cross-selling and upselling
Adjust recommendations strategically based on customer preferences and interactions. Learn about ecommerce analytics strategies for better product recommendations.
Best practices:
- Build comprehensive customer profiles to understand buying behavior
- Identify natural cross-selling opportunities by analyzing purchase patterns
- Recommend related products or services that complement previous purchases
- Craft tailored upselling offers by understanding spending patterns and interests
- Present premium or upgraded options that add genuine value
- Use strategic product bundling in personalized email campaigns
- Implement dynamic website content that suggests relevant upgrades
Real-world example: An insurance company uses first-party data to offer bundled policies to existing customers while maintaining insurance data privacy compliance. When a customer with auto insurance logs in to their portal, the system checks whether they own a home and displays a personalized multi-policy discount offer. This targeted approach helps customers save money while increasing the company’s policy count per customer.
5. Optimizing ad and email marketing campaigns
Craft campaigns targeting specific customer segments with messaging that addresses individual interests.
Optimization tactics:
- Showcase products or services based on customers’ past interactions
- Send timely messages using behavioral triggers like abandoned carts or recent purchases
- Encourage engagement with customized offers and discounts based on behavior
- Maintain cross-channel consistency for a cohesive customer experience
- Conduct A/B testing on different approaches
- Create segment-specific landing pages
- Integrate customer feedback to refine messaging
Important: Follow privacy regulations and obtain explicit consent. Transparency fosters trust with customers.
Real-world example: A bank uses first-party data to personalize email campaigns by customer life stage while maintaining compliance with financial data privacy regulations. When a customer frequently checks savings account rates and uses the retirement calculator, they receive emails about investment options and retirement planning seminars. By aligning email content with actual customer interests rather than sending the same promotion to everyone, the bank improves engagement and reduces unsubscribe rates.
6. Product and service optimization
Refine your offerings based on customer data insights.
How to optimize with first-party data:
- Collect detailed feedback to understand customer experiences and expectations
- Identify recurring themes and areas for improvement
- Evaluate usage patterns and behaviors to pinpoint resonating features
- Personalize offerings according to individual preferences
- Recommend related products and anticipate future needs through predictive analytics
- Implement iterative testing and improvement strategies, including A/B testing
- Refine user interfaces and service delivery processes
- Optimize customer journeys based on actual behavior data
- Enhance customer support by proactively addressing common issues
Real-world example: A credit union can use first-party data to identify where applicants abandon their personal loan applications while maintaining compliance with financial data privacy regulations. By analyzing which steps see the highest drop-off rates and which help center articles customers access most, they might discover that document upload requirements cause confusion. This insight allows them to redesign the process with clearer instructions, add examples of accepted file formats, and implement real-time validation – removing friction and improving completion rates.
7. Improved user experience
Utilize first-party data to elevate your website or app user experience.
UX improvements include:
- Personalizing website content based on past behavior
- Offering customized recommendations for products and services
- Streamlining the customer journey by removing friction points
- Enhancing navigation based on common user paths
- Improving customer support with comprehensive history and preference data
The insights from first-party data make interactions more relevant and improve user navigation. Customer support teams can provide more personalized and efficient service by accessing detailed customer histories.
Integrating first-party data into your strategy creates a user-centric digital environment that fosters satisfaction, engagement, and long-term loyalty.
Real-world example: A healthcare system uses first-party data to improve its patient portal experience while maintaining HIPAA compliance. By analyzing how patients navigate their portal, they discovered that a significant number of users struggled to find prescription refill options, often abandoning the task. Based on these insights, they redesigned the portal to feature a prominent “Quick Actions” menu with one-click access to prescription refills, appointment scheduling, and test results.
8. Increase user acquisition
Make user acquisition strategies more precise and impactful by studying existing customer characteristics.
Acquisition strategies:
- Identify characteristics of your most valuable customers
- Create targeted campaigns to attract similar audiences
- Increase efficiency by reaching individuals who share key traits with your established customer base
- Refine and optimize user acquisition for greater precision
Real-world example: An insurance company can track anonymous visitor behavior on its website to identify high-intent prospects. When someone visits the page with auto insurance quotes, spends significant time comparing coverage options, and uses the premium calculator, the system recognizes this as strong purchase intent. The company can present these visitors with a personalized offer – such as a limited-time discount for completing a quote within 24 hours or a free consultation with an insurance advisor.
9. A/B testing
Conduct meaningful experiments using first-party data insights.
This data-driven approach enables informed decision-making, helping identify which elements drive enhanced engagement and conversion rates.
By incorporating first-party data into A/B testing, you can iteratively tailor offerings and messaging to better align with the preferences and behaviors of your diverse customer base.
First-party data marketing and privacy: What’s next?
The intersection of first-party data marketing and privacy is evolving rapidly, shaped by technological advancements, regulatory changes, and shifting consumer expectations.
Strengthening privacy regulations
Privacy laws worldwide keep getting stricter, giving people greater control over their data and placing greater responsibility on businesses to handle it properly.
What’s happening in Europe
In November 2025, the European Commission presented a proposal for the Digital Omnibus package to simplify EU digital rules and reduce consent fatigue. The big change? You might be able to run basic analytics without cookie banners – but only if you meet specific conditions.
If your analytics data stays exclusively with you (it’s not shared with third parties or used for marketing), you could track basic data like page views and navigation patterns without asking for consent.
Learn more: First-party analytics without consent: Your Digital Omnibus compliance guide
The data sovereignty challenge
Storing data in EU data centers doesn’t automatically mean you have data sovereignty. Under the U.S. CLOUD Act, American authorities can legally demand customer data from U.S.-based companies, no matter where that data is physically stored.
The current EU-U.S. Data Privacy Framework faces the same legal challenges that brought down Safe Harbor and Privacy Shield. For healthcare, finance, education, and government organizations, this creates real compliance risks.
True data sovereignty means both your data and the company handling it remain under EU jurisdiction – free from foreign ownership or legal obligations to other governments.
Read more: EU hosting vs. EU sovereignty: Why the difference matters for privacy-first analytics
Experts opinion
Simon Westphall Pansch
“GDPR is here to stay, and marketing’s new frontier is in first-party data. Even if we ignore legal risks when we advise our clients on data solutions, we must still consider business risks – and not owning data or not using platforms that guarantee access to historical data is an unacceptable risk. No data-driven business strategy can succeed with constant data resets.”
Healthcare under pressure: Recent HIPAA enforcement
Healthcare organizations face particularly high stakes. In 2023-2025, the Office for Civil Rights (OCR) issued several major penalties for violations related to marketing and analytics. The message is clear: healthcare organizations need analytics and marketing solutions designed for regulated environments from the ground up, not general-purpose tools with compliance settings bolted on.
Learn more: HIPAA-compliant analytics: Your complete vendor comparison and selection guide
What this means for you
Before the Digital Omnibus becomes law and data transfer frameworks potentially change again, evaluate your analytics setup:
- Does your provider have genuine EU data sovereignty, or just EU hosting?
- Can you operate without consent under the new rules?
- If you’re in healthcare, finance, or another regulated sector, does your analytics setup expose you to unnecessary legal risk?
Rising consumer privacy awareness
Consumers are gaining higher awareness of data privacy issues, spurred by high-profile breaches, scandals, and increased media coverage.
Customers are more interested in how their data is collected, used, and shared. They favor businesses that are transparent about their data practices and offer options to maintain control over personal information.
According to Cisco’s research, 80% of organizations report increased customer loyalty and trust as a result of their investments in data privacy, with the average company receiving $2.70 in benefits for every dollar spent on privacy initiatives.
Data anonymization methods
Businesses are exploring methods to de-identify or anonymize data while still gaining valuable insights:
- Pseudonymization: Replacing identifying data with pseudonyms or tokens
- Identifier deletion: Removing direct and indirect identifiers
- Data masking: Replacing data with fictitious information
- Data aggregation: Presenting data as aggregated values with no individual attributes (the only truly irreversible method)
Analytics platforms that offer anonymous data collection, such as Piwik PRO, provide a viable path to processing user data instead of an all-or-none choice based on consent.
The core benefits of anonymous data include:
- You are not dealing with personal data because there is no visitor identification.
- You are not using the collected visitor data for other purposes (for instance, Google uses the data for advertising and to improve its services).
- You are not transferring data outside the EU or other privacy jurisdictions.
With anonymous analytics, businesses can gain valuable insights into user behavior, preferences, and pain points while respecting user privacy and complying with data protection regulations.
Learn more: How to do useful analytics without personal data
Advanced consent management
Companies are investing in more sophisticated consent management systems to obtain and manage user consent for data collection and processing. This includes providing users with granular options for what data they’re comfortable sharing.
The bottom line: The privacy landscape is dynamic, and businesses must continuously adapt to changes in regulations, technology, and consumer expectations. Staying informed and proactive in addressing privacy concerns is crucial for long-term success.
SUCCESS STORY
From data gaps to full visibility
See how Rawlplug went from attributing just 30% of their online transactions to nearly 100% – and what that clarity changed for their marketing, sales, and product teams.
Taking your first-party data strategy to the next level
First-party data marketing offers a privacy-conscious and consumer-centric approach to creating more targeted strategies that contribute to overall growth and success.
Businesses prioritizing transparency, user control, and ethical data practices will navigate this evolving landscape most successfully.
Piwik PRO Analytics Suite is a flexible analytics platform that helps you easily collect valuable first-party data about your customers in a privacy-friendly way.
With the gathered information, you can better understand how people interact with your company and use those insights to improve conversions while maintaining full compliance with privacy regulations.
Our platform includes:
- Analytics Suite – Privacy-first web analytics
- Data Activation – Unified customer profiles and audience management
- Tag Manager – Easy implementation of tracking tags
- Consent Manager – GDPR and CCPA compliant consent collection
FAQ: Common questions about first-party data
Why is first-party data more valuable than third-party data?
First-party data comes directly from your customers through interactions with your owned channels, making it more accurate and relevant to your business. You know exactly how it was collected, have proper consent, and it reflects actual customer behavior with your brand. Third-party data is aggregated from external sources, may lack proper consent, and doesn’t reflect direct relationships with your business.
Is first-party data GDPR compliant?
First-party data collection can be GDPR compliant when done correctly. You must obtain explicit consent before collecting personal data, provide clear information about how you’ll use it, allow users to access and delete their data, and implement proper security measures. The key is collecting data transparently with user consent – the fact that it’s first-party data doesn’t automatically make it compliant. Read our complete guide to GDPR compliance.
How long should you store first-party data?
You should only store first-party data for as long as necessary to fulfill the purposes for which it was collected. GDPR requires you to define retention periods and delete data when it’s no longer needed. Typical retention periods range from 2-7 years, depending on your industry, business needs, and regulatory requirements. Always document your data retention policies and regularly review stored data.
Can first-party data be shared with third parties?
Yes, but only with explicit user consent and proper disclosure. When you collect first-party data, your privacy policy should clearly state if you’ll share it with third parties and for what purposes. Users must consent to this sharing. If you share first-party data with partners, it becomes their second-party data, and you’re responsible for ensuring they handle it appropriately.
What’s the difference between first-party and zero-party data?
First-party data is information you observe and collect from customer behavior and interactions (website visits, purchases, email opens). Zero-party data is information customers intentionally and proactively share with you (preference center selections, survey responses, quiz answers). Zero-party data is often more valuable because it reflects explicit customer intent rather than inferred interests.
How much first-party data do I need to start seeing results?
You can start seeing results with even small amounts of high-quality first-party data. For basic personalization and segmentation, a few hundred engaged users can provide meaningful insights. For advanced tactics like predictive analytics and sophisticated segmentation, you’ll typically need data from thousands of users over several months. Focus on data quality and relevance over volume.
What happens to first-party data if a customer deletes their account?
When a customer deletes their account or requests data deletion under GDPR’s “right to be forgotten,” you must delete their personal data within a reasonable timeframe (typically 30 days). You can retain anonymized or aggregated data that can’t be linked back to the individual. Document your deletion processes and keep records of deletion requests for compliance purposes.
