First-party data: Definition, examples, and use cases

What is first-party data?

Examples of first-party data

Companies collect different types of first-party data directly from their customers. For example:

• Demographic information includes details like gender, age, marital status, employment, and income level. Businesses often collect this data through sign-up forms or customer profiles. A clothing store might ask for a customer’s birthdate at checkout and later send a special discount on their birthday.
• Location data helps businesses understand where users live or work and where a business is located. Companies use this information to provide location-based services and personalized promotions. For example, a food delivery app uses a customer’s address to display nearby restaurants and suggest popular dishes available in their area.
• Interests and preferences refer to a customer’s favorite products, preferred communication channels, and content choices. Companies gather this information through website activity, surveys, or purchase history. A streaming service might track the movies and TV shows a user watches and suggest similar content they might enjoy.
• Purchase history includes past purchases, subscriptions, bundles, cross-sells, upsells, and total spending. This data helps businesses tailor offers and rewards to loyal customers. For example, a coffee shop app could record how many drinks a customer buys each month and offer a free coffee after ten purchases.
• Social media interactions track the platforms customers use and how they engage with a company’s content. Businesses analyze this data to create more engaging marketing campaigns. A skincare brand might notice that many customers engage with their Instagram posts about eco-friendly packaging and create more content about sustainability to attract similar customers.
• Loyalty programs and membership status provide data on reward points, membership tiers, and VIP benefits. Companies use this data to encourage repeat purchases and customer retention. An airline could track a passenger’s miles and upgrade frequent travelers to a higher membership tier with perks like priority boarding.
• Coupon and discount usage helps businesses understand how often customers use promo codes and which discounts they prefer. Companies analyze this data to offer more personalized promotions. For example, a grocery store app might record which digital coupons a customer redeems most often and send them similar offers for their next shopping trip. 
• Customer support interactions include chat history, past issues, and product returns. Businesses use this data to improve service and provide faster, more personalized assistance. For example, a tech company could log past troubleshooting chats with a user and offer personalized solutions when they contact support again.
• Website behavior provides insights into which pages a user visits, how long they stay, and what they click on. This data helps businesses optimize their websites and marketing strategies. For example, a travel booking site might notice a user repeatedly checking flights to Paris and send them a limited-time discount on airfare.

How companies use first-party data

First-party data allows companies to make their marketing strategies more effective and boost sales performance. Some of the most common ways companies use first-party data include:

• Building customer profiles. Audience insights gained through first-party data help companies build more accurate customer profiles. The more reliable information these profiles contain, the better their understanding of their online customers. Companies can make better purchasing predictions when they know how a particular profile customer might act.
• Creating personalized customer experiences. First-party data helps businesses personalize their products, services, and customer communication. For example, companies may tailor their website, email, and SMS content based on customers’ interests, demographics, and location. They may also decide when to communicate with particular customers and what offers to show to spark their interest.
• Improving customer segmentation. Companies group users based on their information so they can identify the most valuable groups and target them more effectively. Using first-party data, companies create accurate segmentations of existing and new customers.
• Customer journey mapping. Companies need to know how their customers move through the different stages of their buying process. First-party data provides companies with the necessary puzzle pieces to map their customer journey and improve conversion rates at each step.
• A/B testing. Marketers use A/B testing to compare different versions of ads, emails, landing pages, and other content. First-party data helps businesses test what works best by analyzing user interactions and measuring performance. This analysis allows companies to refine their messaging, optimize their calls to action, and improve engagement.
• Product and service optimization. Understanding how customers interact with a product or service helps companies improve it. First-party data reveals usage patterns, customer pain points, and preferences. Businesses use these insights to make adjustments, improve the user experience, and introduce features that meet real customer needs.
• Cross- and upselling. Companies use first-party data to identify opportunities for cross-selling and upselling. By analyzing purchase history and customer behavior, businesses can recommend relevant products, offer bundle deals, or suggest premium upgrades.
• Optimizing ad and email marketing campaigns. Successful marketing campaigns rely on reaching the right audience at the right time. First-party data helps companies fine-tune their ads and emails by identifying the best-performing channels, refining targeting strategies, and personalizing messaging. 

How do companies collect first-party data?

Since first-party data comes directly from customers, companies collect it through data channels they own. The four main data sources are:

1. 1.Website or mobile app activity. Most companies have website and app analytics, which provide reliable and continuous data about customer activity. The information tracked includes time spent on the website or app, products purchased (or left in shopping carts), browsing patterns, and interactions with cookies and other tracking technologies that store user preferences.
2. 2.Emails and SMS. Email and SMS marketing are key sources of first-party data. Every email a business sends allows it to track how customers interact with it. Companies can track whether a potential customer opened an email, clicked on an offer, or completed a purchase.
3. 3.Social media. Companies may also collect information about their customers on social media platforms. User comments, likes, follows, and messages can provide valuable insight.
4. 4.POS systems. If a company also offers in-store services, the point-of-sale system (POS) can provide useful information on purchasing history. For example, companies may track product sales, customer spending, loyalty program effectiveness, and membership statuses.

Companies can also collect first-party data from lead generation campaigns, customer feedback and satisfaction surveys, sales or customer service conversations, and live chats. Additionally, trackers embedded in digital ads and websites can help businesses analyze user behavior and refine their targeting strategies.

First-party data vs. other types of data

Comparing data types is somewhat similar to comparing data sources — first-party data is often more reliable and relevant than third-party or second-party data. Let’s explore in more detail how first-party data compares to other data types.

First-party data vs. zero-party data

Zero-party data is information customers and internet users voluntarily share with website providers and companies. It comes directly from customers who willingly share their information, while first-party data is collected through user interactions with a company's website, app, or emails. 

For example, zero-party data includes answers from surveys, preference selections, or quiz responses, where customers openly tell businesses what they like. First-party data, on the other hand, comes from behavioral tracking — such as purchase history, website visits, and email engagement.

First-party data vs. second-party data

First-party data comes directly from a company’s customers, while second-party data is obtained from a trusted partner. While first-party data is exclusive to the company collecting it, second-party data is simply another company’s first-party data that businesses purchase to reach a broader audience.

For example, an airline gathers data from its passengers, including flight history and preferences. It can use this first-party data in advertising to deliver personalized promotions to past travelers. A hotel chain, however, would need to rely on second-party data from an airline partner to effectively target the same audience.

First-party data vs. third-party data

First-party data is collected directly from customers who interact with a company, while third-party data comes from outside sources that gather and sell it. Businesses that purchase third-party data gain broad audience insights but lack a direct relationship with the consumers.

For example, a retailer might use its own first-party data to personalize offers for loyal customers, while another retailer may purchase third-party data to target potential customers based on general online behavior. First-party data is more reliable and relevant because it comes directly from actual customers, whereas third-party data can be outdated or less precise.

Benefits of using first-party data

First-party data offers businesses a competitive edge by providing accurate, reliable, and fully controlled insights. Unlike second- or third-party data, which comes from external sources, first-party data is collected directly from customers. Because it's collected firsthand, it’s more accurate and relevant.

Since companies own and control their first-party data, they don’t have to rely on outside providers or worry about outdated or incomplete information. This control enables them to build precise customer profiles, improve segmentation, and personalize marketing with confidence. A well-planned first-party data strategy helps businesses maximize the value of their data while ensuring compliance with regulations and upholding strong data privacy standards.

With better insights, businesses can refine their digital marketing, predict customer behavior more effectively, and optimize the customer journey. By leveraging first-party data in marketing, companies can increase engagement, boost conversions, and drive long-term customer loyalty — without paying for third-party data.

Is first-party data good for customers?

While first-party data benefits companies, its impact on customers depends on how businesses handle privacy and transparency. Many users don’t realize how much data companies collect. This lack of awareness raises concerns about digital privacy and tracking.

Compared to third-party data, first-party data is generally better for privacy since companies collect it directly rather than buying it from unknown sources. Collecting data directly from users gives businesses control over their data collection methods, which reduces the risks of inaccuracies or unethical sourcing. However, transparency is key — users should be informed about what data the company collects, how long it will store it (data retention), and have the option to opt out.

Ultimately, customers should have control over their personal information. Companies must respect user preferences, provide clear opt-out options, and ensure data is collected responsibly. When handled ethically and in compliance with the GDPR and other privacy regulations, first-party data can improve user experiences through personalization without compromising privacy.

The future of first-party data collection

As privacy regulations tighten and third-party data becomes less reliable, businesses will need to refine how they collect and use first-party data. In the future, we should expect companies to provide:

• Better data quality and management. Companies will invest in tools to keep first-party data accurate, complete, and well-organized.
• Seamless data integration. Businesses will combine data from websites, apps, emails, and other sources into a single, unified customer profile.
• AI-driven data collection. AI will automate data gathering, spot trends, and predict customer behavior.
• Real-time data insights. Companies will use mobile apps, internet of things (IoT) devices, and other tools to collect and analyze data instantly.
• Stronger privacy controls. Businesses will build better systems for managing customer consent and privacy preferences.