First-Party Data: The Key to a Futureproof Marketing Strategy

If you watch TV, you’ve likely seen the ads from Apple focused on privacy. Even if you haven’t, you could be a part of the 58.42% market share Apple has on the smartphone market in Australia – even higher overseas! – in which case you’ve likely experienced a popup on your phone asking if you’d like your app to not track you.

(Samsung and Google probably do similar things these days too, but I’m too locked into the Apple ecosystem to know for sure.)

Privacy has been the buzz word of the digital world for years now. Throw in policies like GDPR and California’s CPRA (also known as Proposition 24), and the way we think about – and execute – digital marketing has fundamentally changed.

Or has it?

The evolution of Google’s stance on third-party cookies

In 2021, Google announced plans to phase out third-party cookies from Chrome by the end of 2023. This was pushed back to 2024 – with new tracking technology to replace them. Chrome then started restricting third-party cookies for 1% of users in early 2024… only to pull the plug on the plan entirely by July.

Now, Google is offering users more choice regarding cookies. Apple has done something similar with Safari, but with one key difference: Safari blocks third-party cookies by default, while in Chrome it’s the opposite.

Call me a cynic, but my guess is this is simply because Apple doesn’t rely on ad revenue the same way Google does. Gotta keep those advertisers happy.

How are cookies used?

Browsers can use various types of cookies, although first-party and third-party are the most prevalent. A cookie stores a small amount of data on your computer, like the site you visited, any login info captured, and the pages you viewed. A first-party cookie only collects data from the source website. For example, Google Analytics provides insights into user behaviour on the site associated with the Analytics account, such as page views, session length and traffic sources.

What Google Analytics won’t tell you is what users are doing across other websites, like on Facebook or a competitor’s website as they compare purchase options. That’s information you’d get from third-party cookies, such as Facebook Pixel. 

This is where the privacy concerns come in. Facebook Pixel and other third party cookies let one site access data about you from entirely unrelated websites. It’s great for targeted ads, but a little spooky – no wonder we all think our phones are spying on us.

The (postponed) ‘death’ of the cookie

When Google originally announced its plan to end third-party cookies, marketers worried about losing key data. But the end of third-party cookies doesn’t mean losing options; it just requires a strategy adjustment.

While the third-party cookies don’t appear to be going anywhere anytime soon, it makes sense to prepare by adopting privacy-focused alternatives. Not only does this futureproof your strategy, it also offers a better customer experience – whether users are concerned about privacy or not.

For one, relying less on third-party data reduces errors. Working in an agency has me visiting a wide range of websites, so I often end up with a wildly inaccurate ad profile. I’m sure this happens in other industries too.

First-party cookies vs first-party data: what’s the difference?

Before diving deeper, let’s take a moment to clarify the difference between first-party cookies and first-party data. While both are essential for understanding user behaviour, they serve different roles.

First-party cookies

Definition: Small pieces of data stored on a user’s browser. 

Purpose: Helps a website remember login details, preferences, and session data, creating a more seamless, personalised experience.

Usage: Keeps users logged in, saves shopping cart items and tracks interactions.

Data collection: Only accessible by the website that set the cookie, making it more private compared to third-party cookies shared across sites.

First-party data

Definition: Data collected directly by a business from its customers, such as through websites, apps, or emails.

Purpose: Offers insights into customer behaviour, preferences, and demographics, enabling personalised marketing and segmentation.

Usage: Includes CRM data, purchase history, and feedback. It’s valuable for targeted marketing and customer profiles.

Data collection: Considered more accurate and privacy-compliant, as it’s usually gathered with user consent.

Key differences

Scope: FFirst-party cookies are session-specific to a website, while first-party data covers various touchpoints. Think Coke (first-party cookie) vs. soft drinks (first-party data).

Usage focus: Cookies enhance user experience on a site, while first-party data drives customer insights and strategy.

Control and access: Cookies live in a browser, while first-party data resides in a company’s systems, like a CRM, for analysis and strategy.

In short, first-party cookies are a type of first-party data, but first-party data includes a broader set of information gathered across all owned channels.

Why first-party data is the best alternative to third-party cookies

Now we’ve explained what first-party data is – and how cookies fit in – let’s explore why it’s the superior alternative.

An enhanced CRM

First-party data offers a 360-degree view of your customers. By capturing purchase history, email engagement, and site interactions, companies can build detailed profiles. This data can be used in a CRM to segment audiences, customise follow-ups, and scale customer relationships.

Personalised email marketing

Email marketing powered by first-party data fosters stronger connections. With insights into preferences, you can tailor messaging to specific segments, boosting open and click-through rates. Knowing past purchases or browsing behaviour lets you recommend products and increase conversion likelihood.

Marketing automation and predictive analytics

Integrating first-party data into automation platforms allows for personalised workflows in real time. Predictive analytics can forecast customer needs and buying patterns, enabling timely, relevant communications that reduce churn and improve customer lifetime value.

Using first-party data to enhance customer experience

At Flowsense, we focus on how first-party data enriches the customer experience:

Greater trust and transparency

Collecting data directly builds trust. When customers feel control over their data, they’re more likely to engage and share valuable insights.

A seamless, personalised journey

With first-party data, you can offer unified, personalised experiences. For example, if a customer shows interest through email, that info can tailor website content when they visit.

Improved customer retention

Personalised experiences built on first-party data make customers feel valued, strengthening brand loyalty and encouraging repeat business.

The dark-side of first-party data. Use your power wisely.

While first-party data is ‘owned’ by the business, it’s still your customer’s private information. Use it responsibly. 

For context, I once had an experience with a SaaS company whose name I won’t disclose. I was logged into my account and visiting a page on their website. While still on the page, a sales rep called me to tell me they could see I was browsing the specific page and could they help me further?

Ick. Serve me a third-party ad any data over that experience.

Futureproof your strategy with first-party data

The shift to first-party data presents a valuable opportunity. By prioritising customer relationships, personalisation, and privacy, businesses can adapt to digital changes and drive better ROI.

Sure, third-party cookies aren’t gone yet—and when they are, similar tech will likely follow (a rose by any other name…). But with the right tools, first-party data can be your most powerful asset for delivering meaningful customer experiences and fostering growth.

At Flowsense, we specialise in CRM setup, email marketing, and automation solutions to help businesses maximise the value of their first-party data. By focusing on customer experience, we help your brand stay connected, relevant, and impactful in an evolving digital landscape.