--- description: Capterra interviewed 1036 Australians for insight into their shopping behaviours so companies can optimise a first-party data strategy. image: https://gdm-localsites-assets-gfprod.imgix.net/images/capterra/og_logo-e5a8c001ed0bd1bb922639230fcea71a.png?auto=format%2Cenhance%2Ccompress title: Consumer behaviour insights for a first-party data strategy --- # Consumer research to help leverage your first-party data strategy Canonical: https://www.capterra.com.au/blog/3191/consumer-analysis-for-first-party-data-strategy Published on 01/11/2022 | Written by Laura Burgess. ![Consumer research to help leverage your first-party data strategy](https://images.ctfassets.net/63bmaubptoky/J1pJ9BtJEq5diPuO33lsckiM2h9eRpyZQaR2NwFdcbg/af19854f055fabefdf03f5aea4c50199/first-party-data-CAP-AU-header.png) > First-party data can provide insights into consumer behaviour and help companies improve the customer experience. But what are consumer preferences when it comes to sharing this valuable information? Read our survey results to find out.  ----- ## Article Content First-party data can provide insights into consumer behaviour and help companies improve the customer experience. But what are consumer preferences when it comes to sharing this valuable information? Read our survey results to find out. In this articleDefinition of first-party dataConsumer awareness of their data privacyUnderstanding consumer online behaviourWhy consumers share personal data with online companiesThe data collection methods consumers preferImportance of a first-party data strategyMarketers may have once relied heavily on third-party data to understand the demands of their audience. But with third-party cookies nearing extinction, companies will now need to depend primarily on their own first-party data strategy as a key component for customer engagement. This is necessary for strengthening relationships with consumers for a valuable exchange of personal information. What makes consumers more or less likely to engage with a company’s first-party data strategy? Capterra interviewed over 1,000 Australians who shop online at least once a month to find out. We look at consumer attitudes towards data privacy and how they feel about the data collection methods companies use. The full methodology is available at the end of this article. Definition of first-party dataFirst-party data is information collected directly by an organisation from interactions made by visitors to their websites, social media profiles, or applications. First-party data can be gathered using web analytics platforms, such as Google Analytics or Microsoft Clarity.First-party data can include:Demographics Consumer interestsPurchase historyWebsite visits Content engagement Location Zero-party data is volunteered information that comes directly from the consumer, often via customer surveys, whereas first-party data comes from the company’s own sources. Second-party data usually comes from first-party data acquired from another business that has collected it from its own customers. Third-party data is information aggregated from several different places by external companies, which is not necessarily related to the brand. Outside sources provide this information so companies can make well-informed marketing strategies, such as creating targeted online adverts via third-party cookies.The death of third-party dataThird-party cookies can track user behaviour across a huge number of websites, and the information (e.g., consumer product preferences and search history) can be used to target customers with content tailored to their interests. The use of third-party cookies, however, has been viewed as a privacy issue in recent years. Third-party data is also unreliable as it’s usually scraped from other sources on the web and may not be precise or up-to-date.This has led to Google working on phasing out cookies in Chrome by 2024 and creating a privacy sandbox as a replacement. Apple has eliminated cookies from Safari, and Mozilla’s Firefox started to block them in 2019.Whilst the end of third-party cookies may leave marketers concerned about tracking and accessing customer data, it does present an opportunity to implement a first-party data strategy instead. First-party data should not be underestimated as it is a powerful tool that can help marketers speak directly to the customer.Consumer awareness of their data privacyCollecting first-party data requires building trust with customers. Capterra found that 93% of consumers would stop doing business with a company that does not value the privacy of their personal information. Consumers may have an awareness that companies collect their data when they take online actions, such as creating a new user account or liking a social media post, but perhaps remain oblivious as to how their data is used. But consumers undoubtedly want to trust that businesses will use their data responsibly. Companies should not only see their customers as people who buy products but as people who can provide valuable data. One way for small to medium-sized businesses to reassure consumers is through transparency, ensuring customers know why they are being asked to share their personal details and how the information will be used. Aside from making it clear why they are collecting data, companies should explain the data privacy rights to the consumer and also highlight the benefits of sharing personal information. The customer’s interests can be tailored to make their customer journey more personalised, for example, which can improve the user’s shopping experience.How to reassure consumers their personal data is secureReassuring customers their data privacy is protected is an important part of building trust. The following strategies can help:Provide written information about security: Outline which companies the organisation works with to help ensure compliance and security, displaying any security certificates. Publish the company’s data privacy policy: Highlight the OAIC guidelines and inform consumers they can control what data is collected via cookies, including opting out of any targeted advertising or correcting any information. Show processes are in place to address risk: Demonstrate that there are procedures ready to react to any potential risks. Data loss prevention tools can secure sensitive details by identifying and preventing possible data breaches.Understanding consumer online behaviour To create a digital first-party data strategy, it is important for SMEs to consider how their customers behave online and to understand the user experience. Looking at consumer buying patterns and preferences can help identify the needs and wants of potential and existing consumers. It can also help marketers prioritise their time and investment on the most engaging content or successful marketing campaigns.Capterra’s survey found that:The majority of survey-takers (61%) use their mobile phone the most for online shopping, followed by a quarter (25%) who use their laptop and 9% their desktop. Aside from visiting a brand’s website, 62% of consumers prefer to interact with an online company via email, followed by social media (35%) and a mobile app (33%). WhatsApp (6%) was the least popular form of interaction. When signing up for a new account with an online organisation, 37% of survey-takers prefer to log in using an existing email address. 29% prefer to sign up for a new user account (with a new username and password), and 19% prefer to log in using mobile device identification (e.g., mobile number). Most consumers use their smartphones when shopping online, perhaps thanks to the convenience of mobile commerce. But it is important that eCommerce websites are optimised for mobile use and consider factors such as site loading, clickability, ease of registering a new account, the checkout process, and how well the site integrates with other applications. User testing tools enable companies to research what customers think about the website or application and provide insights into areas that may not work as efficiently or run as smoothly. User experience data can help marketers make informed decisions in finding solutions that bring real value to the customer journey. When signing up to a new online account, consumers will provide their email address, which is a valuable asset to companies as it’s a direct way to contact potential customers about a product or service. Email marketing can help an organisation move away from third-party data and to collect consumer information directly. Email campaigns allow marketers to listen to customers and gain actionable insights. If marketers focus on email strategies, they can use first-party data that is raw and hasn’t been filtered by any third parties. These data points can then be used to build future campaigns.Why consumers share personal data with online companiesCustomers want to be rewarded for sharing their personal details. Incentives are a popular way to encourage consumers to provide their age, income, gender, etc., in exchange for a more personalised shopping experience. Loyalty programs are a good example of a model that can drive a direct customer relationship. Capterra’s survey found that ‘discounts and vouchers’ (62%) are the most popular incentives for consumers to volunteer their demographic information, followed by ‘product offers’ (54%) and ‘personalised content recommendations’ (35%), as seen on platforms such as Netflix. It is worth noting that a separate 12% of consumers said they would not be interested in providing any demographic details for any reason. ‘Receiving vouchers’ also proved to be popular with consumers (64%) when asked the reasons they would be willing to give their name, occupation, and email address. This was followed by ‘registering a new user account’ (53%) and ‘entering competitions’ (53%).Rewards and incentives can further leverage a marketing loyalty program. Actions such as completing a profile registration or downloading an application can be incentivised with a discount code or a points reward system, motivating customers to share their data. But how can companies handle all of the consumer data they collect? Data management platforms (DMPs) can act as a central hub for first-party data when it comes to storing and analysing consumer information. DMPs can analyse customer data across multiple channels to enhance audience engagement, marketing campaigns, and content customisation. The data collection methods consumers preferCapterra provided a list of methods companies use to collect customer data to find out what appeals the most to consumers. ‘Surveys’ were the most popular choice for 35% of survey-takers compared to quizzes (7%), which was the least favourite method of engagement with a brand. When designing surveys to collect zero or first-party data, survey software can help SMEs create or customise forms that gather information on potential customers. The data can then be used to create an audience demographic. Feedback forms and reviews can also help increase customer retention and loyalty. Importance of a first-party data strategy First-party data is highly valuable information for retailers because it comes directly from the customer, making it more reliable than a third-party source. First-party data can help marketers create personalised experiences by displaying adverts relevant to customers’ needs. Zero-party data is also valuable for marketers as it’s willingly provided by consumers and can be used to help improve the shopping experience. The main advantage of a first-party data strategy is building trust with customers. The strategy should consider all possible points of contact and types of customer data that can be collected.A strong strategy can deliver accurate insights that enable marketers to be more innovative in the ways that they connect with customers. This can improve the user experience and can be useful in creating an overall positive customer journey. In the next article in this two-part series, Capterra looks at whether consumers want more control of their data, the personal information they rate the most sensitive to share, and if they take any measures to protect their own data privacy. Looking for data management software? Check out our catalogue. ## Disclaimer > MethodologyData for Capterra’s First-Party Data survey was collected in September 2022. Results comprise responses from 1036 Australian participants. The criteria to be selected for this study are as follows:Australian residentBetween 18 and 65 years of ageShops online at least once a month ## About the author ### Laura Burgess Laura is a Content Analyst at Capterra, researching and giving insight on tech trends to help SMEs. 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