The world is moving towards a cookie-less future. With this shift comes the need to prioritize first-party data collection to deepen fan relationships and create unique experiences. But you may wonder why making this shift is essential to your brand.
Here are six reasons why:
1. Your fans are not cookies
The most important reason first-party data is essential is that it doesn’t rely on third-party cookies. As third-party cookies are being phased out by 2024, it’s more important than ever to get on board with collecting data that your fans have consented to provide. Also, there’s no guarantee of how accurate the data is when collected from third-party sources; first-party data is the most accurate roadmap of your fans.
2. Higher return on investment
Did you know that first-party data can produce a higher return on investment and dramatically reduce business expenses? A Google and Boston Consulting Group study found that businesses that used first-party data for marketing achieved up to a 2.9x revenue lift and a 1.5x increase in cost savings. In fact, existing customers are likely to spend 67% more than new customers.
Technically, first-party data is free (yes, there are associated costs), but with third-party data, you will have to pay a pretty penny to obtain data that isn’t as reliable or accurate. Because third-party data is sold in 1,000 user blocks, ranging from a few dollars to much more per block, the prices will add up quickly if you need hundreds of data blocks.
3. Improves trust and boosts loyalty while complying with regulations
In the latest State of Consumer Trust report, researchers found that levels of distrust are high and Gen Z and Millennials hold brands to a higher standard. If you are committed to providing a better experience for fans, you will need to follow data privacy best practices. It improves the trust fans have in your brand and makes compliance easier as the rules become stricter.
Even though fans want that personalized experience, they’re becoming more suspicious of how brands use their data. By using first-party data with clear language about how their data will be used to improve their experience, fans understand why you need their data, giving explicit consent to you to collect their information.
4. Deeper fan insights that help future-proof your career
Deepening artist-to-fan relationships depends on the data you have at your fingertips.Thanks to ad blockers, major ISPs like Apple and Google phasing out cookie support and ad platforms reluctance to share individual insights, data provided via third parties almost never paints a full picture. First-party data will provide you with a complete 360 view of your fans, including past-purchase history and more. You no longer have to infer wants and needs, as your data provides you with all the insights you need to create the most impactful experiences for your fans!
5. It’s your data
Depending on the platform, third-party data can be available for anyone to purchase. It isn’t going to be unique to you. First-party data, however, is and is independent of other data providers.
6. Personalizes the fan experience
The detail you can glean from data you directly collect can unlock your fan’s desires and needs at a granular level. For instance, if you would like to target fans who are 35+ years old, own a home, attended your concert in 2019 in the Bay Area, and have purchased merchandise in the last ten years with an offer for a merch and ticket bundle for your upcoming show in San Francisco–you can do that.
With privacy laws enacted by the likes of the GDPR and CCPA and growing privacy concerns, the days of third-party data are numbered. That is why it’s the perfect time to reset and focus on first-party data for the long-term wins that drive conversions and delight fans. If you’re ready to make the shift, reach out, and a member of our Artist Relations team will be happy to jump on a call and discuss how we can help you get the most out of your first-party data in greater detail.