Differences Between First-Party Data & Earned Data

As marketers, we understand the importance of useful, actionable consumer data (such as consumer behavior, social media activity, online purchases, and preferences). It allows you to connect with consumers most effectively, driving behavior and engendering trust.

As data usage in marketing increases, so does consumer awareness of how valuable their data is. Consumers today understand the risks of their data falling into unintended hands and can be intolerant toward brands that misuse their data when trying to make a sale. When consumers intentionally share personal information with your brand, you are gifted the opportunity to create a tailored experience, which will provide the most appropriate, engaging, and rewarding journey for your consumers.

FIRST-PARTY DATA

First-party data is information collected about your consumers directly by your brand. It includes data derived from consumer behaviors, such as transaction history, app activity, website activity, and data in your CRM platform. Because it is gathered via interactions with consumers, first-party data helps create targeted messaging within your marketing campaigns.

Using first-party data collection tools, such as surveys, allows your brand to gather consumer preference insights. However, being equipped with those insights does not guarantee a brand can create a truly personalized marketing experience. Marketing teams often have to make assumptions about consumer interests and preferences based on the available data.

EARNED DATA

Earned data is information consumers intentionally share with brands. Earned data can be first-party data, but it also includes preference center data, purchase intent, and personal context—data points marketers could never genuinely know from first-party data alone. An essential component of earned data is the relationship between brand and consumer and the communicated intent of how consumer data will be used. Consumers decide to provide this valuable data when they trust your brand is using their data with their interests in mind. Consumers who share this data perceive there to be an exchange of value with your brand, their data traded for relevant and meaningful content.

Marketers use earned data to gain a deeper understanding of consumer interests, allowing for more targeted and relevant communications. It also creates a give and take with the consumer, where they are entirely aware of what information they are giving you. However, if your brand does not deliver value with each communication or communication begins to feel intrusive or inappropriate, you run the risk of consumers withdrawing consent for their data to be used.

FINAL THOUGHTS

Earned data may be the most difficult to obtain, but it provides the greatest value to your brand. Creating trusting relationships with your consumers and fostering an open communication environment will allow you to connect with consumers in ways that encourage them to share this valuable data with you. The more you know about your consumers on a personal level, the better and more relevant your communications with them can be.