Different methods of first-party data collection

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Based on Forrester Consulting's 2024 research findings, incorporating first-party customer behavior data into marketing strategies positively impacts customer acquisition costs by 83%, customer satisfaction by 78%, brand awareness by 75%, conversion by 73%, and return on investment by 72%.
A Gartner survey revealed that by 2023, nearly 60% of market leaders believed that collecting first-party data while balancing customer value and privacy would be more challenging. However, more than 50% of market leaders surveyed who strongly favored first-party data reported better customer retention results.

According to eMarketer, the recent launch of PayPal Ads, a new advertising platform, would leverage its first-party ios database data from more than 400 million PayPal users , plus 90 million Venmo users and millions of Honey users. The payments giant will also gain access to its 225 billion transaction data across millions of merchants.

As data compiled by eMarketer, the Advertiser Perceptions survey report found that more than two in five U.S. marketers and agencies use proprietary identifiers, such as first-party data, in their transactions with media sellers. According to the Winterberry Group, U.S. spending on identity solutions and services is estimated to reach nearly $10.4 billion in 2023.

In marketing, first-party data plays a key role in targeting and personalization. Let's understand the different methods or approaches to collecting it.

Collecting data through customer surveys or feedback

Collecting data through customer surveys or feedback
Conducting online customer surveys and issuing feedback forms are the most direct and effective methods of collecting first-party data. Surveys and feedback forms offer clear information about customer satisfaction levels and preferences. They also help organizations identify key areas for improvement in their products or services.

According to Statista, 66% of respondents considered customer feedback as their primary source of first-party data, while 59% considered customer demographics as their primary source.
According to SurveyMonkey research , 85% of customers provide feedback after a good experience, compared to 81% after a negative experience.