Why first-party data is your most valuable business asset

What is first-party data?

First-party data is information collected directly from your customers, including:

• Emails and phone numbers gathered through sign-ups or purchases

• Purchase history that reveals product preferences

• Website interactions, such as time spent on pages or abandoned carts

Unlike third-party data (collected by advertisers) or second-party data (shared between businesses), first-party data belongs entirely to you. This data becomes the foundation of personalized marketing and repeat sales.

1. Stay in control—no more algorithm changes

Social media algorithms constantly change, which affects how many people see your posts. One day, you might reach thousands; the next, only a fraction of that. Owning first-party data ensures you control your communication.

• Email newsletters and SMS updates are seen directly by your customers.

• You’re not competing with endless social feeds or subject to shifting ad rules.

Example: Imagine launching a new product. Instead of hoping followers see your Instagram post, you send a personalized email to your top customers, increasing the chance of conversions.

2. Save on rising ad costs

Facebook, Instagram, and Google ads are getting more expensive, making it harder to see a positive return on investment (ROI). With first-party data, you can skip paid ads and focus on nurturing relationships directly.

• Retarget existing customers with email promotions or loyalty rewards.

• Use automated SMS reminders to boost repeat sales, all without ad spend.

Pro tip: Send segmented offers to specific customer groups. For example, reward frequent shoppers with exclusive discounts while nudging inactive customers with personalized promotions.

3. Higher engagement with emails and SMS

While Instagram posts might get lost in the noise, emails and SMS messages have much higher open and click-through rates.

• SMS campaigns can achieve open rates of 98%, compared to organic Instagram reach, which often drops below 10%.

• Email marketing has an average ROI of 4,400%, far outpacing most paid ads.

This direct access to customers helps you build stronger relationships and boosts loyalty over time.

4. Gain deeper insights into customer behavior

First-party data offers valuable insights into customer preferences. By tracking past purchases, engagement, and behavior, you can tailor your marketing efforts for maximum impact.

• Suggest products based on past purchases to drive upsells.

• Identify inactive customers and target them with win-back campaigns.

With data in your hands, you’re not just guessing what your audience wants—you’re giving them exactly what they need.

5. Future-proof your business

Social platforms come and go. Think about the businesses that invested heavily in MySpace or Vine—only to watch those platforms disappear. Your email list and customer data are long-term assets not tied to any third-party platform.

• Even if one platform becomes obsolete, your customer list stays with you.

• This stability lets you build trust and loyalty over time.

Own your audience; don’t rent it.

Relying on social media or paid ads puts your business at the mercy of algorithms and rising costs. Focusing on first-party data builds stronger relationships, improves ROI, and future-proof your business. With CHCKN’s tools, you can easily capture, manage, and grow your first-party data.

Take control today—start building your first-party customer data with CHCKN.

This article was created with assistance from ChatGPT.