First-Party Data Statistics Every Marketer Should Know 

Data is the cornerstone of every successful business. According to a post by The Economist, data is the ‘new oil’ of the digital era, as it is the most valuable resource in the world today. Companies often use personalized data to make more informed decisions and drive business growth. 

Did you know that 80% of consumers believe personalized user experience positively impacts purchase decisions? So, businesses must understand customers’ wants and deliver personalized solutions that address their needs. 

First-party data is one of your secret weapons through which you can deliver and enhance personalized experiences for your customers. 

This article compiles first-party data statistics, covering the crucial aspects that every marketer should know. It offers key insights into consumer behavior and preferences and how first-party data helps brands make informed decisions and enhance customer experiences.  

Leverage these insights to personalize your marketing efforts, improve your brand image, and stay ahead of the competition. Read on to harness the full potential of first-party data and elevate customer experiences.

What is First-Party Data? – Definition & Examples 

First-party data refers to information collected directly from customers through their interactions with the brand across various offline and online touchpoints. Primarily used for personalized marketing and improved customer experience, first-party data helps organizations better understand customer behavior and preferences and make informed decisions.

According to SalesForce’s State of Marketing Report, customer insight, first-party, and transactional data are the top three data sources used by 84% of marketers. 

Some common examples of first-party data include: 

• Website or mobile app analytics 
• Subscription data (collected from users subscribed to newsletters or email campaigns)
• Customer surveys or feedback
• Customer service interactions
• Loyalty programs 
• Data stored in CRM (customer relationship management) systems 
• Data gathered from social media profiles 
• Order history 
• Transactional records

First-party data: Quintessential for marketing

Take a look at these statistics to understand the importance of first-party data for marketing: 

According to a 2024 Acquia CX Trends Report, 93% of marketers believe collecting first-party data is more critical than ever for an organization. They understand the pivotal role of first-party data in knowing the target audience and creating a personalized customer experience (CX).  
Based on Forrester Consulting’s 2024 research paper findings, incorporating first-party customer behavioral data into marketing strategies positively impacts customer acquisition costs by 83%, customer satisfaction by 78%, brand awareness by 75%, conversion by 73%, and ROI by 72%. 
A Gartner survey revealed that in 2023, nearly 60% of market leaders believed collecting first-party data while balancing customer value and privacy to be more challenging. However, over 50% of market leaders participating in the survey who strongly prioritized first-party data reported achieving better results in customer retention.
According to eMarketer, PayPal’s recent launch of a new advertising platform, PayPal Ads, would harness its first-party data from over 400 million PayPal users, plus 90 million Venmo users and millions of Honey users. The payment giant also gets access to its 225 billion transactional 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 like first-party data when transacting with media sellers. According to the Winterberry Group, US spending on identity solutions and services was estimated to reach nearly USD 10.4 billion in 2023.

Different methods to collect first-party data

In marketing, first-party data plays a pivotal role in targeting and personalization. Let’s understand various methods or approaches to collecting them.

Gathering data through customer surveys or feedback 

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

According to Statista’s 2024 reports, 66% of respondents considered customer feedback as the primary source for first-party data, while 59% believed customer demographics as a primary source.
According to research by SurveyMonkey, 85% of customers provide feedback after a good experience, compared to 81% after a negative experience.

Collecting customer data through CRM systems 

Customer relationship management (CRM) systems are a key source of first-party data, as these systems store information sourced directly from customers. 

The data includes customer profile details, customer service interactions, and order/purchase history. CRM systems track, collect, and analyze customer data, providing businesses with insights to help them make more informed decisions. 

Here are some CRM statistics that highlight their importance in first-party data management. 

According to a CRM user survey, 74% of the respondents agreed that CRM platforms helped improve their access to customer data and enabled them to offer more personalized experiences. 
Businesses of all sizes and industries widely adopt CRM systems. According to a survey by Freshworks, 73% of businesses are likely to integrate CRM software in 2024. Additionally, 94% of tech businesses and 71% of small businesses  
According to Statista, the global CRM software market size is expected to be worth nearly USD 89.03 billion by the end of 2024 and reach a projected value of USD 145.60 billion in 2029.
Salesforce claims its CRM system increases forecast accuracy by around 42%. CRM systems help businesses better understand and address customers’ needs by efficiently managing all customer-related data and information. 

Tracking consumer data on websites or mobile apps

Tracking websites or mobile applications is an effective way of gaining first-hand customer insights, including user preferences, behavior, and overall engagement. 

It helps assess essential metrics such as page views or visits, session duration (the amount of time visitors spend on a web page), click-through rates (CTRs), and traffic sources. 

Here are some relevant statistics on the above metrics: 

As per a Statista survey in August 2020 in the United Kingdom (UK), 72% of marketing companies gathered customer data through their websites. 
Based on region, the percentage of customers using desktops is relatively high in Europe. As shown in a 2023 Comscore study referred by SmartInsights, France (19%), the UK (18%), Finland (18%), Germany (16%), and Norway (15%) were the leading European countries using desktops when using the internet. On the other hand, Asian countries had the lowest use of desktops—Hong Kong (9%), India (5%), Indonesia (4%), and Taiwan (1%).   
Based on the number of page views per web session in 2022, Statista found that globally, websites in the energy, utilities, and construction sectors had the highest average visits per online session. During Q4 2022, desktop users in these industries viewed about seven pages per session. Travel and hospitality followed, with nearly six pages per session. The travel and hospitality sector topped the list for page views for mobile users, closely followed by retail.
MobiLoud says that nearly 60% of all web traffic worldwide comes on mobile devices. Among these mobile internet users, nearly 90% prefer to use mobile apps for a better user experience. It further says, referring to reports from Criteo/Button, that mobile apps have a 157% higher conversion rate than mobile websites and score better in several key engagement metrics.
Clario explained how Meta (formerly Facebook Inc.) legally collected the most possible data, almost 80% of user data. Instagram, the Meta-owned app collected 69.23% of all available data, including users’ hobbies, sexual orientation, weight, and height. In 2023, Meta generated over USD 131 billion in ad revenues.
In the 2022 survey, Databox found that 60% of desktop users spent an average session duration of 3.5 minutes, compared to over 70% of mobile phone users who spent the same session duration.
According to a study by onDeck, Facebook Messenger, Instagram, Zoho Analytics, PayPal, Amazon A to Z, Google Drive, Adobe Scan, Glassdoor, X-VPN, eBay marketplace, and Square Appointments are the big business apps collecting the most data from customers or users.

Gaining insights through customer service/support interactions 

Customer service or support collects data through customer interactions—including queries, ratings/feedback, and complaints—helping businesses identify pain points, customer satisfaction levels, and product issues. Such insights help them deliver enhanced, individualized customer experiences. 

Take a look at these statistics to know how customer service interactions are a goldmine of first-party data: 

A Khoros survey found that 83% of consumers agreed they were more loyal to the brands that resolved their complaints and delivered excellent support. Also, 43% of consumers are more likely to repeat purchases after a satisfactory customer service experience.
In a 2020 study conducted by CFI Group, 36% of the respondents shared their customer service experiences with others. About half of them shared their experiences on social media—39% shared their experiences on Meta (Facebook), while about 13%-15% on Instagram, Twitter, and YouTube. 

First-Party Data vs. Third-Party Data 

First-party data increasingly overpowers third-party data in light of rising user privacy concerns

Unlike first-party data, third-party data is sourced from users with whom a company does not have a direct relationship. Businesses rely on third-party data, particularly those looking to enter new markets, to understand market conditions and consumer preferences more comprehensively. 

One of the critical reasons for reducing third-party data popularity is the rising privacy concerns and incidences of data breaches. According to a report released by SecurityScorecard and the Cyentia Institute, 98.3% of organizations globally have integrations with at least one third-party vendor that experienced a breach within the past two years.
According to Salesforce’s latest State of Marketing Report, the percentage of digital marketers still using third-party data has decreased substantially from 75% in 2022 to 61%. This illustrates the problem of finding reliable information, thereby making customer insight, first-party and transactional data to be the top three data sources used by 84% of marketers.

Let’s take a look at some statistics that indicate how third-party data breaches are becoming increasingly common: 

In 2022, the personal data of over 400 million Twitter users was stolen using an API vulnerability. 
The healthcare industry accounted for 34.9% of all third-party data breaches in 2022, becoming the most targeted victim of data breaches among industries.

According to the Third Party Breach Report 2023 by Black Kite, the healthcare industry, consistent with the previous year, was the most common victim in third-party breaches, accounting for 34.9% of incidents in 2022.

As per the same report by Black Kite that gathered feedback from 250 CISOs, 53% claimed being targeted by at least one ransomware attack the previous year, while 69% anticipated facing at least one ransomware attack in 2022.
According to a cyber security breaches survey 2022 report by Gov.UK, 92% of colleges, 70% of secondary schools, and 41% of primary schools across the U.K. reported incidents of third-party data breaches in 2022. 
In 2021, ransomware accounted for nearly 27% of all third-party attacks, becoming the most common form of third-party data breach.

Increasing risks associated with data privacy have brought third-party data practices under the lens of major regulatory bodies, resulting in the enforcement of stringent privacy regulations such as CCPA and GDPR. 

As a result, Google aimed to phase out third-party cookies completely starting in January 2024. Google explained that Google Chrome started restricting third-party cookies by default for 1% of users in early 2024 and completed the plan in July. It also stated that the complete ramp-up of all users is subject to addressing any remaining competition concerns of the UK’s Competition and Markets Authority (CMA).

Given this scenario, businesses today increasingly turn to first-party data as it is more accurate, reliable, and secure. 

Wrapping up

Using first-party data statistics, businesses can learn and understand the facts associated with customer behavior, preferences, and needs. The statistics will help marketers make informed decisions about their marketing efforts, focusing on the target audience with personalized services or products.  

With rising privacy concerns among customers and third-party data becoming less reliable, first-party data has become more crucial than ever as it offers businesses valuable customer insights. These insights help them personalize marketing and build trust with customers.

Frequently asked questions