In today’s rapidly iterating digital world, few assets are as valuable as first-party data. Retailers, especially, are sitting on a treasure trove of information that offers not just insights but the key to transforming customer relationships, driving targeted advertising, and building more profitable media networks. With the phase-out of third-party cookies and rising consumer privacy regulations, first-party data has become essential for businesses looking to stay competitive and compliant.

Paul Frampton, president of marketing consultancy CvE, perhaps put it best when he said, “First-party data is pure gold. When you collect data directly from your audience, you’re getting the most accurate and reliable data points.” It’s not just hype—first-party data offers retailers a direct line to their customers’ preferences and behaviors. When leveraged correctly, it can lead to highly personalized marketing campaigns, stronger customer loyalty, and measurable returns on investment (ROI). But how do retailers turn this data into gold?

What is First-Party Data?

First-party data refers to information collected directly from customers through interactions across various touchpoints, such as websites, apps, and in-store purchases. Unlike third-party data, which is often aggregated and sold by external companies, first-party data is owned by the retailer and offers rich, direct insights into consumer behaviors.

“First-party data is not just about having numbers on a spreadsheet,” Frampton explained. “It’s about understanding who your customers are, what they care about, and how they behave at every stage of the purchase journey.”

With first-party data, retailers can tap into detailed insights such as what products customers are browsing, which promotions drive engagement, and how often a particular customer visits the store or engages with the brand online. This level of granularity is a goldmine for creating personalized experiences that resonate with customers on a deeper level than generalized, cookie-driven advertising ever could.

The End of Third-Party Cookies: A Catalyst for Change

The shift to first-party data has been driven largely by the impending demise of third-party cookies, long a backbone of digital advertising. Google’s decision to phase out third-party cookies in its Chrome browser, combined with Apple’s move to block third-party tracking on Safari, has left retailers scrambling for alternatives. This has made first-party data all the more crucial.

“With third-party cookies going away, retailers can no longer rely on external data to target customers,” said Rob Taylor, Global Content Manager at Criteo. “First-party data (could be) your golden ticket to maintaining targeted marketing in a cookieless world.”

Third-party cookies enabled advertisers to track users across websites and serve them relevant ads based on their browsing history. However, with privacy concerns and regulatory pressures mounting, the ability to track users across the web is diminishing. As a result, retailers are turning to first-party data to fill the gap and power more direct, consent-based marketing strategies.

Retail Media: A New Revenue Stream

One of the most exciting applications of first-party data for retailers is its use in retail media. Retail media refers to the ad space that retailers can sell to brands, leveraging their customer data to create highly targeted advertising opportunities. Retailers like Amazon and Walmart have pioneered this space, using their vast amounts of first-party data to serve ads both on their platforms and across the broader web.

“Retail media is fast becoming one of the most lucrative revenue streams for retailers,” said Suzanna Stevens, brand sales director at Adstra. “By leveraging their first-party data, retailers can offer advertisers unique insights into customer behavior that they simply can’t get anywhere else.”

The retail media landscape is booming, with global revenue expected to reach $100 billion in the next five years. But it’s not just the big players like Amazon and Walmart that stand to benefit. Smaller retailers, too, can carve out a niche by leveraging their own first-party data to offer advertisers tailored, hyper-relevant ad placements.

However, with over 100 retail media networks operating in the U.S. alone, the challenge lies in standing out. “Standardization will take time,” Frampton noted, “but the key to long-term success in retail media is building trust with advertisers and ensuring that the data is both accurate and actionable.”

Personalization: The True Value of First-Party Data

At the heart of first-party data is its ability to enable personalization—one of the most sought-after goals in modern marketing. With the right data, retailers can deliver tailored experiences that feel relevant to the individual customer, rather than generic campaigns aimed at a broad audience.

“Consumers willingly trade their information for more relevant, personalized experiences,” Frampton pointed out. First-party data allows retailers to do just that—whether it’s recommending products based on previous purchases, sending personalized discounts, or tailoring email campaigns to specific behaviors.

Take the example of Colgate-Palmolive, which redesigned its consumer-facing websites and apps to make it easier to collect first-party data. The company uses this data not only for transactional insights but also to understand how customers interact with their content and what they’re searching for. According to Brigitte King, Chief Digital Officer at Colgate-Palmolive, “The advent of the DTC [direct-to-consumer] model gives us access to first-party data sets we never knew we could have before.” This allows Colgate to provide more personalized experiences and build stronger customer relationships.

Data Integration: A Critical Challenge

Collecting first-party data is just the beginning. The real challenge lies in integrating and activating that data to deliver a seamless customer experience. Many retailers struggle with data fragmentation, where customer data is scattered across multiple systems, making it difficult to create a unified view of the customer.

“You need somewhere to safely store your data and a way to engineer it so that it becomes your center of truth,” said King. This is where technologies like Customer Data Platforms (CDPs) come into play, allowing retailers to centralize their first-party data and make it accessible for marketing, analytics, and sales teams.

By integrating data across channels—online and offline—retailers can create a 360-degree view of the customer. This not only improves personalization but also helps with measuring the effectiveness of marketing efforts. As Frampton noted, “Measurement is key to proving the ROI of first-party data-driven campaigns, but it requires integrating data from multiple touchpoints.”

The Path Forward: Building a First-Party Data Strategy

For retailers looking to harness the power of first-party data, the time to act is now. As privacy regulations tighten and third-party cookies phase out, first-party data will become even more critical for personalized marketing and targeted advertising.

To build an effective first-party data strategy, retailers should begin by identifying their data sources, ensuring they have the right tools to manage and analyze that data. It’s equally important to focus on creating a value exchange with customers—offering personalized experiences, exclusive content, or special offers in return for their data.

“Data collection is just the first step,” explained Taylor. “You need to activate that data in a way that creates real value for both the customer and the business.” This means not only having the right technology in place but also ensuring that data is collected ethically and in compliance with privacy regulations like GDPR and CCPA.

A Golden Opportunity for Retail Marketers

First-party data represents a golden opportunity for retail marketers. It offers the ability to create personalized, relevant customer experiences, drive targeted advertising, and generate new revenue streams through retail media. However, turning this data into real value requires a strategic approach—one that integrates data across touchpoints, complies with privacy regulations, and focuses on delivering a seamless, personalized experience.

As Frampton summed it up, “Perfect data doesn’t exist, but first-party data gets us closer to building long-term relationships with customers.” In an increasingly cookieless world, first-party data is not just a marketing tool—it’s the gold standard for future-proofing retail strategies.