Data isn’t just useful — it’s a valuable source of competitive advantage. Giants like Google and Meta built their empires by understanding and acting on user behavior insights. Now, however, small businesses now have a powerful edge of their own: first-party data.
With third-party cookies disappearing and privacy regulations tightening, first-party data collection has become essential. Why? Because this is data collected from direct interactions with your audience — people who already trust your brand enough to engage with you.
Whether it’s through website visitors, customer surveys, purchase history or email clicks, the insights you gain are not only accurate — they’re yours. This is your own data. And, used wisely, it can shape powerful marketing strategies, enhance the customer experience and help build long-term loyalty.
What is first-party data?
First-party data is the customer data your company collects directly through direct interactions — such as feedback forms, purchase transactions, website tracking tools or email engagement. It can include everything from basic contact details to customer preferences, customer behavior and even behavioral data tied to past purchases.
Unlike third-party data from external data providers or second-party data that you obtain through partnerships, first-party customer data is more reliable, more relevant and more respectful of privacy.
It’s also future-proof.
With data privacy laws making data sharing and audience tracking more complex, businesses that collect first-party data are better positioned to thrive in a privacy-first world.
Why is first-party data important for small businesses?
You don’t need to be a software company or tech giant to benefit from first-party data. In fact, using a strong first-party data strategy can help small businesses create better and more personalised experiences that truly resonate with their target audience.
Here’s why first-party data helps:
- It’s gathered through a direct relationship with your existing customers and social media followers
- It provides valuable insights into customer behavior, intent and preferences
- It increases data accuracy, leading to smarter marketing campaigns
- It ensures compliance with privacy regulations and builds trust through data transparency.
Best of all? It allows you to create personalised experiences based on actual customer actions, not assumptions.
RELATED: eBook: The small business guide to customer relationship management (CRM).
Ways to collect first-party data.
There are many ways to start collecting data directly. Here are some of the most common and effective methods:
1. Sign-up forms and lead capture tools.
These give you access to data points like name, location and interests — perfect for building a profile of your target audience.
2. Surveys and feedback forms.
Customer feedback is a powerful source of insight. Whether you’re specifically targeting respondents with NPS surveys or offering open-ended feedback options, this behavioral data can guide product improvements and service delivery.
3. Email and social media analytics.
Track engagement from your newsletters and social posts to identify customer preferences and trends in user behavior.
4. Website analytics.
Tools like GA4 help you track how website visitors move through your site, where they drop off and what content drives conversions. This can inform your marketing efforts and sales process.
5. CRM systems.
A strong customer relationship management platform is key to organising and activating your valuable first-party data. You can track the customer journey, review customer interactions and integrate tools to improve your marketing campaigns and outreach.
6. Competitions and gated content.
Encouraging people to enter competitions or download exclusive content gives you another avenue to collect directly — as long as you obtain explicit consent and clearly explain your data use.
RELATED: You’ve created your CRM database. Now what?
Best practices for first-party customer data collection and management.
1. Decide on what you really need.
Most small business owners have one thing in common: they’re time-poor. The reality is you probably don’t have a lot of spare time to be trawling through mountains of customer data every day. With this in mind, focus on the information that will be most useful to your specific business.
2. Be secure.
When you gather personal data about clients, it’s important to have a plan to keep that information safe. Most popular third-party platforms have robust security measures in place, but if you’re exporting that data to use anywhere else, make sure it’s stored securely and encrypted wherever possible.
3. Be ethical.
Trust is the foundation of successful customer relationships, and it’s crucial to make sure you’re transparent about your collection policies. Let customers know when you will be collecting their data (such as via surveys or competition forms) and include a privacy policy on your website that outlines how and when data may be used.
4. Invest in a CRM system.
As mentioned, a CRM system is incredibly handy for collecting and managing data in one place. Depending on the platform you choose, you can collect information directly via the CRM, import data from multiple sources, or both. This makes managing your data much more streamlined.
What does a CRM system do?
A complete CRM system does two things. Firstly, it keeps all your customer information in one spot. This includes:
- Contact details
- Appointments
- Service history
- Invoices paid and unpaid
Secondly, it delivers one simple platform to communicate to your customers from. This includes:
- Email marketing
- Appointment reminders
- Invoicing
Using a CRM template to compile customer data is also a good starting point if you’re new to the world of CRM and looking for a quick solution.
Once you get the hang of compiling and analysing simple customer data, you can import your database into a more sophisticated CRM platform with additional tools, like marketing automation and lead management.
Best practices for managing your first-party data.
Once you’ve started collecting first-party, zero-party or even second-party data, make sure you manage it ethically and effectively. Here’s how:
Focus on what matters.
Don’t overwhelm yourself with data you won’t use. Start with data points that support your most pressing marketing strategies or improve the customer experience.
Respect data privacy.
Transparency matters. Make sure your privacy policy is clear, and always manage user consent when asking for personal data. This helps you stay compliant with evolving data privacy laws.
Use the right tools.
CRM systems and customer data platforms can help streamline how you store, analyse and activate your first-party data. Choose tools that grow with you and support your ongoing process of data analysis and optimisation.
RELATED: What is a CRM system and how can you use it?
How to leverage first-party data in your business.
So what do you actually do with all this data collected? Here are a few ways to start leveraging first-party data in meaningful ways:
- Refine your marketing efforts based on real user behavior and campaign performance
- Deliver personalised experiences to your most engaged leads
- Use predictive analytics to forecast customer actions
- Segment by customer purchase history to trigger smart re-engagement sequences
- Improve your customer journey by identifying where customers are dropping off.
Every small business has the potential to turn first-party data into actionable strategy — it just takes consistency and a willingness to test, learn and adapt.
Final thoughts.
In a world without third-party cookies, first-party data is your most valuable source of insight — and a must-have for any smart data strategy. It gives you full control over how you connect with your target audience, measure success and build long-term loyalty.
By prioritising first-party data collection, respecting privacy and using the right tools to analyse and act on your insights, you’re setting your business up for smarter decisions and stronger growth.
Looking for a better way to manage your data? A platform like Thryv brings your customer relationship management, communications and marketing together — helping you leverage data with less manual effort.
Ready to unlock the power of first-party customer data? Book a Thryv demo today and see how easy it can be to connect, convert and grow.
