Key Takeaways:
Learn more about the current data trends as we go into 2025.
Understand the difference between first-party and third-party data.
Discover best practices and tips to collect data while balancing your customers’ values of privacy and personalization.
Staying ahead in 2025 means knowing how to collect and use customer data the right way. Discover the trends shaping data collection and the practical tips that will help you turn insights into action — while keeping trust at the heart of your strategy.
The Current State of Data Privacy and Data Collection
Earlier this year, companies and small businesses were poised and ready to start phasing out their reliance on third-party data collection. Many of us sighed with relief back in summer when Google announced that they’d ditch the plan to kill third-party cookies in Chrome. Per new research from Statista, 32% of in-house marketers and 31% of agency marketers worldwide are still 100% reliant on third-party cookies as part of their data collection.
Despite this softening toward third-party data gathering, consumers still have a lot of data security anxiety, a reality causing many businesses to rethink their data collection methods. According to a Pew Research survey, 81% of Americans are concerned about how companies use their data, while 67% are confused and in-the-dark about what companies do with this data. In general, customers tend to feel more comfortable with first-party data collection than third-party, simply of how it’s gathered.
Not sure how first-party and third-party data are different? First-party data is simply information that businesses collect directly from their customers through interactions on their own platforms, such as websites or apps. This approach is perceived as more transparent and secure compared to third-party data collection, which often involves external entities gathering user information without direct consent. Aleksandra Korczynska, CMO at GetResponse, speaks to the top advantage of first-party data for businesses: “The main benefit of first-party data is that your target audience shares this information with you. You don’t have any concerns about permission to use this data.”
Marketers are embracing this shift in consumer preferences. Per SalesForce’s 2024 State of Marketing Report, 61% of marketers still use third-party data; that’s a 14% decline from 2022. The report also found that first-party data is one of the top three data sources used by 84% of marketers.
State law is evolving to support this increased adoption of first-party data collection. This past year, many states signed data privacy laws into effect, including California, Virginia, Rhode Island, Vermont, Maine, and Colorado. It’s likely that this trend will continue to grow in 2025.
Balancing Privacy with Personalization as a Small Business
When determining what data collection looks like for your business, it’s important to value keeping consumers’ data private while also giving them the personalized experiences they crave. Implementing transparent data collection practices is essential. Clearly inform your customers about the data being collected and obtain explicit consent, so individuals are aware of and agree to how you’ll use their information. Next, collect only the data necessary to provide personalized services. This practice is often referred to as “data minimization.” It helps the customer feel respected while still enjoying the tailored experiences they want.
Implement robust security measures, such as end-to-end encryption and regular security audits to protect customer data from breaches. Offer opt-in personalization empowers customers to choose whether they want personalized experiences, enhancing their sense of control over their data. Also, regularly updating privacy policies and clearly communicating any changes to customers. This reinforces your commitment to protecting customer information. By adopting these practices, you’ll reap the rewards of enhanced customer satisfaction and trust.
5 Ways to Collect and Use First-Party Data in 2025
First-party data is easier to collect than you think, and you almost certainly already have quite a bit of it if you know where to look. Here are five places to start:
Purchase Histories
Taking a look at what people have bought in the past can reveal the products or services your customers are most interested in. By segmenting customers based on their purchase histories, you can:
- Promote targeted sales campaigns.
- Hype new product or service launches to the customers most likely to engage and purchase.
- Create personalized offers to boost repeat business.
Website Behavior
Every click on your site provides valuable information about your customers’ intentions and interests. Use insights from website analytics and heatmaps to:
- Identify high-traffic pages and add relevant products or CTAs (e.g., newsletter sign-up forms).
- Improve the user experience by streamlining the path to conversion.
- Find areas where customers drop off and create capture opportunities to keep them engaged.
Form Submissions
Forms are one of the easiest ways to integrate first-party data collection into your marketing. These can include:
- Newsletter sign-up forms.
- Contact forms for inquiries or support.
- Quick surveys for feedback or preferences.
- Coupon code requests to drive conversions.
Phone Calls and Postcards with CTAs
Direct communication methods like phone calls and postcards can also help you gather first-party data. Be sure to:
- Use phone calls to understand customer needs and preferences.
- Include clear calls-to-action (CTAs) on postcards to encourage engagement (e.g., website visits or special offers).
- Record insights from these interactions to inform future marketing strategies.
Avoid Purchasing Lists:
We strongly recommend against buying pre-made lists. They often lead to poor engagement and can damage customer trust. Focus on building authentic relationships with your audience through reliable first-party data sources.
Whether you already have systems in place or are just starting out, first-party data is essential for creating customer-centric marketing campaigns. If you have it, why not use it?!
Some Pros and Cons of Third-Party Data
Here at TTG, we’re a huge fan of prioritizing first-party data. But third-party data has its place in marketing. It can be a helpful starting point for your small business, if you collect this data with your customers’ privacy in mind.
Third-party data collection can offer broad insights into market trends and potential customer segments. But it’s typically anonymous, which means it doesn’t provide the detailed, personal information that first-party data does. So, while third-party data can inform general marketing strategies, it may fall short in enabling the level of personalization that your consumers expect.
A common method to gather this anonymous data is through advertising on platforms like Google, Facebook, Instagram, and LinkedIn. These platforms allow you to reach wide audiences and collect aggregated data on user interactions with your ads. However, to create more personalized and effective marketing campaigns, it’s beneficial to complement third-party data with first-party data collected directly from your customers.
Step Up Your Data Collection in 2025
Need tweaking our ads to improve your third-party data collection? Looking for support as you adopt more first-party data collection methods for your business? Revamp your strategy with a TTG pro!