First-party data: retailers’ most valuable asset

An asset that is already at the checkout

Every purchase leaves a record: what was sold, at what price, in which store, at what time and, if the customer identifies themselves, to whom. That record is first-party data: it comes from the direct relationship between the retailer and its customer, it is not bought from a third party and no competitor has it. In a market where third-party cookies are losing ground and advertisers demand measurable results, that asset is worth more than ever.

First-party data is the one thing a retailer has that no competitor can copy.

BCG estimates that a grocer that combines a best-in-class loyalty program with one-to-one personalization typically improves revenue and profit by 3% to 5%, and that retail media and data monetization add 1% to 2% of revenue at margins above 40% (BCG).

Where to start

• Identify the customer at every purchase, with their consent and a clear reason to do so: a benefit, an electronic invoice, a service.
• Organize the data before exploiting it: one record per customer, well-classified products and rules on who can access what.
• Connect the data to a concrete decision from the first month: which promotion is repeated, whom to talk to and which assortment to adjust.
• Treat privacy as part of the product: customers share their data when they understand what they get in return and trust how it is used.