The digital marketing field is filled with innovative, integrated solutions. Companies have a tremendous opportunity to collect, arrange, and use user data from numerous sources to create activation-ready audiences, thanks to CDPs (Customer Data Platforms). Even though this is an essential component of any company’s IT stack, many companies claim their ability to provide first party identity resolution skills that may be deceptive to marketers.

First-party identity and customer data platforms are an integration of technologies that streamline the capture, storage, and analysis of customer data from multiple sources. The result is a centralized repository that provides real-time visibility into customers, products, and services to drive loyalty, adoption, and retention in new markets.

A first party identity and customer data platform enable companies to remove the barriers between siloed databases while ensuring compliance with GDPR standards. With so much red tape around privacy concerns, vendors remain hesitant to share personal information with marketers outside their companies. Even if they do, finding the right person at the company with all those different last names is almost impossible!

What is First-Party Data?

First-party data is user data that a company has collected and owned. The company’s software and systems are used to gather customer data. The company can create ads, content, and experiences tailored to a person’s interests by using their data (digital interactions, purchase history, behavior, preferences, etc.).

There are many challenges when it comes to collecting customer data for marketing purposes. Many organizations have fragmented databases with lots of duplicated information or scattered records. As a result, it is hard to know who your customers are and what they want.

However, how well you can first identify your customer will eventually determine how well you can comprehend them. Additionally, if you are unable to recognize your clients or users, you will not be able to grow your relationship with them or gradually understand them. Magic Pixel has integrations to quickly implement tags and media pixels for first party data collection.

What are CDPs?

The purpose of a CDP is to monitor, track, and analyze customer interactions through bundled software that builds extensive customer databases. A CDP collects a lot of data on your customers, develops unified, individual profiles of those customers, and communicate with them efficiently and effectively via all available channels. Of course, a CDP needs to learn a lot about the user to develop that profile.

How can a CDP assist in keeping user data?

A customer data platform (CDP), which acts as the data collector, centralizes and streamlines your customer data infrastructure. You can instantly surface data if a consumer asks questions by removing discrete customer data sets. For example, let’s say that specific clients refuse to allow their data to be stored or will only let storage of a subset of their data. In that situation, you must quickly determine the locations of particular data points and the information communicated throughout your data pipeline.

Additionally, CDPs allow you to communicate consent updates and only send data based on aspects of consent, ensuring your company enacts and adheres to data policies and legal requirements.

In what ways does a CDP support data compliance?

CDP can help organizations comply with current and future data privacy laws, like the EU’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act. These regulations oblige businesses to grant customers the ability to access and have their data deleted. When diverse customer data is isolated across other systems and is simple to overlook, meeting these needs might be difficult.

How Can Customers Leverage First-Party Identity to Improve the User Experience?

Today’s customers demand more profound, contextual interactions with brands to get more value from their product usage and experiences. As a result, customer retention is a significant challenge for businesses across all industries. For example, according to the market research firm Statista, the average customer retention rate for companies in the global hospitality industry is 66.66 percent after one year, and the numbers continue to drop from there.

Marketing to new visitors is one of the significant problems brands encounter without third-party data. Segmenting and optimizing are difficult when you don’t have any information on a user—the modelling of looks-alike. However, you can market to new customers starting with these plausible assumptions by leveraging first-party and second-party data to develop models of your present users, then fine-tune and optimize as you learn more about them.


Everyone talks about using your first-party data to create a unified user view or a single customer view. It’s all the rage to use a first-party data approach. And it’s one of the most important steps in carrying out smart, efficient marketing is harmonizing your data across barriers in your company.

You may gather this data in one location using a customer data platform (CDP). However, if you are pondering about first party data collection and privacy compliances, then we are here to help you. MagicPixel can assist you in capturing first-party data, complying with privacy laws & improve site performance. Book a Demo, and we will be in touch with you.