AI and first-party data: The gift that keeps on giving this holiday season

The holiday season is often hailed as the pinnacle of profitability for brands and retailers. But in order to succeed, they need to be able to understand their customers and provide them with the best possible experience. First-party data and AI can help retailers to do just that. By using and analyzing their own first party data, brands gain a powerful advantage in predicting and meeting customer needs. They can then use this information to personalize their marketing campaigns and create products, services and experiences that are personalized to meet specific needs of each customer.

In an era where third-party data reliability is diminishing, retailers are discovering the value of the data that they obtain directly from interactions and engagements with their shoppers and how this first party data helps them better understand customer behaviors, preferences, and purchase patterns.

But that’s just the start! Making sense of this treasure trove of information is where machine learning comes in. With the use of machine learning, brands can gain insights, identify trends, and predict outcomes making their holiday sales go further.

Let’s explore some key ways retailers are leveraging machine learning: 


1. Targeted marketing campaigns: Brands are harnessing the power of first-party data to craft precise and relevant marketing campaigns. By analyzing customer preferences and purchase history, brands can customize their messaging, offers, and product recommendations to cater to the unique needs of individual customers. This data-driven approach enables brands to personalize the shopping journey, ensuring that customers receive relevant offers that align with their specific interests, rather than a generic one-size-fits-all approach. 


2. Customer segmentation and targeting: Brands are able to segment customers based on demographics, behavior, and interests using first-party data. By targeting specific segments, brands can create personalized holiday campaigns that make customers feel valued. This drives engagement and boosts loyalty. Leverage first-party data to revolutionize your holiday marketing strategy! 


3. Dynamic pricing and promotions: Implementing dynamic pricing strategies during the holiday season is another way to get ahead of the competition. By analyzing customer behavior and purchase patterns, brands can identify optimal price thresholds, provide personalized discounts, and introduce time-limited promotions. This data-driven approach optimizes pricing strategies and creates a sense of urgency among customers, ultimately boosting sales. Discover how first-party data can revolutionize your holiday pricing strategy and drive exceptional results. 


4. Personalized product recommendations: AI-powered algorithms and first-party data allows retailers to create highly personalized product recommendations. By understanding individual preferences and past purchases, retailers can offer tailored suggestions that align with customers’ unique tastes and needs, increasing the likelihood of conversions.

For example, a retailer might use AI to track a customer’s browsing history and identify products that the customer has shown an interest in. The retailer could then recommend these products to the customer on the website or in an email marketing campaign.

This type of personalized product recommendation can be very effective at driving sales. In fact, product recommendations can account for up to 31% of ecommerce revenues.


5. Enhanced customer service: By leveraging your CRM , retailers can gain deeper insights into their customers’ preferences, providing a foundation for personalized and proactive customer service. AI-powered chatbots and virtual assistants can assist customers with inquiries, offering real-time support and resolving issues swiftly.

First-party data is a goldmine when it comes to understanding customer preferences, from their preferred communication channels to their favorite products and brands. This invaluable information sets the stage for personalized customer service interactions. Let’s delve into an example of how retailers can make this happen using AI:

A retailer with first-party data and AI capabilities can analyze customer behavior and purchase history to identify customers who are likely to experience product issues. With this knowledge, the retailer can take steps to prevent problems before they happen.

This proactive approach to customer service demonstrates the power of leveraging first-party data and AI. By using these technologies, retailers can personalize their interactions, build stronger relationships with customers, and provide exceptional support during the holiday season and beyond.


6. Increased customer engagement: Retailers are able to craft engaging experiences that captivate their customers by harnessing first-party data and machine learning. From personalized emails and targeted promotions to interactive content and social media campaigns, retailers can foster meaningful connections and drive higher engagement levels during the holiday season.

By analyzing customer interests, purchase history, and browsing behavior, AI algorithms can identify customers who are most likely to be interested in a specific product or promotion. With this valuable knowledge in hand, you can send these customers personalized emails or offer targeted promotions tailored to their preferences, significantly increasing the chances of capturing their attention and driving engagement.

This personalized approach is a game-changer in capturing the hearts of your customers! It showcases the tremendous power of first-party data and AI in creating tailored experiences that resonate with individuals. By harnessing these technologies, you’ll not only enhance customer engagement but also boost loyalty and drive impressive results during the holiday season and beyond.


7. Driving sales: The combination of first-party data and AI is a powerful driver of sales. By understanding customer behaviors, retailers can optimize their strategies, identifying opportunities to upsell or cross-sell, and delivering tailored incentives that entice customers to make purchases.

By analyzing customer purchase history and product views, AI algorithms can identify customers who have previously made a purchase and also shown interest in similar products. With this knowledge, you can send these customers targeted emails or offer promotions tailored to their specific interests, capturing their attention and increasing the likelihood of conversion.

But that’s not all! AI can also be used to personalize incentives that truly entice customers to make purchases. By leveraging AI algorithms, you can determine the optimal offer that is most likely to persuade a customer to complete their purchase. By understanding customer interests, you can offer personalized offers that motivate them to buy.


The combination of first-party data and AI holds potential for retailers during the holiday season. By understanding their customers’ preferences and behaviors, retailers can create personalized experiences, targeted marketing campaigns, and tailored product recommendations that drive customer engagement and boost sales. With the reliability of third-party data diminishing, the focus on capturing and leveraging first-party data becomes even more critical. The power of AI to analyze and make sense of this data at scale further empowers retailers to deliver exceptional customer experiences and build lasting relationships. As we enter the holiday season, embracing these technologies will be the key to unlocking success in the ever-evolving retail landscape.


About Rokt
Rokt is the global leader in ecommerce technology, enabling companies to drive incremental value from every transaction by offering highly relevant messages at the moment customers are most likely to convert. Rokt’s machine learning technology has powered billions of global transactions annually for the world’s leading companies, including Live Nation, AMC Theatres, PayPal, Uber, Hulu, Staples, Lands’ End,Gopuff, and HelloFresh. Founded in Australia, with US headquarters in New York City, the company operates in 15 countries across North America, Europe and the Asia-Pacific region. Rokt for a second year in a row joined the fastest-growing private companies in the US on the Inc. 5000 list in 2022.
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