How to use first-party data to create high-converting membership programs

Stats reveal that 54% of global brands now rely exclusively on first-party data to personalize customer experiences.

The reason for this is simple: First-party data is high-quality, easy to manage, and unlike third-party cookies, it’s here to stay.

However, the problem is most e-commerce brands barely scratch the surface. They collect data, use it for basic personalization, and stop there. Meanwhile, CAC keeps climbing, loyalty programs fall flat, and repeat purchases stay stubbornly low.

But when used well, first-party data can turn one-time buyers into loyal members. In this post, we’ll walk through how to take the customer insights you already have and use them to design membership programs that convert, keep customers engaged, and generate predictable revenue.

Why is a first-party data strategy the key to retention for e-commerce?

Before we dive into tactics, let’s define what we mean by first-party data. Simply put, it’s the information your customers share directly with you. Some first-party data examples include: purchase history, browsing behavior, email engagement, survey responses, and preferences. Unlike third-party data, which is disappearing fast, first-party data is both accurate and actionable.

For Shopify Plus and DTC brands, this data is extremely valuable.

It allows you to design offers and membership perks that actually resonate because it reveals how often customers return, which products they prefer, and what price points they’re comfortable with. Instead of guessing, you can build perks around proven buying patterns.

For example, by using first-party data, you could offer store credit that matches typical basket sizes or early access for categories with frequent repeat purchases. Data-driven memberships rooted in these insights can keep customers coming back month after month.

Now, let’s explore how exactly this data powers high-converting retention strategies like membership programs.

How does first-party data power membership programs?

A high-performing membership program isn’t built on guesses; it’s built on insights. Here’s how to use first-party data in 4 practical ways to shape a program customers actually want to join:

1. Identifying the right fit for memberships

Not every brand should launch a membership program. First-party data helps you spot the signs of fit: frequent repeat purchases, a wide SKU catalog, and a healthy average order value (AOV).

For example, a beauty brand with 100+ SKUs and loyal shoppers is primed for success, while a luxury jewelry brand with low repeat rates is probably not.

But the best signal of whether a membership will work isn’t your catalog size or AOV, it’s your shoppers’ behavior. If your customers come back often and engage with your brand, there’s a way to build retention around them. And to do that, you need to include perks they actually want.

2. Designing perks customers actually want

Customer surveys paired with behavioral data reveal what perks drive conversion.

Discounts and store credit consistently outperform free shipping.
Early access to drops or exclusive launches also scores high.

For instance, beauty shoppers often prefer a monthly store credit they can use on any SKU, while apparel buyers value first dibs on seasonal collections. The key is alignment: perks should match how your customers already shop.

With perks mapped out, the next question is: what will customers actually pay, and how often? That’s where pricing and billing come in.

3. Pricing and billing optimization

First-party data like your AOV and time-to-repeat purchase show what customers can realistically afford and how often they’re likely to come back. That insight lets you set a price that feels natural.

For many brands, a store credit model (where membership fees convert into credits) performs best because it lines up with actual buying behavior while also ensuring upfront cash flow. For example, if your AOV is $80 and the repeat cycle is 45 days, the data might suggest a $30/month store credit membership as the sweet spot.

But setting the right price takes more than these basic inputs, and that’s where Subscribfy helps. We help you calculate the right membership price and frequency, so your membership program launches at the right value from day one. Grab 20 minutes with our experts to see what the right membership price should be for your brand.

Now that you’ve structured pricing, let’s talk personalization.

4. Personalizing the experience

Segmentation delivers results when it’s grounded in first-party data. By analyzing purchase history and engagement, you can treat VIPs differently from first-time buyers. Higher-margin cohorts might receive richer perks, while newer members could be guided with onboarding or occasional rewards.

The goal is to ensure every member feels the program was designed specifically with their journey in mind.

Now, let’s take a look at how you can practically implement first-party data to create a membership program for your brand

5-step framework for using first-party data collection to build a membership program

If you’re wondering how to use first-party data to build a membership program, here’s your practical 5-step guide.

Step 1: Audit your data

Dig into the details. Check your AOV and SKU breadth, along with the average time between purchases, repeat order rates by product, and which cohorts engage most.

These numbers will tell you if a membership model is viable.

Step 2: Survey your top customers

Use first-party data to identify your most loyal buyers, then ask them directly which perks they’d value most. For example, high-frequency shoppers may prefer rolling store credit, while occasional shoppers might choose early access to launches.

Step 3: Set pricing and billing cadence

Look at how often customers naturally return. If the average repurchase cycle is 30 days, a monthly plan may work. If it’s 90 days, quarterly might be smarter. First-party data takes the guesswork out of this decision.

Step 4: Design data-driven perks

Instead of defaulting to free shipping like every other Shopify brand, align perks with proven behavior. If data shows shoppers stack items in larger baskets, offer store credit. If certain segments buy limited drops, prioritize early access.

Step 5: Integrate and optimize

Use first-party data to decide where to showcase membership—whether on high-traffic PDPs, at checkout, or in post-purchase flows. Then track adoption, churn, and member vs. non-member performance to refine over time.

But even with this framework, there are pitfalls that many brands fall into. Let’s take a few of those.

Common mistakes brands make with first-party data

First-party data is powerful, but only if you use it well. Here are 3 common missteps most brands fall into when analyzing this:

Only looking at surface metrics: Many brands stop at checking AOV and order counts, but they rarely dig into richer insights like cohort performance, time-to-repeat purchase, or churn. Without this deeper view, you can miss clear signals of what drives loyalty and where members drop off.
Skipping customer surveys: First-party data alone can’t tell the whole story. Collecting zero-party data through surveys and feedback loops adds valuable context that helps you understand what customers are doing and why. Ignoring this step often leads to perks that sound good on paper but don’t convert.
Failing to segment: Treating every customer the same flattens results. First-party data allows you to separate VIPs from one-time buyers, new shoppers from loyal cohorts, and tailor experiences accordingly. Without segmentation, membership programs feel generic and underperform.

But analyzing first-party data well takes time, effort, and resources, and even then, most brands struggle to do it correctly.

That’s why many Shopify Plus and DTC brands choose Subscribfy: we take the complexity off your plate and help you launch a custom membership program in as little as two weeks.

How Subscribfy makes first-party data-driven memberships easy

First-party data isn’t just a reporting tool; it’s the foundation of high-converting membership programs. When used strategically, it can turn one-time buyers into loyal members who generate predictable, recurring revenue.

But analyzing this data and then creating memberships can take months. That’s where Subscribfy helps. We assist Shopify brands in launching successful memberships through:

All-in-one retention suite: Memberships, product subscriptions, loyalty program, and chargeback prevention in one place, so your brand can choose one or a combination of these retention strategies based on customer behaviour.
White-glove onboarding: Our team analyzes your first-party data, designs your perks, creates mockups, and trains your CX team.
Post-purchase messaging: The right post-purchase messaging can make or kill your repeat purchase rates. Our team uses the best ways to leverage first-party data for post-purchase messaging and creates targeted emails and SMS custom to your customers’ needs.
Ongoing optimization: We don’t just stop at creating memberships. After launch, we compare member vs. non-member behavior, track churn, and refine strategies for higher ROI.

Subscribfy is a retention partner that works alongside your team, making sure you turn one-time buyers into brand advocates.

If you’d like us to audit your data and design a membership program tailored to your customers, book a call with our team today, and we can get you live in as little as two weeks.

Frequently asked questions

How to collect first-party data?
First-party data, which is information collected directly from your audience, can be gathered through your own channels: Shopify analytics, customer surveys, email/SMS engagement, and on-site behavior.

How to use first-party data in marketing for e-commerce?
To use first-party data in marketing for e-commerce, start by applying purchase history to recommend products, segment campaigns based on email/SMS engagement, and use browsing behavior for tailored offers. Survey responses can also guide perks and messaging, making campaigns more relevant and effective.

Why is first-party data important?

First-party data is important because it provides you direct, accurate, and reliable insights into your customers’ behavior and preferences, enabling more effective marketing, personalization, and improved customer experiences

What is zero-party data vs first-party data?
Zero-party data is intentionally shared by the customer, such as through surveys or preference centers, while first-party data is collected through customer behavior and interactions with a business’s channels, like website activity or purchase history.

What is first-party data vs third-party data?

First-party data is information collected directly from a company’s own audience, while third-party data is collected by a separate entity and then sold to other companies. Third-party data is usually aggregated by outside platforms and is less accurate and increasingly restricted.

Explore more insights and guides from our experts

Customer retention strategy for Black Friday: What to do before the holiday rush hits
5 reasons why your ecommerce loyalty program isn’t working (and what to do instead)
Is your ecommerce customer retention strategy costing you money? 5 red flags to watch for
3 industry-leading membership programs and what your Shopify brand can learn from them
How to increase customer lifetime value by 2–4X in Shopify using memberships