With the pending state and federal data privacy policies in the news, a timely review of the basics may be in order.
Let’s begin with first-party data, which is data you’ve collected directly from your customers. This data was widely collected by return mail but is now commonly collected by websites, mobile apps, call centers, social channels, and SMS. Collected directly from customers, this data is highly relevant and accurate. Leveraging the learnings from these interactions provides the marketer with the ability to craft relevant offers and personalized messaging. You may also define your preferred methods of communication while driving cross and upsell opportunities.
Stepping back to zero-party data, it has many of the features and characteristics of first-party data, but your customer is volunteering additional data. Interactive quizzes, loyalty programs, responses to preferences, and future purchases or intentions provide enhanced visibility to behavior which allows the seasoned marketer the ability to create and deliver relevant content in real time to maximize the probability of a successful selling opportunity.
Second-party data is first-party data that you have obtained from a trusted partner or source. The methods used to gather the data are similar such as mobile apps, websites, social channels, and survey responses, but you are one party removed from the collection. The quality of the partner generally impacts the quality and value of the data. However, second-party data is an important way to expand your data by identifying prospects that have similar characteristics to those of your customers.
Finally, third-party data is licensed from an outside source that is not the original collector of the data. Identifying and properly targeting audience segments for their outreach campaigns is how most companies grow their brands. In addition to carefully considering the type of customer you are targeting, the data provider should follow best practices in terms of privacy and quality.
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