Customer data comes in all shapes, sizes and systems. The data that companies collect directly is source data. Other data comes from partners or is acquired, what we call data from third parties and third parties. And then there is the new data of party zero.
Third-party data is collected and distributed in the same format as first and second party data. Independent researchers use surveys, interviews and feedback forms to gather information about a large audience. Then, like second-party data, organizations can purchase this information for their own use. What is it? First-party data is data about a company's customers that are collected and owned by that company.
Information about customers is compiled through software and systems that the company itself owns. The company can use this data (digital interactions, purchase history, behavior, preferences, etc. What is it? Second-party data is source data from a trusted partner. This data can help a company achieve greater scale than relying solely on its own data, and since data is not sold openly, it can provide greater value than third-party data, which is generally available to anyone who wants to buy it.
What is it? Unlike source data, third-party data generally does not come from the direct relationship between a customer and a company, but rather from an external source that has collected the data. Third-party data often comes from a variety of sources on the Web, and this data is aggregated, segmented, and sold to businesses for their own advertising use. Source data, typically the most valuable to an organization, is the data that companies have about their customers. It typically contains personally identifiable information (PII) and all information collected about customers through their interactions with the company.
As technology continues to evolve, companies are collecting, ingesting and leveraging source data faster than ever before. This data provides substantial information that marketers can use to evolve the way they interact with their customers and ultimately improve the customer experience. Third-party data has been the next most thought about in the context of customer data. Usually, this data contains aggregated information about a larger group, of which customers are a subset.
Usually, an aggregator pays other organizations for their source data. Sources may include websites, social media, surveys, government censuses, and subscriptions. It contains information about the markets in which the company operates, as well as those in which it does not operate. It can be useful for prospecting, people, understanding sentiment, identifying potential geographical regions for growth and much more.
However, if an organization has access to this information, so do all its competitors. Third-party data provides less accurate information that is more generalized and directional in nature. In these scenarios, partnerships aim to benefit both organizations, and both organizations have the ability to leverage third-party data (with the right permissions, of course) to expand what they know about their own customers and others like them. The association itself determines what source data will be shared with the partner and, precisely, how it is captured and shared.
Zero-part data is a subset of what is traditionally considered first-party. Customers have full control over zero-party data. Organizations are increasingly recognizing the difference between customer and lead data that they are blessed to act on (part zero) and more traditional source data, such as transaction history. Customers (or prospects) provide zero-party data to an organization to tell you what they want them to know about themselves, and they can change it as their preferences and relationship with the organization evolve.
While organizations have traditional source data, customers have zero-part data. As a result, companies cannot transfer it or share it with others. Loyalty programs are an example of successful relationships between parties that can leverage third-party data. Marketers must have good control of the source of the data used, the availability of data from other parties and treat existing customer data even more carefully.
But how do you find those companies? One of the easiest ways to find a buyer or seller is through a third-party data marketplace, such as the Lotame Private Data Exchange (PDX), which connects both parties to allow third-party data transactions. . .