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Data is everywhere-we create more than 2.5 exabytes (exabytes) of data per day, and researchers predict that there will be 163zettabytes (zettabytes) of data by 2025. In addition, there are many kinds of data related to enterprises. We have data from the first party, the third party, and now even the second party. How do you understand and distinguish?

First, first party vs. The second party vs. The difference between third-party data?

1. What is the first party data?

First-party data refers to data that companies collect directly from audiences, including customers, website visitors and social media followers. "first party" refers to the party that collects first-hand data for repositioning. In short, the first-party data is consumer information collected by the enterprise itself-in other words, "own". For example, an enterprise may have first-party data about consumers stored in its online CRM system. Such data may include demographic information (name, market training method, email address, etc.), purchase history, website interaction (from the company website only), and so on. The advantage of first-party data is that it is aimed at the enterprise's existing consumers, and marketer can create a highly personalized experience on top of its own data.

When it comes to redirection, first-party data is best because it comes directly from your audience and customers and is often considered the most valuable. It is not only the most valuable, but also something you can get for free, making it cost-effective. It is also relatively easy to collect and manage, especially if you use a data management platform. Privacy concerns around first-party data are minimal because you know exactly where it comes from, and as a marketer, you totally own it. This makes the data as reliable as possible in predicting and predicting future behavioral trends. It can consist of the following data:

Data on actions or actions taken through your website, application, or product

Data in CRM system

From your social media profile

Data from the email or product you subscribe to

Survey data

Customer feedback data

The first party data is king. Controlling first-party data should be a priority for any company today that wants to profit, learn, and use these assets to expand valuable audiences, deepen consumer engagement, and improve ROI in marketing.

In addition to first-party data, you may also be familiar with the term "second-party data" or even "third-party data".

two。 Second party data:

The second-party data is the first-party data that you don't collect yourself-in other words, the data you use is second-hand. Second-party data is sometimes shared among trusted partners, and if it is good for both parties' business, these partners reach an agreement to share their insights on the audience. For example, if a software company works with an agent partner to resell its product, the software company may share its first-party data with the agent, and the agent partner will use it as second-party data to lock in and attract new customers.

Second-party data is similar to first-party data, but it comes from sources other than your own audience. It can include data from many of the same sources, such as:

Activity website

Use of mobile applications

Social media

Customer survey

Although second-party data is a relatively new concept compared to first-party and third-party data, if you find the right data set, it can be very useful and therefore worth studying.

How to get second-party data: in order to get second-party data, you need to buy it directly from the company that owns it. Find a company whose data you need, establish a relationship with them and negotiate a deal. The buyer and seller must agree in advance on the type, price, how to obtain it and any other terms of sale. The seller may provide other companies with specific data points, audiences, or hierarchies.

3. Third-party data:

Third-party data is the data you buy from an external source, not the original collector for that data. Instead, you can buy it from large data aggregators that extract data from the various other platforms and Web sites that generated it. These aggregators pay for first-party data to publishers and other data owners. The aggregator then collects it into a large dataset and uses it as a third-party data sell. Many different companies sell this kind of data and can access it in many different ways.

After summarizing the data, the provider classifies the data according to industry, audience behavior and interest, and demographic characteristics such as age and gender. Then, each category is subdivided into specific parts, and the buyer selects the specific part they want to buy from the buyer. The name and content of third-party segments vary from vendor to vendor, so you need to know what you are buying and where it comes from before you can power your activities.

Third-party data is often collected, integrated and traded with companies to help them build audience insight to establish effective AD and redirection strategies, but since it is not collected from actual customers but is provided to competitors, how useful it actually is is debatable.

Second-party and third-party data is an important part of the data management platform. But make better use of your time and resources to collect first-release data about your own customers and site visitors to help you develop strategies for better results. Therefore, below we will focus on how enterprises should collect, build, and utilize first-party data. Because it is a solid foundation for establishing a consumer-centered marketing strategy.

Second, how to collect the first party data?

First-party data is collected by adding an element to your website, product, or social media profile that collects information about actions and actions and records them in your CRM or CDP. This data can be collected by the company when visitors log in or click on your website, view your products, participate in social media posts, or fill out questionnaires. If you have a CRM, you can use it to collect data from different sources in one place. Once you have all the information in the system, you can manage, analyze, and activate it together to fully understand your customers.

Third, how to use the first party data?

The data of the first party is of high value because of its quality. Because you collect it directly from the source, directly from your audience, you know it is accurate and that it is relevant to your business. Another benefit of first-party data is that privacy concerns around it are kept to a minimum because you know exactly where it comes from. Because of the high quality of the first-party data, especially marketer needs to know how to use the first-party data.

1. A model for predicting the future

The accuracy and relevance of the first set of data enables you to confidently predict future patterns, such as audience behavior. For example, if you are a marketer and your data shows that a particular user visits a web page about buying basketball shoes and places a pair in their shopping cart, you can infer that they may buy basketball shoes in the future. Conversely, if your audience rarely clicks on the banner AD but often participates in the video AD, you know they prefer the video AD and will continue to like them in the future. These insights allow you to choose an AD that is more attractive to the audience.

two。 Gain the opinions of the audience

Even if your audience is relatively small, first-party data can provide you with valuable insights. You can analyze your data, find out what your customers have in common, and use the audience optimizer to build an initial audience to include new customers with the same characteristics. You can expand your audience, improve your insight, and develop your business.

3. Personalized content and AD

You can also use first-party data to personalize content or AD that is displayed to specific users. The data you collect from website visitors will give you a better understanding of their interests and needs and allow you to provide them with personalized content. For example, you have various promotional videos on different topics that you want to share with potential customers as part of your inbound marketing strategy. By viewing data about what your users have viewed in the past, you can determine your users' interests and send them videos about science, sports, music, fashion, nature, health, or any area they are interested in.

Fourth, how to use the first party data effectively?

First-party data is used to reposition audiences through AD, training, and sales processes. It is also used to learn what an ideal or most suitable customer looks like, to learn more about how to reach a new audience, and how to close future visitors to your customers who are familiar with your brand or website or social media. The following five methods can make full use of the first party data.

1. It is important to determine which information is accurate

The trouble usually goes like this: marketer has a lot of (potentially useless) information. In order to address this problem, marketer must decide as soon as possible which data to collect, organize and analyze to meet future strategic marketing and business goals.

Before thinking about how to collect first-party data, you may need to start personalized marketing communication channels, such as Email. Collecting consumers' names and their Email addresses is the starting point, and then you can build your first-party dataset from there.

two。 Clean up and structure your data

Cleaned Email lists are good for Email marketers. The same is true for other consumer data (for example, consumer name, phone number, contact address, number of purchases, website visits, e-mail clicks, etc.). More important than cleaning-structuring your data will be a huge boon for marketing, sales, and service teams.

According to the Securities and Exchange Commission, "structured data is standardized data that can be identified and accessed by people and computers." PCMag.com added that the structured data "can be immediately identified in electronic files, such as as a relational database structured by rows (records) and columns (fields)." (PCMag.com is a leader in rigorous scrutiny of the latest technology, helping to make better purchase decisions for sales fees.)

In short, structured data means data that is organized so that marketing and other teams can easily access, understand, and use it.

3. Determine who has access to first-party data

Protecting consumer data is a major responsibility, and usually not everyone in the enterprise can open up this privilege. Managing access to data is not only a privacy issue (think of the GDPR General data Protection regulations), but it is also a smart business practice.

4. Find overlap between first-party data and consumer touchpoints

As we mentioned earlier, first-party data is only part of the data maze, but you can still use it to lay the foundation for a meaningful consumer journey. For example, take your existing email subscribers as an example. When you email them and see how they click on something, you can start using this user behavior information to build their personal portraits. The interactive information of these emails can be used to send personalized content or provide specific product discount information for consumers.

5. Use first-party data to expand your audience

If you are a smart data collector, you may know your audience and their preferences from your data. Although you can send them a 1-to-1 message, such as personalized email, you can also use existing first-party data to expand the target consumer.

For example, you can use the consumer information you collect to create similar audiences on Facebook, which can help you find similar audiences on Facebook. Now, you can run targeted Facebook advertising campaigns to deliver your ads on a larger scale, which is just an example of an application, and you can expand your audience based on first-party data on more multimedia.

The first data is just the beginning of your journey. Once you have established a foundation for providing personalized information, you can start building second-party and third-party data to enhance consumer-business interaction more than ever before.

For more information, please visit http://www.frensworkz.com/, the official website of Yihai Software.

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