Set An Every-Party Customer Data Strategy

Data-driven businesses are the most successful, at any scale.

In today's business landscape, the success of enterprises is increasingly tied to their ability to harness the potential of first-party data. Large retailers, among others, have started to leverage their wealth of customer data to create new revenue streams through the establishment of media networks.

Taking a quick step back, the first-party data strategy should be encapsulated within a global customer data strategy. For organizations lacking access to first-party data, they should, in the near term, look for alternatives accessible in second and third-party sources. All while deploying people, technology, and processes to address the first-party data gap(s).

Exploring Customer Data Types

A quick look into the customer data types to gain a better understanding of their significance in building data-driven businesses.

Zero-Party Data

Zero-party data is a subset of first-party data provided directly by users. It is the most valuable type of data, contingent upon earning trust from visitors. However, there's a caveat—visitors may provide inaccurate information if trust is not established.

First-Party Data

The goldmine of data, first-party data is collected directly by a brand. Its value is maximized when trust is built, and consent is obtained to use the data in compliance with privacy regulations.

Second-Party Data

This type involves first-party data obtained from another brand or partner, with clear knowledge of who collected the data. Incorporating second-party data is an excellent option for expanding data intelligence.

Third-Party Data

Data collected from unspecified sources and purchased, third-party data has its caveats. While it may have future value for prospecting and filling gaps in existing data, caution is advised due to unclear sources. Research indicates that a baseline with random values might outperform third-party data.

Implement a Robust Every-Party Customer Data Strategy

🔑 In the era of data-driven businesses, the significance of first-party data cannot be overstated. By understanding the nuances of various data types and implementing a robust global customer data strategy, organizations can position themselves for success in an increasingly competitive landscape.