Page 12 - Engage -- no.12 -- Spring 2018

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Spring 2018
DATA
THE DATA LANDSCAPE:
FIRST-, SECOND-, AND THIRD-PARTY DATA
d ata-driven marketing is a prevalent buzzword in every marketer’s life,
and no doubt you are among the many marketers feeling the pressure to make the most out of your data. According to CMO.com, more than half of marketers agree that “a demand to deliver more relevant communications and be more ‘customer-centric’” is among the most important factors driving their investment in data-driven marketing.
With this intense demand for data, it’s critical to know what is available. While
you might be doing a smashing job when it comes to creating customer-centric content, personalizing email communications, or using split testing to create better subject lines or offers, adding the benefit of the right data to the equation can raise the bar and create even higher response rates, ROI, and engagement.
Let’s take a look at the three different data types available.
1 ST-PARTY DATA
This is your data. It’s your in-house
databases along with any other related customer data that your company collects. Think transactions, your mobile app and website, in-store beacons, contact center, CRM system, surveys, behavior and purchase history, customer service calls, emails, click-throughs from email marketing campaigns, and content downloads—all this is first-party data.
The biggest value of first-party data (besides the price tag: free), is that it provides you with absolute and accurate information about the people who are currently converting, and it gives you the opportunity to mine additional information from it. Using data analytics, models can be built to help you identify the characteristics of your most loyal customers, allowing you the opportunity to target prospects with these same indicators.
You can also use analytics to compare groups, such as buyers vs. nonbuyers, to understand what makes your purchasers
unique. With this type of detailed insight, you can identify the best prospects and create extremely accurate and relevant customer journeys that are tailored to those most likely to convert.
First-party data has high relevancy and transparency, but it can have limited reach and scalability.
2
ND-PARTY DATA
Think of second-party data as
data that users are giving not to you directly, but to other companies that you may have a relationship with. It is data that you obtain through direct relationships with outside sources or directly from other businesses. This type of data is essentially another company’s first-party data that is shared with you.
How might we receive and use second-party data? Consider co-oping with businesses or using the services of second- party data aggregators. Many noncompetitive, complementary businesses working in similar