In my previous blog, I explained data, business intelligence, and market intelligence. This blog is about what first, second and third party data is. It is essential also to have these types of data clear. In addition, I also deal with the excessive focus on online marketing.
Before I start with the definitions, I would like to clarify something. Recently, it has often been about the disappearance of third party data, and people tend to mention it in a sentence with the Cookieless Era. However, this is incorrect because it concerns third-party cookies and not third-party data. So, that’s clear now.
This data is information that an organization collects directly. Think of completed web forms, CRM data and surveys at an event or exhibition stand. In short, it comes directly from your target group and hence the term first-party or, as you could say: first-hand information.
First-party is often seen as the best data to focus on, as this data is generally the most reliable. In addition, this information is free. In addition, you are dependent on data maintenance and the proper completion of matters by your customers and prospects. As soon as you do not carry out maintenance on a dataset for one year, approximately 30% of it will be outdated and therefore no longer correct. Just look at all the LinkedIn messages you see about people switching jobs. Do you update them all neatly in your CRM system?
Another critical limitation of first-party data is that you only build data from (potential) customers who provide information to you. Especially when approaching new target groups, first-party data is not enough.
Logically, this is 2nd hand information or someone else’s first-party data. This form of data can certainly be interesting. For example, you can sell products or services that are complementary to each other so that you can help each other by exchanging first-party data. Given legislation, it is, of course, essential that there is permission from the person or organization concerned.
The same considerations apply here as with first-party data, so the main question is whether you have a partner with whom you can reach an agreement.
Finally, there are also third-party data, which you can use to your advantage. Logically, you are even further away from the consumer or organization in question. This usually concerns data that you purchase from data suppliers, such as Smart Profile. This can involve company information, consumption insights (via Nielsen), and location information. Curious about what data we can offer, look here.
You have less control over the reliability of this data, but it provides the necessary information to bring in new business. Moreover, there are multiple data providers, which means that they are forced to keep the quality high based on use and competition. In addition, information is often validated via various sources, and therefore data collectors or data aggregators are often spoken of in English.
In addition to supplementing new data, data suppliers such as Smart Profile can also help you to automatically update your first and second-party data in, for example, your CRM system. Just think of the various (API) connections available with such systems today. You may even use one yourself. Read more about our API connection here.
In addition to data suppliers that merge data, it is also vital that you integrate the available first, second and third-party data. That way, it has the most value for your organisation. It is crucial to determine which primary source you select or your single version of the truth? As a marketer, also look for a connection with your IT colleagues to view the data infrastructure.
Also, realise that managing the quality of your data is a profession in its own right. I compare it to keeping up with the latest developments in online marketing, such as adjustments to the Google algorithm. Such matters are often outsourced to an online marketing agency. Assistance with data-driven marketing is no different. Keeping data in the CRM system up-to-date is usually not a priority and knowing which sources and market developments are available is difficult to keep track of. Find out how a data supplier can help you take this worry off your hands. Nowadays, you also have pieces of marketing technology that you can use, such as a data management platform (DMP) and a customer data platform (CDP).
As I mentioned in my introduction, it is vital to see data-driven marketing from a broad marketing application. Don’t just view it as an interface with online marketing. Information from sales conversations, telephone conversations/calls and event visits are also relevant to include in your data-driven approach.
In your search for help with data-driven marketing, you will probably also notice that various types of parties use this term and can help you with it. You have IT parties that can help you with the data infrastructure, you have (online) marketing agencies that mainly help with your online data, and some data suppliers provide qualitative data to supplement your data.
In short, you can say that IT is necessary for the structure. Data suppliers mainly take care of the data, and agencies help you with that data.
Of course, these parties offer various additional or overlapping services, but in my opinion, it is essential to distinguish these three elements well.
You will also notice that the various parties explain data-driven or data-driven marketing differently. Often to their advantage, of course. For example, an online marketing agency often talks about insight into your visitors, while an IT service provider mainly refers to implementing data for the entire organisation. Finally, data suppliers will be right about the importance of the quality of the data. In short, try to look at it holistically for your organisation.
In addition to my earlier piece, I hope this blog gives you an even better idea of the various “parties” out there in terms of data. Also, the call to see marketing in the broadest sense and not to focus too much on online. It is the interaction of various channels that is ultimately the strongest. So you will also have to be able to use your data on multiple channels via an integrated approach.
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