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Customer Data and privacy, how can you make this work for you?

Third-party, first-party, zero party. Let’s knuckle down on the different types of data and how they can benefit you.

 

Zero Party

This is when consumers have intentionally shared their data with you. This could be through polls, quizzes or interactive social media stories amongst others. The benefits? You get an idea of your consumer’s preferences and insights into their behaviour.

When you can use this: Use this for your product development, or if you’re an e-commerce brand, use it to create personalised campaigns that drive consumers to products they’re likely to buy. Send out a survey, or a quick quiz to capture the data.

First Party

This is data that you’ve collected about your consumers, data that you own. It may have been collected through cookies, your app, a CRM tool or an instore. This is data that consumers have consented to you using. The benefit? You’ve got exclusive insights into how your consumers behave. The downside? There’s no scale to it, this is not data that helps reach new audiences. If you’re looking to expand, having only this data isn’t ideal.

When you can use this: Use this data to deliver targeted campaigns and create brand experiences that are customised to their location, purchase history or interests. It gives you great insights into your customer’s preferences.

Second Party

This is data that has been bought from someone else, reducing the limitations that come with first-party data. It works well if you can collaborate with a company in a relevant industry that you do not compete with. The benefits? It’s better for scaling and acquisition. The downside? Your control over this data is very limited.

When you can use this: You can use this to create targeted advertising campaigns, using these lists to create audiences, so your business can reach new markets and start to scale up.

Third-Party

This is data that is passively collected from websites. This is the digital trail of cookie crumbs that can allow businesses to effectively target people who may be interested in their product or service. This is data that you can use, obtained from sites that aren’t your own.

When you can use this: This is the data that is used in a lot of digital advertising, that information that allows you to create audiences that Google, Facebook or whoever you are advertising with, has gathered – meaning that these advertisements are targeted to people that they know are likely to be interested in your product. It’s great for creating digital campaigns targeted at people that are likely to be interested in your product or are in the market to buy a product similar to yours.

Things to think about:

Consumers as a whole are happy to receive personalised ads, but they also want to make sure that companies are being transparent about how they collect and use their data. Be upfront about how you use their data, and make sure they have consented to it.

 

Interested in learning more about how you can make your data work for you? Get in touch with us, we’re more than happy to chat over a coffee, and work out what’s the best solution for your business!