If you work in the marketing and advertising worlds, you know how vital data is to your campaign. If you don’t have access to accurate data, then your marketing campaign may never realize its full ROI potential. There are multiple forms of data that will help your marketing engagement and reach, but how can you tell which is the best data mix? This is a complicated question as not all data is created equal. In order to find the right fit for you, let’s take a closer look at two main categories of data: first-party and third-party data.
First-party data is information that comes directly from your own customers. While this data is usually straightforward, it does come with some limitations. The biggest downside to this data is reach. Since this information is coming from current customers, it’s impossible to use it to spread your message to other groups who could potentially be interested in your business. First-party data is especially limiting for ongoing service businesses who work closely with their clients. For example, first-party data would be restrictive for marketing companies that are already engaged with their clients on a regular basis. However, businesses such as these can still use first-party data for a newsletter and insight into their customers, which is still a valuable option worth pursuing. First-party data is the most valuable data you can utilize and most businesses don’t take enough measures to capture it completely.
Another upside to this data is that you can create audience segments and personas based on purchasing habits. It also allows you to exercise complete control over how it’s collected, processed, analyzed, managed, etc. This data completely belongs to you and is a great way to understand your audience, but it tends to fall short when it comes to rapid growth. However, this is where third-party data can fill in the blanks.
Third-party data is defined as information that is collected by a business or entity that doesn’t have a direct relationship with consumers. This data can range in quality as users face the possibility of working with unchecked or out-of-date information. In addition, you may also have limited visibility on where the data is coming from. However, this can easily be avoided if you use a trusted source to obtain your third-party data. That’s why it’s important to ensure that the data seller you’re buying from guarantees its data is checked by multiple sources.
A major benefit of third-party data is that it gives you a broad reach of potential new customers who never interacted with your brand. Quality third-party data is designed to mimic the demographic, behavioral, and contextual information of your customer list. This gives the business the opportunity to connect with new customers and tailor their marketing campaigns to new, untapped target audiences. Another significant advantage is that this data can be used to fill in any missing information on your current first-party customer database. According to an article in Marketing Land, “first-party is the easiest information to use… it gets even better when it gets enriched by second- and third-party data” through appending. This is the process of taking customer data and matching it against a third-party database in order to find missing information or update outdated data. For example, if someone in your database moves, appending will allow you to get the new address, which will increase the productivity of your campaigns. This will strengthen your database with even more information that allows you to analyze your audience and enhance your marketing strategy. Third-party data is generated on specific platforms and is aggregated by data-selling professionals, such as List GIANT, which takes pride in the data that it provides. ListGIANT guarantees its data and only curates the best proprietary data that is verified by multiple sources to ensure that you’re not stuck with bad data. If you want to expand your reach quickly and efficiently, then this data is for you.
Which is Best For You?
When deciding which option is the best fit for you, it’s important to consider a few factors. Are you trying to connect with current customers? Or broaden your reach to new clients? In most cases, a combination of both first- and third-party data would be the best option for business and marketing campaigns. This allows you to look at current customers while also allowing you to expand to potential customers who are in need of your products and services. The combination is often successful because third-party data works incredibly well in conjunction with first-party data.