The 4 Types of User Data
To build better customer experiences, startups can use four types of data: First-Party Data collected from direct interactions with customers, Second-Party Data acquired from trusted partners, Third-Party Data acquired from data aggregators, and Zero-Party Data which customers freely give to personalize offers and experiences.
Chart courtesy of Treasure.
You can use these four data types to inform your strategies and build better customer experiences.
First-Party Data is collected directly from interactions with your customers on your own channels. It's the most valuable data because it's high quality, accurate, and relevant to your business. To ensure consistency across all of your systems, use a centralized platform like a customer data platform.
Second-Party Data is acquired from trusted partners, and you can buy it through second-party data marketplaces. It's similar to first-party data, but it enables you to scale by connecting with new audiences and develop better audience insights.
Third-Party Data is acquired from data aggregators and comes from many different data sources. It's usually purchased for advertising programs, and it helps you reach a broad audience. However, it's essential to do your research and understand where and how the data was collected.
Zero-Party Data is a type of first-party data that a customer intentionally and proactively shares with your brand. It's given freely and allows you to personalize offers, content, and other experiences. Having access to zero-party data is crucial in a time where privacy regulations are increasing, and consumers are becoming more particular about how their data is captured and used.