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Types of Customer Data and What They Mean 

What is the difference between zero party data, first party data, second party data and third party data. How to collect customer data to learn more about your customers and enable intelligent decision making

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    Customer Data is Differentiated by Source

    When we’re talking about sources (or “party”), for customer data, the party being referred to is the source that collects and provides the data. There’s four different “parties” you can collect data from to learn more about your customers and their purchasing habits.

    Snipp Types of data Infographic

    What is Third Party Data?

    What is Third Party Data?

    Third party data is aggregated Data From Various Sources

    Data collected by an entity that doesn’t have a direct relationship with the visitor or consumer. This data generally consists of behavioral or demographic data of large audiences aggregated from many different sources (that aren’t owned) This data is not from your actual customers and is also made available to your competitors.

    How this is data collected?

    Data from third party researchers who collect and aggregate data from different sources like Websites or Social media networks using tools like surveys, interviews and feedback forms and are normally conducted on random sample sizes.

    What is Second Party Data?

    What is Second Party Data?

    Second Party Data is From Partnerships / Purchased Data

    Data collected (bought directly from the source) from another ‘trusted’ organization / partner with aligned interests - essentially that company’s first-party data. This is normally done when the data and insights are mutually beneficial to both businesses.

     

    How this is data collected?

    Purchased Data from another entity - that entities first party data.

    What is First Party Data?

    What is First Party Data?

    First Party Data is From a Brand's Audience

    First party data is data passively collected from customers via a brand’s owned properties - social, point-of-sale, website /app visitors and the information that aggregates into your CRM to use for re-targeting. Customers implicitly provide consent to this type of first-party data collection as they directly engage with a brand.

    How this is data collected?

    Website, App, CRM, Social media Channels, Subscription-based emails, Surveys & Customer feedback

    What is Zero Party Data?

    Zero Party Data is Data That a Customer Proactively Shares

    A term coined by Forrester Research and is defined as "Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize [them]." This data is especially valuable as the customer trusts a brand enough to provide really meaningful data.

     

    How this is data collected?

    Registrations, Opt-in Forms, Loyalty Program Sign ups, Social Interactions, Micro experiences, Quizzes & Polls, Feedback Forms, Customer Communities

    Snipp Tip

    While all these types of data are collected & analyzed for trends and patterns in customer behavior for further segmentation and personalization, first and zero-party data allow for better audience retargeting, forecasting future trends and overall more intelligent decision making.

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