Paul Hickey, our Director of Digital Solutions recently took part in a Q&A for Lonely Marketer talking all things digital data with Managing Director, Nelly Berova. Read on for the conversation highlights.
Data strategy: what are the three key types of data?
Nelly Berova: First up, in the context of our discussion on data strategy, can you summarise the different types of data available?
Paul Hickey: There are three types of data available: first party, second party and third party data. First party data refers to a company's own CRM database; the information that the business knows about their own contacts, with the permissions in place to contact those individuals. Second party data is the same as first party data in that permission has been granted from the individual to make contact; the difference being that this type of data indicates potential use by another company - in this way, a user can understand how their data has been used or has been gained for use by that particular business. Third party data is data belonging to individuals who have given their permission to be contacted, but who do not necessarily have a relationship with the particular business who has acquired their data.
Offline data vs online data
NB: Which is the superior data type, offline or online?
PH: There are of course many different data sources out there and there is often a big question mark around which is better: offline or online data, with different data of course being suited to different uses. At TwentyCi, offline data is our core. We have a breakdown of over 30 million consumer properties within the UK market of which our data tells us a great deal, including but not limited to: the characteristics of the building, the nature of ownership, the demographic make-up of those who live there. This factual information provides us with complete confidence when working with brands. Online data gatherers typically focus more on the understanding of an individual’s intent, which while in theory can be a key moment where conversion is possible, can also potentially refer to fleeting sentiment alone. The best way of using data both offline and online is to combine the approaches together to give you the best opportunity to understand the complete picture.
What are the GDPR implications for using third party data?
NB: How does the legislation of 25 May 2018 change the way we use data?
PH: GDPR has made a significant change to the market place in the way that data is being used. Data permissions must now be obtained under opt-in consent or under legitimate interest, data controls which are much more stringent than they have been before but which signify a positive step to build consumer trust and to provide control. We use legitimate interest as a justification of using data within our platform. This is easier to explain from a user point of view; ultimately the ROI that we have achieved from working with a number of clients has made a positive difference for that given marketing programme. For example, if you are moving from a 2 bedroom flat to a 3 bedroom house, you’re in the market for a bed, you’re in the market potentially for a sofa, for electrical items, potential insurance, and often a mortgage. On this basis people are open to being contacted to understand the nature and the opportunities in the market place. This is a positive way that data itself and data permissions are being used in the market now. Gone are the days of a 'scatter gun' approach, of simply hoping that something sticks.
Contact us today to find out how we can help your business to better understand and reach existing and prospective customers at genuine moments of peak propensity to purchase.