Putting Second-Party Data To Work For You

The term second party data could be a little confusing! You might have come across terms like first data, but then second data refers to those kinds of data that can be procured or come to your aid through an external entity. 

Putting it in simple terms, second party data refers to data that you do not get directly, but are obtained through a third party or an external source. 

Such kind of external entity or source works to ensure that you get data that are exclusive to your requirement but you or your company do not take ownership of this data.

A classic example of second party data can be explained as data obtained by your direct relationship with other business entities. 

To explain in simple terms, imagine you have dropped your gift coupon or voucher in a restaurant and every client walking into this restaurant fills in the data.

Now these customers are direct clients of restaurant whereas inputs provided by these clients through this gift voucher can help you. 

You are now in hold of huge amount of client database whereas this data was not collected with your direct intervention or efforts.

How To Collect This Second Party Data?
There are several models that are now available in market where in you can easily obtain second party data. Few such details are as mentioned below:

Creating a Data Management Platform: This is an expensive and preferred method by entities that can help with second party data collection. 

There is a set of master cookies that makes this data crunching possible. Yet another method of second party data collection is by using it yourself or using master cookies that lets you flexible and powerful data collection.

In most cases, second party data is obtained through any of the following method:

· activity of a user in a website

· usage of mobile app

· usage of social media

· participation in customer surveys

How Second Party Data Helps?

Second party data can be immensely useful in varied ways. While using second-party data, you gain better access and control over the kind of data currently available with you. 

This kind of data is better than first part data and you also get to understand how to better use second party data in a better fashion. This

Increase and flexibility in scale of your data: Imagine a situation where you have purchased first hand data, but then your audience is limited. In this case, amount spend on this first hand data does not add value.

 In such cases you can think about scrutinising this first hand data and then using it as second party data to gain better advantage for your business.

Reach out to varied and new audience: With the help of second party data, you are given a chance to explore market interests and customer preferences. 

With this input in hand, you are now given a chance to predict the future taste and customer behaviour pattern. This shall help you with understanding and marketing your product better.