The Limitations of Third-Party Data - the future of marketing data

Older techniques within marketing and sales are shifting, especially as regards to data, specifically Third-Party Data. What are the limitations of these older ways of data collection like Third-Party Data? What needs to change??

We’ll take you through the current approach to collecting marketing data and then help you go deeper into the changes coming through a series of great articles.

What is Third-Party Data??

Third-Party Data is the information collected by companies that do not have a relationship with customers, visitors or users directly.

Third-Party Data is information collected away from the data a company can generate themselves from purchases, email sign ups, visits or the website etc. When businesses want more information about their audience than they already have, they will go to a third-party source for more.?

Third-Party Data is collected from a data based company and is available for businesses for a fee. This amount of data has a bigger scope than collected from in-house. It is also different from First-Party and Second-Party Data because it is research that is taken from a random sample size.?

Anybody willing to fill out a form is used to formulate the data. Some of it may not be useful for your business.?

With the change in privacy laws and protection of user information, Third-Party Data is a data collection method that businesses are starting to see as limited and produced in an unpersonalised (and maybe unethical) way. Let’s explore why:????

1. They collect information (often) without the knowledge of the consumer?
2. They give this information to multiple businesses (including competitors)?
3. The data is a large quantity that is not specific or niche (making some of it useless)?
4. The accuracy of the information is not high, nor is it tailored to what a business might need?

What are the privacy limitations of Third-Party Data? Why does it need to change??

Third-Party Data is limited. It is conflicted by privacy laws. There is often no transparency with this type of data collection, and it is even unknown as to whether consent (or ethical consent) was given to obtain the data.?

Within this collection of Third-Party Data it can often be low-quality as it is collected from a broader scope of people and it might not align to the First-Party Data you already have within your business and systems.?

It is not only limited because it is from the masses, it is also not as authentic as obtaining your own data. This can make your marketing campaigns, customer service and sales techniques untailored to your actual ideal clients or customers.?

Plus your competitors can also have access to the same data. Not making it unique to your business.?

This needs to change because for multiple reasons:?

1. Customers can often feel like a robot is selling to them?
2. Customers feel like their experiences are not personalized or special?
3. The wrong assumptions can be made about your audience?
4. Privacy laws are forever changing?

There are better ways to collect data than through a Third-Party. We are here to guide you on that journey.?

Want to learn what is next instead of Third-Party Data and why you and your business needs to adapt to changes happening with Third-Party Data? Check out the article "The Limitations of Third-Party Data - the future of marketing data" in full:

https://www.upflowy.com/blog/the-limitations-of-third-party-data-the-future-of-marketing-data