First-Party and Third-Party Data: Secrets to Food and Beverage Industry Success
Low-quality ingredients can ruin even the best recipe. In the food and beverage industry, this also applies to the marketing data collected about customers.
Increasingly, food and beverage companies are turning to Big Data analysis to understand customer habits and demographics in order to stay ahead of changes in purchasing patterns and tastes. Successfully using the data depends on both its quality and cost.
Who Owns My Customer Data?
When talking data, it’s important to understand the difference between first- and third-party data. According to AdAge, first-party data is what your company directly collects and owns:
First-party data is information collected directly and stored by website publishers, retailers and other types of companies about their site visitors or customers. Because companies with this information have a prior relationship with their customers, they are able to use this first-party data — which may include names, addresses, phone numbers, site-interaction data and information about products purchased — to communicate directly with them. First-party data is what is stored in customer-relationship-management and loyalty-program databases.
Third-party data is collected by companies that do not have a direct relationship with your customers. It is gathered and aggregated by outside data providers or marketers, who then try to sell access to the product. Your company does not own the data and has no real control over its quality or depth.
Is First-Party Data Free?
Being able to collect first-party data gives companies the power to control the quality and format of the data. Although the company does not have to pay for access to the data, there are associated costs related to gathering it, storing it, maintaining CRMs, and analyzing it.
Successfully collecting and creating actionable strategies from the analysis of first-party data requires expertise and a level of technical skill that your company might not have. That’s where partnering with the experts at LMS can help.
Our team is experienced in creating innovative marketing solutions based on the collection and analysis of high-quality data. We can help you find the best solutions to collect and maintain ownership of the data.
LMS can help your food and beverage company stay ahead of changing tastes and provide the personalized service that will keep customers coming back. Contact us today.