With identity resolution taking center stage in marketing strategies, second-party data is stepping into the spotlight. As brands seek to recognize and relate to real customers at every point along the path to purchase, sharing first-party data is becoming a strategic necessity for marketers to achieve scale without forfeiting control of their data.
While data sharing has been around for decades, today’s technologies take second-party data to the next level while addressing the safety and security concerns that were initially holding marketers back. Using hashed identifiers, companies can share first-party data without divulging any personally identifiable information (PII). At all times, each data-sharing participant maintains control over their data, ensuring adherence to consumer privacy best practices.
Joining Forces Spurs More Impactful Customer Engagements
Brands are increasingly looking to second-party data as a transparent, trusted and scalable way to amplify their first-party data. In Signal research, nearly 80% of marketers reporting high returns on their data-related investments are leveraging second-party data, and 60% say they will increase their use moving forward.
Essentially, second-party data allows marketers to see the consumer journey through a much larger lens. Marketers who have an identity resolution strategy in place can supplement their data asset with a trusted partner’s relevant and deterministic data and build deep, durable customer profiles at scale. In turn, marketers have a more robust data set from which to glean greater insights and inform unique, personalized brand engagements — a must in today’s competitive race for consumer attention. Plus, sharing anonymized data with trusted partners offers brands a way to monetize their data and gain a new revenue stream.
Realize the Power of Data Sharing
By sharing first-party data in private, secure networks through established partnerships, marketers avoid the risks involved in turning their hard-earned data over to large-scale vendor ecosystems that prohibit marketers from connecting all the dots and gaining a unified customer view. Ultimately, second-party data allows marketers to unify cross-channel identities, drive meaningful 1:1 brand interactions and foster loyalty among a greater group of customers.
Here are three steps for initiating a second-party data strategy for your brand.
1. Review potential data partners.
Consider the possibilities of sharing data with trusted brands, clients or media partners. Initiate discussions around how all partners may benefit.
2. Identify your blind spots.
Look for gaps in your understanding of the customer journey. Seek partnerships to fill in the gaps.
3. Explore cooperative identification.
Consider third-party platforms that provide a safe, secure environment for data sharing. Look for neutral, open platforms that let you keep control of your own data and fully protect PII.