Making the first move is never easy. Some just try out a series of conversation openers, taking a hit-or-miss approach. Others look for a way to get introduced through a third-party. Luckily, when it comes to finding a mutually beneficial second-party data relationship, the rules of engagement are now clearly defined, making it much more approachable than ever.
Why second-party data?
Say you’re a B2C company, such as a retailer. Data collected through website visits and in-store transactions can certainly tell you a lot about what your customers want and need, but what if you have questions this data can’t answer, like what adjacent brands they like, or when they’re most likely to be in market for that new product?
Any data that is connected to a brand’s customers is an extremely high-value asset because it is typically inaccessible to other companies and highly desirable information. Providing unique experiences and incremental value to your customers means getting access to this hard-to-get data. Luckily, you don’t have to work in a silo. Someone else has this information, and many times it’s a company you already know.
You could probably come up with a short list of companies you already work with – vendors, existing comarketing partners, or strategic partnerships – whose data could offer critical insights that would help strengthen your competitive advantage.
Maybe it’s a company that operates in the same geographic region or a new one that you want to move into. Maybe it is strong with a demographic your company has had difficulty gaining inroads and exposure with in a positive way. It could be a company that has a lot of CRM overlap, which would enhancing your customer understanding, offering opportunities to improve the brand experience and strengthen loyalty.
Once you’ve identified potential candidates, of course some due diligence is required before you commit to a partnership. For example, closely examining their data governance policies and practices can help evaluate their commitment to responsible and ethical data stewardship. Do they live up to your brand’s standards for trustworthiness and transparency and choice? Both sides should also consider making a third-party safe haven a requirement, making it possible to avoid data being shared directly.
And while it was once a requirement to be on the same technology stack, vastly limiting the potential partner pool, this is luckily no longer a deal-breaker, opening the door to new opportunities previously unexplored.
Fortune often favors the bold
It’s a lot easier to be bold if you have a solid plan. Our Guide to Second-Party Data provides an overview of the steps you can take to approach and assess a second-party data partner, and how they can accelerate your ability to achieve true people-based marketing while maintaining control over your own first-party data. Download this handy new resource today!