Understanding Your Data Sources

Attracting the right customers for your business (say, through a new promotional campaign) is harder than it looks. The ultimate goal, of course, is to maintain every single one of your current customers while gaining a whole slew of new ones, right? Of course, that’s unrealistic; you’ll never bat a perfect game when it comes to sales (although it seems like some people often come close), but how do you aim for the right new people without losing the ones you already have and count on?

Focus on your first party data, which is the information you get about your current customers. Learn what they love about whatever you do, and what they absolutely do not want you to change. Take that with a grain of salt, of course, because people fear change until you thrust it upon them, but make sure you value you your base – and make sure they know it. Second party data is your next best guide. Second party data is information on people who like things similar to your product, and this is valuable because you already know they have an itch that needs scratching. Finding out what these people dislike about their current service is invaluable to you the business owner, because you can exploit it to get them to switch!

Finally, third party data is your random responses from the void. You don’t know anything about these people, or they you, which means they’re the least likely to bite. However, that doesn’t mean it’s impossible, and sometimes these connections are some of your best because they open you up to new markets of people. Make one of these consumers jump from third to first party data and you’ll get a whole new market of second party data to explore!