How is data collected and why is it so important?

Over the past few decades, data has changed many forms. And, the way we gather it has also changed. In the past, information has been collected mainly through the reams of paper. Physical questionnaires and surveys we used to find wanted data. First, people filled in the paperwork; then, the data was manually added into the analysis database. This took time and energy. With the rise of the internet, data has become more digitalized. We use existing technology to gather data from people both on an individual and on a collective level.

Two types of data can be collected: first-party data and third-party data.

1. First-party data is the type of data you collect directly from the source. Companies use this to gather data from their active customers instantly. But they also collect data from people that visit their site and even their followers on social media.
This is the best type of data collecting, partly because you collect if from people you interact with the most. This makes data collecting reliable at making future forecasts. Not only that, but to create a more personalized experience for your audience. Data collecting here works on a straightforward method. It asks for your permission for website cookies. The first-party cookies are linked to a CRM (Customer Relationship Management) system. The cookie then gathers actions and behaviors from your visitors.

2. Third-party data, on the other hand, is data collected from one company and then sold to another. This is strictly for marketing purposes. The companies that indirectly get your data use it to establish effective branding and to retarget strategies. Through surveys, feedback and interviews, gather broad information about users worldwide. There is also another way to gather third-party data, and that is with third-party cookies. These allow companies to track a user’s behavior. Then that collected data is stored on platforms such as Data Management Platform (DMP). Then, based on everything that has been collected, products and goods are attributed to selected groups. Companies place individuals in groups based on their demographic, interest, or behavior and then sell their products. This is known as customer segmentation.

Why is it essential to collect data?

There are many benefits of digitally collecting data. As the digital market grows, it is essential to know how to handle enormous data. In brief, data is the key to marketing. Without knowing how to use it, you will never reach your target audience. When you gather information, you store it and analyze your potential customers with it. With a little effort, you can create an entire database of your audience. It helps you reach your target audience on a larger scale. It is a much faster way, and it generates better results. You can see what your customers like, spend money on and even find their interests. Ultimately, your main goal when collecting data is to make their whole experience better.

How to collect data?

When you gather information about your users, make sure to do it the right way. You don’t want to intrude on their habits and intimacies. Before you collect their data, make sure you first ask for their permission. You can even offer them something in the exchange of data. For example, when asking for their email address, offer them discounts and coupons they can use after they’ve signed up.

Before you start collecting data:

1. Think about the method.
2. Think about the type of information you’re trying to get.
3. Keep a set timeframe in your mind.

Some data is better if it is collected in a short period of time, and some aren’t.

You also have to keep track of the progress. See whether the data tracking is going in the desired direction. In addition to that, make sure to update your plan regularly. You might have to change some terms and conditions.

Many successful companies use systems that are based on online data tracking. They place pixels on their site; they use marketing analytics, social media monitoring, and even use subscriptions as a way to track personal data.

Data tracking doesn’t have to be directed for your customers only. You can use data tracking as a way to improve your own business. You can see whether your business is doing well or not. Not only that but when you gather data, you can see whether you have an opportunity to grow more. You can use location tracking data to see where your users are concentrated the most. Thus, giving you a chance to place your store there and possibly expanding your business.

Overall, data collection plays a massive role in one’s marketing strategy. Without data stores, businesses would drop almost in the dark using antiquated techniques to make their judgments. Alternatively, data accumulation enables them to linger on top of trends, present solutions to difficulties, plus examine novel insights to a significant result.

References:

https://blog.hubspot.com/service/first-party-data
https://medium.com/@Progressly/the-4-key-advantages-of-digital-data-collection-c839a89f168d
https://retargeter.com/blog/difference-first-second-third-party-data-use/
https://signal.co/resources/first-party-data/
https://www.infosum.com/key-industry-topics/1st-party-2nd-party-3rd-party-data
https://impact-evaluation.net/2014/11/18/digital-data-gathering-for-monitoring-and-evaluation/
https://innovativeadagency.com/blog/importance-data-collection/