Overview of Parties Involved in Data Collection

When discussing data collection, there are three primary types of parties involved: zero-party, first-party and third-party. To understand the difference between each of these parties, it is important to look at the way they are involved in the data collection process.

Zero Party Data

Zero-party data is data that is provided by the user directly. This can include everything from profile information such as a name, age, gender, or preferences. It can also include information such as purchase history, rewards programs, or other data that is intentionally shared with a business. This type of data is used to help build a profile on the user, allowing businesses to better understand their target market and tailor their services to the user’s needs.

First Party Data

First-party data is the data that is collected directly from the user through interactions with the company, such as web browsing, app usage, and other interactions. This data can include things such as user behaviors, interests, demographics, post-purchase data, etc. This type of data allows businesses to improve their products and services, as well as identify trends that can be used for customer segmentation.

Third Party Data

Third-party data is data that is collected from outside sources, such as advertising networks, data brokers, or market research firms. This data can include things such as customer demographics, tastes, or purchase behaviors. This type of data is used to create targeted advertisements and improve customer segmentation, as well as understand customer preferences better.

Summary

Data collection involves three different parties:

  • Zero-party data is data that is provided by the user directly.
  • First-party data is data collected directly from the user through interactions with the company.
  • Third-party data is data collected from outside sources.

Each of these types of data can be used to help businesses better understand their target markets and tailor their products and services to customer needs.