In digital marketing, “second-party data” refers to information that has been gathered by one organisation and then given to another. Typically, this information is gathered from customers directly through programmes like loyalty schemes, surveys, and website analytics.
The business that obtains the data directly from its clients is referred to in this context as the first party. The second party is an additional company with which the first party does business and has the right to utilise the information for its marketing initiatives.
For instance, a clothes company might compile information on the buying habits and preferences of its customers. The retailer may then give this information to a complementing company, like a shoe store, who could use it to develop customer-specific marketing efforts.
By giving businesses more information about the tastes and behaviour of their customers, the usage of second-party data can help businesses better their marketing initiatives. Also, it can assist organisations in reaching new audiences that they might not otherwise have access to.