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Collecting and leveraging consumer data helps you better understand and connect with your customers.
Each consumer data type is valuable and plays an important role in helping you build and deliver personalized campaigns that generate ROI.
But collecting data isn’t just about marketing—it’s also about privacy.
According to XM Institute, 53% of consumers are extremely or very concerned about the privacy of their personal information.
As a result, it’s essential to collect consumer data ethically and with purpose.
4 Consumer Data Types to Collect for Your Targeting Strategy
Consumer data types that you can collect to enhance your targeting include:
- First-party data
- Second-party data
- Third-party data
- Zero-Party Data
In order to be successful with your targeting and mindful of privacy regulations, understanding the types of consumer data and how to ethically collect and leverage them is vital.
First-Party Data
First-party data is information you collects directly from your customers through your owned channels, like your website, app, and CRM.
Because you’re getting it firsthand, this data is very reliable and compliant with privacy concerns, making it important for personalization, audience segmentation, and building long-term customer relationships.
For instance, I was recently shopping online for new shoes. After browsing a few specific styles on the Converse website, I received emails showing me similar shoes based on my engagement. I was also sent emails telling me about a sale on the shoes I was interested in.
As a customer, the personalized outreach caught my attention and ultimately drove me to buy the shoes! This is a great example of how first-party data was leveraged by the brand to acknowledge my unique interests and entice me to buy.
The Importance of First-Party Data
First party data is an essential component of an effective data strategy, with 78% of businesses considering it the most reliable source for gaining a deeper understanding of their customers.
Larisa Bedgood, Head of Marketing at PGM Solutions adds, “My best advice for your data strategy is to prioritize first-party data. Collect it ethically and leverage it strategically. Especially as privacy regulations continue to evolve, investing in your first-party puts you at an advantage since it guarantees your ability to deliver personalized, relevant messages regardless of what’s happening in the privacy landscape.”
Second-Party Data
Second-party data is someone else’s first-party data that you acquire directly from the source, rather than through a data marketplace or aggregator.
It typically comes from a trusted partner who collects data from their own audience and shares it with you, often through a direct relationship or data-sharing agreement.
This data can include information like website activity, purchase history, or demographic details, and is valued for its reliability and relevance because it’s collected firsthand by the partner organization.
For example, I’m a frequent flyer with my favorite airline, and they know a lot about my travel habits — like which cities I visit most often and how often I book trips.
Recently, I started getting personalized offers from a hotel chain.
The airline has a partnership with the hotel brand and shared my travel preferences with them. The hotel didn’t get that information directly from me, but they got it straight from the airline — which I do use and trust.
That’s how second party data is gathered: data collected by one company and shared with another through a trusted partnership.
The Importance of Second-Party Data
According to WARC, 60% of marketers planned to increase their use of second-party data, a clear indication they are increasingly aware of the value of sharing such data. This consumer data type enables you to leverage high-quality, relevant insights through trusted partners to improve personalization and acquire new customers.
Third-Party Data
Third-party data is information collected by an outside your business that has no direct relationship with the consumer.
This data is typically gathered from various sources, aggregated, and then sold or shared with businesses to help them better understand and target audiences beyond their own customer base.
According to MarTech, 61% of marketers are still relying on third-party data.
Third-party consumer data includes insights like demographics, interests, behaviors, and indicators of purchase intent.
For example, a fitness apparel brand can purchase third-party data from a data provider to target consumers interested in health and wellness.
Through third-party data insights, the fitness apparel brand can reach people who frequently visit fitness blogs, watch workout videos, and shop for athletic gear across channels.
The Importance of Third-Party Data
Kym Vance, Head of Business Development at PGM Solutions states, “Third-party data continues to play an important role in helping you scale and expand your reach. It’s power comes from connecting you with audiences that share interests, behaviors, and characteristics of your ideal customers.”
Zero-Party Data
Zero-party data is info that your customers intentionally and proactively share with you.
Unlike first-party data, which is collected through observed behaviors and interactions, zero-party data comes directly from your customers’ explicit input on things like their preferences and intentions.
Because this data is shared voluntarily and transparently, it’s a valuable asset to build trust and deliver personalized experiences.
Examples of zero-party data include customer preference surveys and results from interactive quizzes.
For instance, a skincare brand might collect zero-party data by asking customers to take a quiz to help them determine their skin type or skincare goals before recommending products. The details customers share in that quiz are zero-party data insights since it is information intentionally shared by the customer with the brand to help improve their experience.
The Importance of Zero-Party Data
According to CDP Institute, 83% of consumers are willing to share their data to create a more personalized experience.
Todd Dziedzic, Head of Data Science at PGM Solutions adds, “Zero-party data collection prioritizes transparency, consent, and active engagement. When you use it thoughtfully, you not only improve personalization, but deepen customer trust and loyalty.”
3 Industry Examples of Consumer Data in Action
Let’s take a look practically at different types of industry examples and see how each data type can have a different impact on the industry.
1. Consumer Data for the Home Improvement Industry
First-party data for home improvement brands
For home improvement brands, first-party data can be collected from lead forms on your website or app where homeowners request estimates for plumbing, HVAC repair, landscaping, or remodeling services. They can also collect valuable information from completed service records, appointment bookings, and follow-up surveys about customer satisfaction and service quality.
Second-party data for Home Improvement Brands
This typically comes from trusted partners in related industries, such as real estate agencies, property management firms, or mortgage brokers. For example, a real estate partner might share their client list of recent homebuyers who are likely to need home improvement, HVAC installation, or landscaping services. These partnerships give you access to fresh, relevant audiences without the generality of third-party data.
Third-Party Data for Home Improvement Brands
Aggregated homeowner lists purchased from data vendors or brokers fall into this category. These lists often include demographics like home value, property type, and location, as well as behavioral indicators such as recent home improvements or likelihood to purchase specific services.
Zero-Party Data for Home Improvement Brands
A homeowner might complete a quiz on your website about their preferred home styles, desired renovation timelines, or budget ranges for services. Or they might register for a maintenance reminder program, indicating which services they’re interested in scheduling proactively. This voluntarily shared data enables the home improvement brand to be proactive with their outreach and deliver relevant recommendations and personalized promotions that match their customers needs.
2. Consumer Data for the Retail Industry
First-party Data for Retailers
In retail, first-party data can come from loyalty programs where customers sign up to earn rewards, receive personalized offers, and track their purchases. This data captures purchase histories, preferences, and frequency of visits, allowing retailers to create targeted promotions, personalized product recommendations, and exclusive deals that drive repeat business and brand loyalty.
Second-Party Data for Retailers
Retailers often partner with shopping apps, payment platforms, or complementary brands to share customer insights. These partnerships expand your reach to like-minded consumers who have already shown interest in similar products or categories, but who may not yet be familiar with your brand.
Third-Party Data for Retailers
Third-party data in retail usually involves purchasing demographic and behavioral audience segments. These segments might include consumers categorized by income level, lifestyle, or recent purchase behaviors. This data helps retailers run broader awareness campaigns or launch new products by targeting potential customers beyond their existing database.
Zero-Party Data for Retailers
Shoppers might fill out style preference surveys, create wish lists, or select preferred brands and categories in a retailer’s app. This helps retailers provide relevant product suggestions, personalized offers, and content that resonates with each customer’s unique tastes and needs.
3. Consumer Data for the Automotive Industry
First-Party Data for Automotive Brands
In the automotive sector, first-party data can include information collected from test-drive signups, service appointment bookings, and dealership visits. This data captures insights about prospective buyers’ vehicle preferences, trade-in interests, and service history. Additionally, data from vehicle financing applications and customer loyalty programs help dealerships and manufacturers tailor follow-up communications, personalized offers, and maintenance reminders to improve customer retention and upsell opportunities.
Second-Party Data for Automotive Brands
Automotive brands often partner with auto magazines, online automotive communities, and vehicle review platforms to access audiences. This data is valuable for reaching highly engaged consumers who are actively researching vehicles, helping brands refine targeting for new model launches or special promotions.
Third-Party Data for Automotive Brands
Third-party data in automotive involves purchasing high-income or affluent consumer lists, which are more likely to afford premium vehicles or luxury upgrades. These lists may also include lifestyle and behavioral data, such as interests in outdoor activities or technology, which align with certain vehicle types. These segments help automotive brands broaden their reach to new, potentially high-value prospects beyond their immediate customer base.
Zero-Party Data for Automotive Brands
Prospective buyers might complete an online configurator to customize their ideal vehicle’s color, trim, and features, or indicate whether they prefer leasing over buying. Customers may also sign up for alerts about new models, eco-friendly vehicles, or special promotions. Because this information is shared intentionally, it enables automotive brands to create highly targeted marketing messages and deliver precisely the information customers want during their car-buying journey.
Ethical Collection of Consumer Data
Collecting and using consumer data comes with a responsibility to respect privacy and build trust.
Ethical data practices start with being transparent with the customer. This means letting consumers know what data you’re collecting, how it will be used, and giving them clear choices to opt in or out.
Regardless of the consumer data type, it’s important to be compliant with privacy laws like GDPR, CCPA, and other regulations, so you are safeguarding sensitive information against misuse or unauthorized sharing.
Todd Dziedzic, Head of Data Science at PGM shares, “Collecting data ethically is really about respect. It’s asking: Do we actually need this info, and will it help us serve people better? When we focus on using data to improve the customer experience instead of just collecting it for the sake of it, we build real trust—and that’s what keeps customers coming back to you.”
Final Thoughts
Consumer data is a powerful asset for your targeting, with each type offering valuable insights for your marketing. Collect it ethically and use it intelligently to reach your customers with information on the things they want and need. Ready to upgrade your data strategy and enhance your targeting? We can help.
