*By Rodrigo Marinho
The amount of data generated and collected daily is surprising. They are a rich source of information that can be used to make decisions, develop business strategies and understand trends. However, to make the most of all this information, it is crucial to understand the difference between data types and how to exploit their potential.
Understanding better what this data is about, we can say that primary data is information collected directly from original sources, not processed by third parties. They are valuable for research and decision making, obtained through interviews, questionnaires, experiments or direct observations, providing personalized and accurate information. They play a crucial role in diverse fields, driving the advancement of knowledge and the development of effective strategies. Tertiary information consists of information collected and processed by third parties, such as internet cookies, which are currently the main source of data used by companies for their marketing and engagement campaigns. It is also important to note that, with its own data, the company collects information directly from customers, with their consent. This is advantageous in many ways, but only if you are also transparent with that data – encouraging data security and privacy.
One of the advantages of primary data is having full control of the collection process. And the tertiary factors are convenience, given that the collection is done by another company. Despite this, this data does not form a basis organized in the best way to serve each business. It's something generic, and worse than that, it's data that wasn't transferred during an exchange between brand and consumer, there's no relationship or any engagement.
Furthermore, this use can present very significant disadvantages such as: variable quality, lack of context, high costs, dependence on external sources, compliance and privacy concerns, limited availability, lack of customization, vulnerability to external changes, difficulties in updating and potential lack of exclusivity, which may discourage its use. However they can still be useful in situations where secondary data are unavailable or impractical to obtain, requiring careful assessment and consideration of alternatives.
It is essential to apply advanced data analysis techniques, such as machine learning and artificial intelligence, to extract meaningful insights from large volumes of information. Being able to access data completely plays a crucial role in understanding and communicating results and enabling a personalized experience. According to Twilio's 2023 Customer Engagement Report, 60% of brands say that investing in digital customer engagement has improved their ability to meet changing customer needs.
This is why companies have invested in solutions that increasingly take advantage of the full quality of available data. This is the key to better business and happier customers.
*Rodrigo Marinho is Regional Sales VP LATAM at Twilio.
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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