Welcome to the World of Third Party Data for CRM!
With the ever-increasing competition in the market, businesses are continuously searching for innovative ways to build and maintain relationships with their customers. Customer relationship management (CRM) has become the norm in this regard, and several companies worldwide are leveraging the power of CRM to increase customer loyalty and retention. This is where third party data for CRM comes in.
Third party data provides businesses with additional information about their customers that they wouldn’t get from their internal CRM data. This information includes demographic data, interests, purchase history and behavior, and lifestyle data. All of this can help companies enhance their marketing campaigns, tailor their products and services, and ultimately make more informed business decisions.
What is Third Party Data for CRM?
Third party data for CRM is customer information obtained from external sources, such as data brokers, which companies use to augment their internal CRM data. Companies purchase this data to supplement their database and gain a more comprehensive understanding of their customers.
The sources of third party data for CRM include credit bureaus, social media platforms, government agencies, and other database providers. These sources collect data on individuals, which companies then purchase to improve their customer database.
The Benefits of Third Party Data for CRM
Third party data can improve a company’s CRM strategy in several ways. Here are a few significant benefits:
1. Increased Sales
By having a more detailed understanding of their customers’ behavior, interests, and purchasing habits, companies can personalize their marketing campaigns and promotions. This leads to better engagement with the target audience, resulting in increased sales and revenue.
2. Better Customer Retention
Customer retention is critical in today’s competitive market, and third party data helps significantly in this regard. By understanding the customers’ preferences, companies can provide them with more personalized products and services, which ultimately leads to better customer satisfaction and retention.
3. Competitive Advantage
Companies that use third party data for CRM have a competitive advantage over their counterparts. They have access to more information about their customers than their competitors, which means they can tailor their products and services better, resulting in a better customer experience.
The Drawbacks of Third Party Data for CRM
While there are numerous benefits of using third party data for CRM, there are also some drawbacks. Here are a few:
1. Cost
The cost of purchasing third party data for CRM can be expensive, especially for small businesses with limited budgets. The more third party data you purchase, the higher the cost, which may not be feasible for smaller businesses.
2. Data Privacy Concerns
Third party data is collected from sources that may not have obtained consent from individuals to collect and share their information. This raises concerns about data privacy and security breaches. Therefore, companies need to be cautious when using third party data for CRM.
3. Data Accuracy
Third party data may not always be accurate. The data may be outdated or incomplete, which can lead to inconsistencies in the CRM strategy. Consequently, companies should ensure that they verify the accuracy of the data before using it.
The Complete Table of Third Party Data Providers for CRM
| Third Party Data Providers | Data Offered | Pricing | Features |
|---|---|---|---|
| Acxiom | Demographic Data, Interests, Purchase History, and Behavior | Custom Pricing | Data Integration, Data Cleansing, and Data Enhancement |
| Experian | Demographic Data, Credit Information, and Behavioral Data | Custom Pricing | Data Management, Data Analysis, and Data Enhancement |
| Oracle Data Cloud | Consumer and Business Data, Interests, and Behaviors | Custom Pricing | Data Integration, Data Activation, and Data Enrichment |
| Infutor | Identity, Demographic, and Lifestyle Data | Custom Pricing | Data Enhancement, Data Cleansing, and Data Integration |
The Top FAQs on Third Party Data for CRM
1. What is Third Party Data for CRM?
Third party data is customer information obtained from external sources, such as data brokers, which companies use to augment their internal CRM data. Companies purchase this data to supplement their database and gain a more comprehensive understanding of their customers.
2. What are the benefits of using third party data for CRM?
Third party data can help companies personalize their marketing campaigns, improve customer satisfaction and retention, and gain a competitive advantage over their competitors.
3. What are the drawbacks of using third party data for CRM?
The cost of purchasing third party data for CRM can be expensive, data privacy concerns, and the data may not always be accurate.
4. How much does third party data for CRM cost?
The cost of third party data for CRM varies according to the provider and the type of data purchased. Companies should determine their budget and purchase the data accordingly.
5. How can companies ensure the accuracy of third party data for CRM?
Companies should verify the accuracy of the data before using it. They can use data cleaning and matching tools to ensure that the data is up-to-date and consistent with their internal CRM data.
6. What data is offered by third-party data providers for CRM?
Third-party data providers offer demographic data, interests, purchase history and behavior, credit information, and many other forms of data that can help companies augment their internal CRM data.
7. Is third party data legal to use for CRM?
Yes, third party data is legal to use for CRM, as long as companies ensure that they abide by the data protection laws and regulations in their respective countries and industries.
8. How can companies protect the privacy of their customers when using third party data for CRM?
Companies can ensure that they only obtain third party data from reputable providers and verify that the data has been collected with the consent of the individuals. Additionally, companies should prioritize the protection of their customers’ personal data and ensure that their internal systems are secure.
9. How can third party data for CRM be integrated with a company’s CRM system?
Companies can integrate third party data for CRM using various data integration tools and software. These tools map the third party data to the internal CRM data, creating a comprehensive customer database.
10. Can small businesses use third party data for CRM?
Yes, small businesses can use third party data for CRM. However, they should ensure that they have a sufficient budget to purchase the data, and that they abide by the data protection laws and regulations in their respective countries and industries.
11. How does third party data affect customer experience?
Third party data can significantly improve customer experience by providing companies with more information about their customers, enabling them to personalize their products and services and build better relationships with their customers.
12. What is the future of third party data for CRM?
The future of third party data for CRM is promising. With the continuous development of technology and the availability of more data sources, companies can expect to gain more insights into their customers’ behavior and preferences.
13. What advice would you give to companies looking to use third party data for CRM?
Companies looking to use third party data for CRM should ensure that they purchase the data from reputable providers, that the data is accurate, and that they abide by the data protection laws and regulations in their respective countries and industries. Additionally, companies should prioritize the protection of their customers’ personal data and ensure that their internal systems are secure.
Conclusion: Take Action to Enhance Your CRM Strategy
In conclusion, third party data can significantly enhance a company’s CRM strategy by providing a more comprehensive understanding of their customers. While there are certainly drawbacks to using third party data, the benefits outweigh the risks, and companies can expect to see an increase in sales, customer retention, and competitive advantage by using it.
Therefore, we highly recommend that companies looking to enhance their CRM strategy leverage the power of third party data. By doing so, they can take their business to the next level and reach new heights of success.
Closing Disclaimer: Protecting Your Data and Privacy is Our Priority
At [Company Name], we take the protection of our customers’ data and privacy very seriously. We ensure that all third party data used in our CRM strategy is collected and shared in compliance with all applicable data protection laws and regulations.
We believe that customers have the right to know how their data is being used, and we are committed to being transparent about our data sources and usage. Therefore, we encourage our customers to reach out to us with any questions or concerns they may have regarding their data privacy and security.