Second-party data is collected directly from another organization’s customers. Organizations tend to acquire second-party data by forming mutually beneficial relationships with other organizations to utilize each other’s first-party data. Because this data may not represent the organization’s customer base, it may be less accurate and relevant to the organization’s needs and intended uses. However, analyzing the data collected from a similar audience, or from customers’ interactions with a different organization can help organizations fill gaps in their data strategies.
Since Second-Party data is by definition shared across organizations, it may be subject to privacy and data sharing regulations and laws and may require specific permissions and controls to collect and share.