As a business owner or marketer, you can’t do without data. And despite the world being incredibly interconnected, with information everywhere, sourcing data isn’t easy.
Sourcing quality data requires massive resource investments. Beyond sourcing data, other problems like processing, storage, analysis, enrichment, etc., befall organizations.
However, quality data can improve business operations and achieve goals; the subsequent problems become worthwhile. Hence, companies need to pay attention to data sourcing. And that starts with the question, “who is a data broker?”
WHAT IS INFORMATION BROKERAGE?
Information brokerage also means data brokerage. Information brokers specialize in extensive data collection, which is subsequently compiled and sorted into sellable formats.
Information brokerage services are needed in both the private and public sectors.
Hence, information brokers can work in-house for a company or as a freelance agency.
Information brokers collect personal information about consumers. They can also collect corporate information that’ll interest B2B companies in many other cases.
The information brokerage data collection process leverages both public and non-public sources.
For example, these brokers check through court records, website cookies, registers, gift card programs, etc. In addition, data brokers scour through anything that collects information.
Many times, the details they know about consumers are too much.
While the field has been around for a while, it continues to seem nascent. Moreover, there are currently no regulations and legislations around the field. Hence, transparency remains a big issue.
The industry grows, generating north of $200 billion yearly revenue. It’s also estimated that about 1.7MB of data is created for each person every second.
For marketers and business owners, this is information worth paying for. In the hands of the right business, brokered data can lead to massive growth.
Data brokers go on an extensive data haul day in, day out. However, it’s possible for their database not to contain all information possible about an individual.
But to a very high degree, data brokers have all the information you may need from a consumer.
WHAT TO EXPECT FROM INFORMATION BROKERAGE SERVICES
In whatever capacity they function, information brokers are primarily responsible for obtaining information quickly. Furthermore, their job entails helping businesses understand the data they need but lack.
Their extensive leverage of research tools and programs gives them exceptional insight that identifies pain points, behaviors, etc. With the tools and expertise at their disposal, the best of information brokers provide valuable insights in minutes.
Beyond just sourcing for data, information brokerage services bundle data orderly. Their arrangement and package of data help you take practical measures quickly.
If you have an in-house information broker, or a long-term partnership with a data brokerage firm, continuous training is another activity to expect.
Due to their unending access to quality data, they are in the right position to reiterate your company’s knowledge of its consumers.
Your business cannot maintain relevance if you don’t know the customers you’re dealing with. These brokers make that happen.
Also, if you’re starting a new company, data from brokers fosters better market understanding.
Buying profiles from data brokers help you quickly identify what market segment to focus on.
Owing to their relevance, information brokers can work in any industry; hospitality, insurance, federal agencies, manufacturing, tech, politics, history, medicine, etc.
So, you shouldn’t expect an individual information broker to be excellent for all industries. When you need their services, you’ll need to find an information broker specialized in your industry.
MAIN TYPES OF INFORMATION BROKERS
While data brokers can work in any industry, they can also serve different purposes. Here are the main roles information brokers serve.
Marketing and Advertising
Data brokers in this role curate a database of personal customer information. Details they collect include; name, age, income, web history, education level, location, interests, etc.
If you need to target customers with product and service ads, the data they provide will be handy.
Fraud Detection
Fraud is commonplace in today’s society. Hence, information brokers work as fraud detectors. Mobile phone operators and banks mainly require their services.
For instance, information brokers verify identities before approving the loan in application to a loan.
Risk Mitigation
Many customers don’t know their capacities regarding money. Risk mitigation information brokers help decipher whether individuals should take high or low-risk loans.
People Searching Websites
Many information brokers create autonomous profile search infrastructures. Such websites provide further details about someone by searching for their name, address, government ID, or email address.
FREQUENTLY ASKED QUESTIONS ON INFORMATION BROKERAGE
● Are data brokers legal?
Technically, data brokers are legal, except in countries with stiff data privacy regulations. Many data brokers try to gather owner-sanctioned data, in addition to public-access information.
● Where do Information brokerage services get data?
Most of the brokers collect data from public records; voters’ information, birth certificates, marriage licenses, etc.
● Can I trust data from information brokers?
Beyond their sales data, data brokers’ business heavily rides on their service integrity. Being a very competitive industry, finding a trusted information broker isn’t difficult.
CONCLUSION
Information brokers are very versed and spend more than enough time researching. A data broker’s work is pertinent to business. Hence, they charge premiums for it. But upon investing, business growth continues.
