What is the Definition of Primary and Secondary Data in a Business and Their Functions?
Collecting your business customer data is very important for your business’ development. However, did you know that the data itself is divided into two types? Although different, primary data and secondary data are very important and needed so that you can identify your target customers well. So what is the definition of primary and secondary data present in customer data? To understand both well, AdIns will outline the information below.
What is the Definition of Primary and Secondary Data?
These two terms are generally used in the field of research, such as thesis and journal writing, where the data used is obtained from the field or from literacy books. However, the use of primary and secondary data is not limited to research, but can also be used to define customer data that you have obtained. Therefore, the definition of primary and secondary data will be explained below.
Primary data is data obtained directly from customers through questionnaires, surveys, interviews, and observations. Primary data in general is data that has not been stored in the company database. Collecting primary data will help you in the following examples of circumstances.
- New product release.
- To do a wave test.
- To find out feedback from products and services that have been provided.
- See whether the products offered include the products that customers need or not.
- Finding out the capacity and willingness of customers to buy the products offered.
From the explanation above, we understand that primary data is useful as a basis for consideration in decision making. With data directly obtained from customers, the quality of products and services can be improved and improved for the better.
Primary data collection is important to continue to do, so that your business can continue to advance and develop to present new products and services with better quality. However, collecting primary customer data takes a long time, especially when you use the observation method.
Secondary data is data that is already available and organized according to certain settings to make it easier to find when you need it. Data that includes secondary data are previous business reports, company analysis data, and data collected by trade organizations or other organizations. The use of secondary data is useful in some examples of circumstances such as the following.
- To conduct company analysis related to sales and production.
- Performing comparisons on several aspects of the company’s operations.
- Predict the risks that will occur when business trends change.
Generally, secondary data is not accurate enough because the data is not obtained directly from the customers. However, in company-related analysis, secondary data is useful for assessing the current state of affairs to determine next steps. Collecting secondary data does not take as long as primary data.
Secondary data is easy to obtain and relatively inexpensive because the resulting data is data that has been processed and analyzed by an institution or organization, even from a company. Examples of internal sources of secondary data are business balance sheets, income statements, inventory records and sales projections.
In finding out what customers want or in profiling potential customers, the role of primary and secondary data is very important. If you have difficulty processing existing data, AdIns has the answers you need. To make the profile of potential customers clear, you can use the PROFIND service.
Once you know the definition of primary and secondary data, you will understand why this service is very important for the sustainability of your business. Easier verification process, alternative data retrieval to reach untapped markets and view customer profile dashboards can be done directly with this service from AdIns. Visit AdIns’ website immediately to find the complete information about the demo of this service in order for you to understand more about how it works!