Which type of data is more reliable for understanding customer preferences?

Explicit data is more reliable for understanding customer preferences because it is directly provided by the customers themselves. This type of data includes responses from surveys, preferences indicated during account sign-ups, and feedback gathered from direct interactions. Since explicit data reflects customers' self-reported choices and opinions, it tends to offer a clear insight into their wants and needs.

In contrast, implicit data, while valuable, is derived from behaviors and actions rather than direct communication from the customer. It can sometimes lead to assumptions that may not accurately portray true preferences. Social media data, while abundant and potentially insightful, can be influenced by many factors that do not necessarily reflect individual customer preferences in a focused way. Third-party data might provide useful insights but often lacks the specificity and context that comes from direct customer input, making it less reliable for understanding individual preferences.