Zero Party Data
Digital marketing as we have known it came to an end last year. Apple’s change to data privacy protection in 2021 compounded with Google deprecating Chrome third party cookies in the soon has killed a key source of customers and revenue for e-commerce. The loss of third party data has brought about zero party marketing.
What is Zero Party Data?
This hot, new marketing buzzword was conceived and defined by Forrester Research as:
"Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize [them].”
Zero data marketing allows companies to cater to customers’ wants and aspirations, creating a custom shopping journey based on their preferences. With information this accurate and reliable there is no need to speculate what customers want hence there is less marketing waste.
Zero Party Vs First Party
First Party and Zero Party Data are both given directly to companies with consent. The big distinction is that first party data is collected by companies when customers agree to data tracking. Zero party data is deliberately given by customers, they don’t just agree to a company gathering their data, they provide it themselves. It is more definitive and trustworthy because it comes straight from the source. For customers it is more transparent and engaging, they may want to be heard but they are also concerned about their privacy.
How To Collect It
- Subscription or Membership signups with surveys or quizzes
- Pop Ups to learn product and brand preferences
- Social Media polls
- Email and on site quizzes and surveys
- Reward customers for sharing their data
How To Use It
- Personalize ads, offers and promos
- Customize emails, have customers enter the appropriate automation
- Personalize content such as blog posts and social media posts
- Present customers with the exact products they are looking for
- Provide a valuable bespoke experience to their data sharing
With Zero Party Data everyone comes out winning. Brands get to build real relationships with customers which allows them to give a personalized shopping experience, recommend the desired products and send the relevant communication at each step of their shopping journey. Businesses that haven’t adapted to this new marketing will fall behind and risk losing customers to the competition.