Understanding the Growth of Zero-Party Data

We witnessed the era of first-party, second-party, third-party data; now is the time for zero-party data. 

With increased scrutiny from governments into tech companies’ management of users’ data, and the consequent reactions from the top brands like Google, Apple, and others, it is crucial for SaaS companies to adjust their marketing strategies. To achieve this, some might face disruption of their core services.

There is now a deprecation of third-party data, and the same is outlawed in many countries. We are now entering a new era – the era of Zero-party data.

For a marketer, this is the right time to know about zero-party data…

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What is Zero-party Data?

The term, zero-party data, was coined by Forrester in 2020.

Zero-party data is data that a customer willingly shares with the brand.

With the guidelines from GDPR, CCPA, CASL, and Google phasing out the third-party cookies support by 2023, companies will have a hard time collecting customers’ data. These regulations will impact their ability to run effective marketing campaigns, serve customized content and user experiences. Basically, there will be difficulty in understanding customers and their aspirations from a brand.

Zero-party data has gained momentum in the past few years because customers are concerned about their data more. Understanding and utilizing zero-party is a must for all the marketers out there.

Benefits of zero-party data

The concept of zero-party data lies in the willingness of a customer to share his or her data with the brand in exchange for a timeless experience customized as per their desires and needs. Modern customers want personalized content, but they also want to be in control of what kind of data is shared to obtain the personalized experience from the brand.

Collecting zero-party data is essential for marketers as it will eliminate many issues. The data is collected freely and directly from the consumer. This helps to reduce the guesswork in customizing the customer experience. Zero-party data also helps brands to measure and build trust with their customers. Capturing zero-party data helps to solve the personalization-privacy paradox, which is a true catch-22 for marketers.

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To launch a successful zero-party data strategy, you can consider the following steps:

1. Registration

So, you want to target your audience and offer them the utmost personalized experience. Go for first-step registration on your app and website. The techniques work well on new users as they want to start using your products or services. Brands like Babbel have placed this strategy to collect zero-party data very well.

2. Website

Check how Wistia is trying to collect zero-party data. The brand offers options to its users to choose from what type of communication they want to receive from the brand. The information, in turn, helps the brand to offer customized messages and services to its clients.

3. Social Media

Each social media platform is power-packed with tools that help the brand collect their zero-party data. For instance, you can use Instagram polls to know your customers’ style and preferences. This is what brands like Nike, or Adidas commonly do.

4. Emails

Another fun and interesting way to capture zero-party data is to ask a customer their anniversary date or birthdate, in exchange for receiving discounts, vouchers, or birthday goodies. Apparel brand Westside makes sure to note the birth date of each customer, and later when the date arrives, the customer receives messages of personalized discount coupons.

5. In-Store

Collecting zero-party data is possible in-store as well. One strong example of this is signing a loyalty card. Whether you visit a Harrods store in UK or Macy’s in the US, the desk operator will allure you to sign a loyalty card, which collects your points so that you can redeem them in form of cash or other discounts in the future.

6. Preference Center

Brands can create a clear and concise email preference center, which offers options to users to select whatever they want from the brand.

Final Thoughts

For each modern marketer, collecting zero-party data is a worthwhile decision. The only trick is that, as a marketer, you need to encourage your audience to come forward and willingly add their personal details to the zero-party data collection box.

While it is possible to achieve the dream of collecting zero-party data, we have also given you the names of some tools to go forth with. Marketers must remember to be as open with the consumers as possible. There is no need to overwhelm consumers with more and more questions for preferences.

Be clear and concise, and win the zero-party data collection game.