First, it was Third-Party Data. Then it was First-Party Data. Now, the main focus of the industry is Zero-Party Data, also known as ‘Declared Data’, and it is becoming the main focus of creating and driving personalization in marketing campaigns. In this article, we’ll be covering what zero-party data is, the difference between zero-party data and first-party data, and how you can start your zero-party data journey within your organization to fuel personalization.
So let’s dive right in.
What is Zero Party Data?
Zero-party data is information shared directly from your customers, as they provide you with their personal information, interests, preferences, wants, and more. This key information is proactively, and voluntarily, being shared with their favorite brands and organizations. It paints a bigger picture of who they are as a consumer, and how they want to be recognized. In fact, Forrester’s Fatemeh Khatibloo, VP Principal Analyst, stated in a video interview that zero-party data is “gold… When a customer trusts a brand enough to provide this really meaningful data, it means that the brand doesn’t have to go off and infer what the customer wants or what their intentions are.”
Zero-party data eliminates the question marks around digital engagement and digital consumerism. And in a time when data regulation and safety are at an all-time high, zero-party data essentially puts the power back in the hands of the consumer as they choose which information they want to share. And because zero-party data comes straight from the source it is more definitive and trustworthy.
What’s the difference?
There’s a clear difference and value to be taken from both zero-party data and first-party data. When implemented correctly they can both lead to higher engagement, increased conversion rates, enhanced customer experiences, journeys, and loyalty. As we stated above, when you capture zero-party data, you are dealing directly with your target audience and asking them to give their information voluntarily. In capturing first-party data, you are asking, and ultimately given, permission from your audience to collect information about them as they browse through your website or App. It’s the difference between someone telling you that they’re shopping for that specific pair and style of boots versus someone just adding it to their wishlist or online cart.
Don’t forget to add value
When your customer is entrusting you with their personal data, their personal information, it’s important to act and provide value right away in return. So when you learn the exact type of boots they want and are interested in, the follow-up must be immediate and personalized or it could cause a potential missed sale and the opportunity for continued learning of that consumer, as we are always changing our mindsets and opinions. If you know the exact style they’re looking for, you don’t want to then offer something not related or similar in-style, until they tell you differently.
And this example can be applied to any type of brand with any type of product. Makeup, skincare, food and beverages, and so much more. With zero-party data you can provide personalization in your marketing efforts, which is exactly where its value lies. Personalization strengthens brand and customer relationships, it shows that your brand is listening, that it wants to provide the best experience to its shoppers, and in turn, it drives clicks, it drives conversions, and it drives true value when compared to anonymous, behavioral targeting.
A few final thoughts on zero-party data
All in all, zero-party data can significantly improve the way you and your customers communicate and interact with one another. It strengthens trust, relationships, and marketing efforts and expectations. It proves successful across our own partners who utilize our solution to safely collect zero-party data on their audience so they can better serve them. With Pico, your audience is able to experience your brand differently in the digital space, leaving you at a competitive advantage with consumer experiences, as well as safe, zero-party data capture.
Click here to get started on your zero party journey today