By now it’s assumed that most marketers know best practices for how to acquire data. But even so, all too many are still delivering campaigns powered by unreliable third-party data
sets because it is a quick fix.
Sadly though, this quick fix has put a spotlight on privacy, led to consumer mistrust, and been responsible for data protection regulations that sweeping the globe.
Third-party data can have its purpose of course, but over-relying on it is not just bad practice, it’s often bad data because it is commonly amassed from a host of unrelated and unreliable sources like credit scores, cookies and click trails. As a result it quickly becomes outdated and has no direct relationship with the individual consumer which ultimately hampers the quality and effectiveness of your campaigns. Consumer preferences, budgets, household sizes and the like all evolve and change over time, credit scores go up and down, and third-party consumer data rapidly becomes antiquated.
I sat down with Forrester’s Fatemah Khatibloo to discuss how we arrived in the new age of privacy and how marketers can deliver true personalization in this shifting data landscape. Check out the video below:
For marketers committed to building more meaningful relationships with consumers that don’t rely on third-party data, this is a time of opportunity.
Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include purchase intentions, personal context, and how the individual wants the brand to recognize her.
“We need to use the data we collect efficiently, effectively and well, making sure we are trading something of value for the customer.” – Fatemah Khatibloo, Principal Analyst, Forrester
This class of data allows brands to build direct relationships with consumers, and in turn, better personalize their marketing efforts, services, offers and product recommendations. As it comes directly and willingly from the consumer there are no intermediaries, no guesswork.
Putting the Theory Into Practice:
If brands are going to successfully leave behind the third-party data economy and implement a fully-fledged zero-party data strategy, they need to offer consumers something in return for their precious preference data.
And by leveraging the right incentive mechanics, and offering a value exchange, your customers will tell you what products they desire, what they look for in a service, and what motivates them to purchase. No purchasing surreptitious aggregated third-party data sets, inferring or device matching, but actionable data that has come straight from the consumer.
Whether an instant win promo, or product recommendation quiz in a social story to name but a few, these experience types that can live on the largest screen, or the smallest ad placement incorporate incentive mechanics such as coupons, content, or prizes that quickly and easily collect zero-party data. Arming you with the information you need to make the right connections with your customers.
Kiwibank launched a ‘Meet Your Money Self’ interactive quiz that profiled consumers spending habits in return for personalized financial advice.
Over the course of 10 questions, wannabe savers learned whether they were ‘sociable sharers’ or ‘power spenders’ and upon completion received a detailed report in return for their PII data and insights.
The purchase motivations and preference insights that were collected could then be used by Kiwibank to fuel future marketing campaigns and drive uber-relevant financial product recommendations.
145k – unique entries from New Zealand residents – over 3% of the entire population
75% – conversion rate
The Rise Of The Zero-Party Data Economy
Download our latest white paper to learn how collect zero-party data at speed and scaleDOWNLOAD WHITE PAPER