Traditionally, personalization strategies have been derived from looking at behavioral trends, such as click-stream paths, search terms, purchase history and other indicators to try and ‘second guess’ the intentions and desires of the buyer. The problem with this implicit personalization is that it’s guesswork, and often wrong.
It is possible for marketers to collect preference data that is intentionally and proactively by the consumer. This type of data offers a window into their motivations, interests, intentions, preferences, and understanding what really makes them tick; helping to drive true personalization. This is zero-party data.
“Zero-party data is that which a consumer intentionally and explicitly shares with your company, and it is gold.” – Fatemeh Khatibloo, Principal Analyst, Forrester
I sat down with Forrester’s Fatemah Khatibloo to discuss how marketers can drive personalization strategies from zero-party data that boost engagement and increase conversions. Check out the video below:
Zero-party 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 from the consumer, there are no intermediaries, no guesswork. So you don’t just know what your customers have done in the past, you have the data to know what they will do in the future.
Digital disruptors like Spotify and Netflix have been successfully delivering personalized content from preference data. Subscribe and listen to Ed Sheeran and you’ll be sent relevant ads for pre-sale tour tickets and receive notifications for new albums as well as suggestions of similar artists.
Similarly, binge comedy box-sets and watch rom-coms on Netflix and you’ll be served similar content as well as receive triggered emails for related offers, shows and stand-up tours.
As your customers’ interests, preferences, motivations and desires evolve, moving to a zero-party data strategy means that your audience building and profiling doesn’t stop, but that it also allows for change. This keeps your data accurate, relevant and current because the data points are coming directly from your audience. Allowing you to continually deliver effective personalization, at the right time.
“Zero-party data is extremely valuable and will improve the effectiveness of your firm’s personalization efforts.” – Fatemeh Khatibloo, Principal Analyst, Forrester
Putting The Theory Into Practice:
Personalization isn’t about guessing what to target consumers with. If you ask, rather than infer, while employing interactive experiences that treat people as individuals, you can receive the rich data you require, deliver true personalization, and nudge consumers along the sales funnel.
Etihad have a plethora of different credit cards they offer that map to all different consumer profiles. They worked with Wayin to devise an experience that allowed them to personalize what was offered based on the individual’s interaction, giving them the best credit card options based on their personal circumstances.
Upon answering some questions regarding income, spending habits, travelling and benefits, users were recommended the perfect credit card that matched their needs.
6k – Entries
31% – Conversion Rate
The Rise Of The Zero-Party Data Economy
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