Privacy Era

In The Privacy Era, There Is Digital Opportunity

Richard Jones First-Party Data, Zero-Party Data

As the third-party data industry reels from the latest raft of privacy changes – chiefly, the main web browsers curtailing cookie targeting from aggregated data sets, marketers are going to have to find new ways to reach ever-elusive consumers.

This privacy pivot from Google et al, coupled regulations sweeping the globe like the GDPR and CCPA, hands power back to the evermore data-conscious consumers – arming them with tools to automatically delete cookie data as well as extensive rights when it comes to what data is collected and used for.

A recent Exchange Wire article described the industry as “being held together with a thin layer of adhesive tape.” But for proactive marketers, focused on building more meaningful connections with consumers, times of digital disruption are times of digital opportunity.

The Problem With Third-Party Data Sets

The proliferation of third-party data sets to power ad-targeting and personalization strategies has been the elephant in the office for all too long. All-too-many marketers turned a blind-eye to the surreptitious collection techniques, or the quality of the data, as they sought to push their messaging louder and further, basing success on all manner of vanity metrics like clicks, views and impressions.

And it’s these techniques, and the bombardment of irrelevant ads or creepy personalization that has led to consumer mistrust, as well as stale, useless data clogging up CRMs.

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 As a result it quickly becomes outdated and has no direct relationship with the individual consumer which ultimately hampers the quality and effectiveness of your campaigns.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.

“If you buy data from a third-party, that is a risky element that could get you in hot water not just with the client for being creepy, but potentially with regulators.” – Mark Grannan, Senior Analyst, Forrester

The Solution: Zero-Party Data

It is possible for marketers to collect data that is intentionally and proactively shared directly with you by the consumer. This is zero-party data.

It is quite simply data your customer has willingly shared with you, like purchase intentions and preferences to improve personalization and help build up a picture of who they are. Marketers can beat the cookie-apocalypse and collect this preference data by connecting directly with consumers and gathering the data, insights, and permissions they need to power personalized marketing across all stages of the customer lifecycle.

“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.” Fatemeh Khatibloo Principal Analyst, Forrester

Rather than infer, they’re asking, and by offering a tangible value exchange, whether that be a promo code, exclusive content, product recommendation or loyalty points, consumers are willingly and intentionally sharing.

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 and willingly from the consumer there are no intermediaries, no guesswork.

The 4 Types of Data

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 Airways

Etihad decided to stop throwing budgets behind digital advertising strategies that didn’t click with consumers and employ and interactive experience strategy. To promote its plethora of different credit cards they offer that map to all different consumer profiles, Etihad 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. No bombarding prospects with ads for credit cards based on stale, inaccurate, aggregated information.

Upon answering some questions regarding income, spending habits, travelling and benefits, users were recommended the perfect credit card that matched their needs.


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