Signals 19 – Zero-Party Data and the Value Exchange Economy

Danny O'Reilly Events, Zero-Party Data

Modern marketers are aware that it’s bad practice to be powering their campaigns solely through third-party data. But for all-too-many, the task of shifting from the quick fix of list purchasing to collecting data directly from the consumer is a daunting one. It needn’t be.

By leveraging interactive experiences that conduct research, accrue opt-ins and deliver an altogether better experience for the customer, marketers can collect the preference insights and purchase intentions required to deliver better, more personalized campaigns.

But it’s not merely a case of build it and they will come. Marketers need to offer a tangible value exchange if they want to build more meaningful connections with sometimes fickle consumers.

Questionnaires, polls, quizzes, contests or social stories can incorporate reward mechanics that give consumers a genuine reason to engage and submit their first- and zero-party data. And it doesn’t always have to be a discount or red-letter prize: exclusive content, social kudos, personalized recommendations and loyalty points can also be the catalyst for the collection of opt-ins and zero-party data.

the value exchange economy

The Zero-Party Data Maturity Model

For brands looking to build out their consumer database and collect zero-party data, they need a philosophy rooted in delivering contextual and hyper-personalized campaigns to consumers.

Cheetah Experiences empowers non-technical marketers to create engaging and interactive experiences that collect zero-party data and insights directly from consumers. Going on a cyclical journey from growing the first-party database, to collecting user-generated content from fans, triggering personalized emails, granular database segmentation, progressive profiling to collect and constantly update huge amounts of data points, eventually to a fully-fledged one-to-one zero-party data strategy.

the zero-party data maturity modelPutting The Theory Into Practice: Bowtech

The archery vertical is an ultra-competitive space. Leading brands typically spend millions on ‘feature wars to differentiate themselves from their rivals. However fundamentally, it’s a vertical hallmarked by similar tactics, ad formats, influencers and media, with the winners traditionally being those with the largest budgets.

Bowtech decided that rather than outspend their competitors, they would focus on connecting directly with customers through zero-party data.

“Zero-party data is more valuable than the product.” – Tim Glomb, Bowtech

Using Cheetah Experiences’ library of multi-channel campaign marketing campaign experiences to drive zero-party data, Bowtech has scrapped the budgets traditionally put towards TV advertising and print publications and focused on channels that deliver.

But this isn’t merely about growing the first-party database with huge amounts of opt-ins, the focus is on activating its current database. Turning a name and email address into a larger profile, filled with purchase intentions, buying motivations and interests. It’s this data that informs the truly personalized marketing that Bowtech creates for each and every customer rather than grouping them into large cohorts.

Bowtech is now not merely an archery manufacturing company, it is a data company, with a rich database on its own, and its competitors customers that is more valuable than the product is markets.

This strategy enabled them to outperform competitors by 20% in sales, while reducing $1.2M of marketing spend.

£1.2M reduction in annual marketing spend
500k zero-party data records collected
150 data points collected per customer
#1 U.S. Archery brand (from #5 before zero-party data strategy)

 

The Zero-Party Data Maturity Model

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