The Rise Of The Zero-Party Data Economy

The Rise Of The Zero-Party Data Economy

Diva Renton-RoderixLast Updated: White Paper, Zero-Party Data

You know what your customers have done in the past. But do you have the data to know what they are going to purchase in the future?

It is possible for marketers to collect this data, that is intentionally and proactively shared directly with you by the consumer. This is zero-party data. Marketers collect this by connecting directly with consumers and gathering the data, insights, and permissions they need to power truly personalized marketing across all stages of the customer lifecycle. Rather than inferring, they’re asking, and consumers are willingly and intentionally sharing.

It is quite simply data your customer has proactively shared with you, like purchase intentions and preferences to improve personalization and help build up a more complete picture of who they are.

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 and no guesswork.

52% of consumers would happily share data in return for product recommendations


Zero-Party Data Is Not First-Party Data

For the uninitiated, zero-party data is not first-party data with a 2019 rebrand. First-party data is collected during sales, and includes things like past purchases, mailing address, date of birth and the like. All valuable information, but it’s purchase history, rather than purchase intentions.

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Using only this data, future purchasing intentions are inferred from past buys, and this implied interest is implicit rather than explicit. Spamming consumers with ads for products they’ve already bought or do not intend to buy will only damage the relationship with your brand.

 

The 4 Types Of Consumer Data

Collecting Zero-Party Data At Speed And Scale

Consumers need to be entertained, engaged and receive something in return for their attention and preference data. Brands can deliver this through interactive experiences that conduct research, accrue opt-ins and deliver an altogether better experience with a tangible value exchange for the consumer.

Whether a questionnaire, poll, quiz or social story, by leveraging these interactive experiences that incorporate incentive mechanics marketers can quickly and easily collect zero-party data at speed and scale.

Capturing consumer motivations, intentions, interests, and preferences at scale lets you truly personalize each customer’s experience. Empowering you to stop using guesswork by arming you with the data you need to make the right connections with your customers. And by leveraging the right 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.

“Zero-party data is extremely valuable and will improve the effectiveness of your firm’s personalization efforts.” – Fatemeh Khatibloo, Principal Analyst, Forrester

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