The majority of marketers are aware that it’s bad practice to be powering their campaigns through third-party data sets. But for all-too-many, the task of shifting from the quick fix of purchasing aggregated data sets, to collecting data directly from the consumer is a daunting one.
However, in light of the Cambridge Analytica scandal, the enactment of global privacy legislation, and the epiphany that much of this data that had been collected from third-party vendors was stale and inaccurate, it’s time for a rethink.
It’s time to embrace zero-party data.
“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
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.
Zero-party data allows brands to build direct relationships with consumers, and in turn, better personalize their marketing efforts, services, offers, and product recommendations. Since it comes directly and willingly from the consumer, there are no intermediaries and no guesswork. So no spamming customers with ads for products they’ve already bought or do not intend to purchase.
For brands looking to build out their consumer database and collect zero-party data, this playbook will take you on the journey from loading the CRM with first-party data to implementing a fully-fledged zero-party data strategy that delivers hyper-personalized campaigns to consumers.
The first stage of any data-centric strategy is growing the first-party database and collecting PII data from one-off customers. Next brands need to turn those customers into loyal fans by delivering exciting campaigns that generate user-generated content and start developing more meaningful relationships. With this data brands can deliver personalized content in triggered emails that yield higher open rates, click-throughs and conversions. As your customers respond and supply you with a host of self-reported data points your database becomes finely segmented and refined.
The audience building and progressive profiling from here becomes increasingly granular, allowing you to build up a complete picture of your customers motivations, triggers and desires and empowering the marketer to deliver truly one-to-one marketing.