The fallout from last year’s Cambridge Analytica scandal, coupled with privacy regulation sweeping the globe has made it increasingly difficult for marketers to build and maintain trusted relationships with consumers.
One major consequence of the burgeoning new era of privacy was the almost complete blackballing of third-party data sets, previously a fundamental tool for B2C marketers.
There is another option: zero-party data.
You know what your customers have done in the past. But do you have the data 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
personalized marketing across all stages of the customer lifecycle.
Rather than inferring, you’re asking, and consumers willingly and intentionally share. It is quite simply data your customer has explicitly and proactively shared with you, like purchase intentions and preferences to improve personalization and help build up a 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 and willingly from the consumer there are no intermediaries, no guesswork.
“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
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 purchases, mailing address, date of birth and the like. All valuable information, but it’s purchase history, rather than purchase intentions.
First-party data acquisition is an important quiver in the marketers bow. However future purchasing intentions are still 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.
How To Collect Zero-Party Data
For privacy and personalization to coexist, digitally savvy 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
Putting Zero-Party Data To Use
All the interactions and insights you receive from your campaigns tell you a great deal about the preferences of consumers. And all this data can help you segment your prospects and target them with relevant campaigns and content in the future.
The more targeted your campaigns, the better the results. But unless you connect your DMP to Wayin, then the high volume of quality, segmented data you accrue won’t be put to work. To
function effectively and deliver ROI, DMPs need data and Wayin allows you to push data into your DMP effortlessly.
Ultimately, you want to turn prospects into customers and personalize the experience and journey. Nurture the prospects and keep customers loyal.
The Rise Of The Zero-Party Data Economy
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