t’s never easy, collecting data. Stricter data protection laws and concerns on the part of users mean that collecting customer data is becoming increasingly difficult. By 2024, Google even wants to do away with third-party cookies. Until now, these have been absolutely essential for obtaining relevant marketing information. So what can you do, when MarTech depends on nothing as much as data?
Luckily, zero-party data provide a solution. Zero-party data refers to data that users voluntarily share with a brand or a company. This information was therefore not collected from third parties like third-party data, but made available directly by customers—voluntarily! To remain able to run effective marketing campaigns, marketers should therefore definitely engage with zero-party data.
According to the international market research company Forrester Research, zero-party data can also be described as “explicit data.” The company explains: “Zero-party data is data that users intentionally and proactively share with a brand. This can include data on preferences, purchase intentions, personal background, and what they want from the brand.” In other words: direct, meaningful data.
Marketing data is currently collected primarily with the help of cookies. They make it possible to offer personalized user experiences. Here’s a quick reminder of what is meant by first-, second- and third-party data:
First-party data:
This data, collected directly by the company, about users’ behavior describes how, where, and how often a person clicks, where they scroll, where they actively spend time, and where they pause. The context of each session as well as interaction with personalized offers is also reflected here. Purchases and downloads also fall into this category. More on the topic—you can read here how to obtain first-party data.
Second- and third-party data:
Data collected from other sources is known as second- or third-party data. When a company sells its customer data, it is second-party data. There are now many software solutions and other large providers that offer entire collections of data from cookies. This includes, among other things, demographic information, purchase signals, and other tendencies.
Let’s note: Both first-party data and zero-party data are collected by the company itself. While first-party data are observations, zero-party data are the details people proactively share, for example as part of a survey. So what exactly is so much better about that?
Zero-party data have one major benefit: they are based on users’ voluntary participation. Anyone who shares their preferences with a brand receives a unique, personalized marketing experience in return. Customers want personalized content, but at the same time they want to keep control over which data they share with a brand. That’s exactly why zero-party data is a forward-looking concept.
Marketers should therefore urgently address collecting zero-party data. Issues such as data protection, customer concerns, and uncertainties regarding preferences can be eliminated with the help of this customer data. In addition, zero-party data are important for strengthening customer trust.
So: zero-party data solve the dilemma between personalization and data protection. But where do the valuable insights come from?
In theory, all of this sounded very convincing, but an example from the USA shows that there are a few stumbling blocks when it comes to practical data collection: online questionnaires show that a suspiciously high number of people have the profession “accountant” (bookkeeper). This is because it is the first option alphabetically in the drop-down menu. What a shame!
So: zero-party data is not always completely accurate, as some people simply provide false information. Nevertheless, it is a contemporary and overall very convincing way of collecting data.
By the way: If you want to read something on the topic of clean data, we recommend the article “Improve data quality for your MarTech stack! Clean data in 5 steps”.
To collect reliable zero-party data on your website, it’s best to proceed as follows:
Before the app or website can be used in full, registration should take place. This way, new users can immediately state what their preferences are and receive a personalized experience from you accordingly.
On the website, you can offer options for what type of communication users would like to receive. This provides valuable information about where their interest lies.
Social media is a real goldmine for zero-party data. With the help of surveys, it’s very easy to ask followers about their preferences.
A member’s date of birth or anniversary on a site is a good way to offer users discounts and goodies. These personalized services build trust and are often appreciated.
It’s also possible to collect zero-party data in-store, for example via customer cards. This gives you information on birthdays, addresses, and preferences.
A preference center is another popular way to collect and manage zero-party data. There, users can specifically save their preferences and thus keep control over their experience and their data.
Surveys on the website or via newsletter are also a good option for obtaining valuable zero-party data.
Important: As with all other data, good data processing is also necessary with zero-party data. You have to listen to the data and respond to it in order to keep users’ trust.
If you manage to get your customers excited about Zero Party Data, you’ll be taking a big step forward. Remember to use this data in a way that provides users with a clear benefit. This works best through regular follow-ups as well as offers for users to update their Zero Party Data.
With the data collected, you’ll then be able to offer customers a personalized on-site experience entirely without Third Party Data. Whether it’s the customer journey, suggestions for suitable products, or the frequency of emails—Zero Party Data gives users a lot of control and provides the company with valuable data – a win-win situation!
Are you looking for software providers, consultants, or agencies that will help you make even better use of Zero Party Data in the future? We have already supported numerous mid-sized companies and enterprises in identifying the right partners for their data projects.
On the Matchilla platform, you get access to the most relevant software providers and agencies for data-driven marketing and can match them according to your specifications. Just give it a try.
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Till Zier is CPO at Matchilla and, as a MarTech and data expert, reports in MatchZINE on news and trends in the areas of data and analytics as well as data-driven tools and software solutions.
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