A Complete Guide on Zero Party Data Approach

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Are your customers complaining about the frustrating embankment of irrelevant ads messing up their digital devices?

The growing uneasiness of the customers in sharing personal data escalates the industry trends of avoiding the use of third-party data. But how can you obtain customer data to pitch in more effective marketing campaigns?

Welcome to the Zero Party Data Approach!?

Marketers are entering a new era of data privacy. This era is quite different from the previous one with what the industry has grown acquainted to. Today’s marketers are talking about “Zero Party Data.” Such data comes straight from your customers, not from third-party cookies. With its high- quality and abundance of data, you can hyper-personalize your message and service approach.

Experts have identified Zero Party Data as a significant player to initiate a personalization approach and secret sauce for maximizing ROI. Let’s take a look at what zero-party data is, why it’s important, and examples of it in action to encourage personalization.

What is Zero Party Data?

Zero Party Data is defined as “the collection of information that consumers have willingly provided via poll, survey, or filling up any form on your website, these are the information that your customer wants you to know, and without being invasive, you have complete insight into what your customers want”.

Customers are increasingly concerned about how companies utilize their data, as most people unknowingly share data while signing up or purchasing any products or services.

The term “Zero Party Data” is coined by Forrester.

"Data that a customer intentionally and proactively shares with a brand, which can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize her."

Zero-party data have fundamentally altered how a brand collects customer data and tracks advertising performance. In this scenario, customers share directly with you about themselves, and your brand must collect this information to offer a personalized experience to your target audience.

First Party Data vs Third Party Data - Zero Party Data - Future of eCommerce

What is the importance of Zero Party Data?

Zero Party Data is considered as “gold.” Customers will provide real-time and meaningful data when they trust you enough, which means you don’t have to infer what the customer wants. Zero Party Data is also taking care of the customer privacy factor as in this case, and organizations are collecting formation from the customers directly. Customers willingly provide information and validate their intent – enable and encourage personalized service.

Trustworthiness and definitiveness of the zero-party data make it the “first choice of all C-Suit Executives since it’s coming straight from the source. Marketers have the maximum confidence on data that their audiences knowingly and willingly give them. To protect consumer privacy, industry regulations such as GDPR and the CCPA are also putting substantial efforts that allow users to opt-out of being tracked easily.

Why do we rely on Zero Party Data?

To collect Zero Party Data, brands have to ask questions to consumers/visitors like — what they want, what their choices are, and what they need. So, brands are also learning about who they are. Consumers appreciate when brands acknowledge them. Zero-party data offers a way forward in the ever-shifting landscape of personalized marketing where both marketers and consumers can be comfortable. While providing the personalized experience consumers expect, it also allows marketers to respect customers’ privacy.

Zero Party Data is unambiguous, so it acts as an valuable relationship creator for customers and brands. These relationships will progressively grow with more information and modify over time. With Zero Party Data, you can honor customers’ privacy concerns. You will have access to the precious data your customers willingly share with you and meet customer expectations with your personalization efforts.

Do you want to know how Industry Leaders are collecting Zero Party Data?

Let’s take an in-depth look at a few exciting applications of zero-party data. B2B and B2C companies across industries reap benefits from zero-party data through polls, surveys, or forms.

Zero Party Data B2B Examples:

Download Forms for research reports:
Increasing Importance of supplier due diligence
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Zero Party Data B2C Examples:

Landing to the accurate service page
It's time to Healthify
Form to identify a finance advisory service
Bank for canadian entrepreneurs

These are a few real-world examples of Zero Party Data. Customers willingly share their information with organizations, and brands can use the info dynamically and instantly personalize their customer experience.

How are Zero Party Data shaping your eCommerce business?

As concerns about data tracking continue to grow, consumers are demanding more privacy and yearning for trust and clarity from brands. With the surge of customers’ skepticism over data tracking, platforms are taking steps to utterly protect consumer privacy and wipe out third-party data. Here Zero Party Data comes into the picture. It creates powerful marketing strategies when coupled with first-party data. Know how zero-party data is shaping our digital future.

Personalized Customer Experience

Brands can remove associated guesswork by directly getting critical information about preferences and customer intent through Zero-party data. Businesses can tailor their marketing strategy and personalize the customer experience by combining those valuable insights with other data.

It’s truly a win-win for both customers and brands. The secret key to successfully marketing to today’s customers is the ability to provide the highest level of personalization, and here the value of zero-party data becomes obvious. The customer retention rate will increase with zero-party data, and businesses will create relevant customer experiences. By leveraging both zero-party and internally collected data, the brand nurtures loyalty and provides customers a truly personalized experience.

Data-driven Marketing Approach

To collect zero-party data, things required are direct access to the consumer and trustworthy relations between the brand & consumer. By combining the data collected by your brand through third-party sources and zero-party data, you have all of the information you need to reach your target audience with a perfect handcrafted campaign. Researchers have found that marketers using data-driven campaigns are experiencing exponential growth in ROI.

Direct Access to the Customer

With tools like polls and quizzes, B2C brands can directly learn their customers’ preferences and modify future content and recommendations.
Retail brands boast higher engagement rates with targeted content on a channel even when users are in the mobile space.

Intimate Mode of Communication

Few brands use SMS to grant exclusive content and experience to target millions. SMS is quickly becoming one of the most valuable channels for acquiring zero-party data. SMS becomes the more intimate way to capture zero-party data as brands embrace a personalized marketing approach. Through SMS, brands can easily reach the consumers’ personal space and provide the relevant message quickly.

Final Thought

As Forrester says: “Zero-party data is precious and will improve the effectiveness of your firm’s personalization efforts.”

Zero-party data can vastly improve the way you communicated with customers when requested sparingly to your customers and applied strategically on your eCommerce platform. It brings a win-win situation for both the parties involved. To learn more about how to drive outstanding personalized experiences across channels applying zero-party with real-time personalization and interaction management solution – Schedule a call with our Salesforce Experts

ETG can bring the perfect solution to help you launch or revamp your zero-party data strategy.

About ETG Digital

ETG is a Crest Level Salesforce Partner headquartered in Plano, Texas. We are ISO 9001:2015 certified company with a global delivery center in Hyderabad, India. We have dedicated teams of professionals spanning continents located in US, Canada, UAE, UK, Australia and India. Our ability to maintain talent hubs in multiple locations and working on projects for clients from various domains gives us a very unique advantage. An advantage to leverage proven technologies like Salesforce Commerce, Sales, Service, Partner and Marketing Clouds and using them to deliver tailor made solutions for clients to suit their business requirements.

If you are looking to take your business into the next league, you are at the right place. Connect with us at info@etg.digital or call us at +1 469 666 1119

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