What is zero-party data, and why should you care? Macy Edwards shares why zero-party data is becoming increasingly more important in the wake of the cookieless future.
Following my recent article on the importance of the “value exchange” and how to build trust with your customers, I’ve recently begun exploring the concept of zero-party data. As an agency ClickThrough have been exploring how we move from being reactive in an unknown space with those we work with to being proactive in a known space. We’ve been achieving this by leading with Truth and Challenge (two of our agency values) when speaking to those we work with.
The way to collect zero-party data is so simple. It’s by asking the customer directly about their context or needs. This is more specifically the data that a customer intentionally and proactively shares with a brand, which can include preference centre data, purchase intentions, personal context, and how the individual wants the brand to recognize them.
A great example of companies already doing this is Yelp and their new in-app preference centre. They ask users granular details about dining habits and needs to inform their marketing.
We know users thrive on hyper personalised experiences, and though the ongoing battle around privacy is confusing for a lot of marketers the demand from the end user is still present and real. When collecting zeroparty data consumers need to be entertained, engaged, and receive something in return for their attention and personal data. Consumers provide zero-party data as a direct value exchange. Which requires rapid production of high-quality content, making sure the online experience is immersive and seamless and a brand proposition that is clear, concise, and compelling. The important starting point for any “value exchange” is transparency – something I live by is that knowledge is power, if people don’t know what and why, and you don’t share how do you expect to build relationships based on trust.
An interesting trend now is the development of interactive content, originally this became popular in the early 2000’s but it is making a comeback with the shift to zero party data collection. As we can collect this quality data through various content types such as swipe survey, a personality test, game, playful poll or quiz.
For example, the Co-op collected preferences and interests from their audiences with a swipe survey to understand what type of food they liked to personalise their experiences.
Through these strategies’ brands can increase customer satisfaction, improve loyalty, drive advocacy and generate revenue. Also, as the data comes directly from consumers themselves the data is more accurate and trustworthy, allowing brands to build direct and personal relationships with them.
However, key thing to bear in mind with all the above is that with this data comes greater responsibility. As the president for the value exchange is set, the customer has provided their information and they expect you to keep to your promises and the more value you provide the customer the more information they will share.
As Forrester says: “Zero party data is extremely valuable and will improve the effectiveness of your firm's personalization efforts.”
When we look ahead at the cookieless future, immersive content driven approaches like this are going to be vital. I’ve already explained the importance of creative when preparing for 2022 because eye-catching visuals and messaging has never been more important. Users want to self-identify with brands and buy into them. If your message is compelling enough, you will achieve this.
To learn more about how to approach the Cookieless future and limit the loss of cookies' impact on your reporting, you can download our free eBook 'How to Prepare for the Cookieless World' - a free guide on what Cookieless tracking will mean for your advertising campaigns.