Why Zero-Party Data is Key in a Cookieless Future
2023 is only a few weeks away, and it promises to be the year when most brands will phase out cookies. Think of cookies as small tracking files that allow organisations to monitor your preferences online and tailor offers to you. Whilst personalisation and the unrestricted flow of information will remain the key to successful business development, cookies and third-party data have had their day. Enter zero-party data. Here is everything you need to know.
What is Zero Party Data?
Data privacy concerns have shaken up businesses in all industries over the past few years. Marketers have had to change procedures as consumers become more aware of how their information is used and shared by brands they interact with. A few years ago, sharing customer data with other companies was normal for many brands. Today, consumers opt-out of being tracked online with all but essential cookies. Others question how organisations are handling their personal information. Brands can no longer easily grow their customer base by buying data from third parties. Zero-party data will be one of the most-used business buzzwords of 2023. Coined by research firm Forrester, zero-party data refers to any information customers share willingly with your organisation. For example, consider an email address in exchange for a whitepaper download.
Is First-Party Data Not Good Enough?
Yes and no. Let’s clarify the difference between first-party data and zero-party data. First-party data refers to more generic information you collect from your customers. Website visitors, email subscriptions, and social media likes and follows are all examples of first-party data.
Like zero-party data, first-party data is shared by customers willingly. Both kinds of data are exclusive to your company, and you control how the information is processed, organised, and shared within the organisation.
The main difference between zero- and first-party data is that zero-party data gives your brand an insight into the customers’ intent and communication preferences.
What are the Benefits of Zero Party Data?
- High-quality data
- Increased trust.
- Improved personalisation.
Zero-party data gives your business access to the highest possible quality of data. Consumers share their information willingly in exchange for something they value. That minimises the risk of incorrect or incomplete data.
Sharing data through zero-party channels implies that there is already a level of trust between consumers and brands. That is an excellent foundation for building a long-term customer relationship with a growing customer lifetime value.
Personalisation works best when it is based on accurate information. In addition, if your brand is leveraging the insights gained from collecting your zero-party data, your personalised offers will be stronger than ever before.
Zero-party data makes your brand more independent and helps you form more robust customer relationships. Start today by creating an offer that delivers value to your audience and data to your brand!