Zero party data definition
The term ‘zero party data’ was first coined by Forrester to describe any data that a customer proactively and deliberately shares. Zero-party data is data that a customer intentionally and proactively shares with a business. It can include preference center data, purchase. Zero-party data is information from customers that they voluntarily and deliberately share with you. You acquire it through quizzes/polls.
Zero party data definition. What is zero-party data? And how is it going to shape our digital future?
Can zero party data tread this line? In a time where the internet is segmented into specific interest and demographic bubbles, customers expect the same level of personalization when shopping. But how do we create personalized experiences without spying on people? Legend has it that everytime Mark Zuckerberg explains that Facebook spying on you is actually a good thing, a mosquito gets its wings.
Zero party data is data obtained by simply asking the customer, instead of tracking their online behaviour. Many companies, most notably Apple, are giving their customers a choice to make decisions about how their data is tracked, adding more buzz to transparent and intentional data collection methods like zero-party data.
Pros: transparent, honest, no tracking cookies Cons: people not understanding your questions or not answering accurately. Zero party data is declared by the customer. It is any data given intentionally and proactively. The true value of zero party data is an honest, two-way relationship with your customers.
Zero party data collection is based on a revolutionary concept of just asking your customers what they want. It leaves little room for error – a customer selecting his preference for weekly emails about low impact cardio workouts will not get annoyed when you send them those emails.
This also means the customer can change it anytime. No more lost souls who slowly lost interest over time. There is a right and wrong way to collect zero party data. The first rule is to keep everything relevant to the customer. Only ask for information you can use to personalize customer experience. Most people will gladly answer 3 quick questions to get a more personalized experience. And most people will hate you for making them carelessly click through 20 questions that have nothing to do with their purchase intent.
Pros: unique to your brand, free Cons: too little data. First party data is data observed from your digital footprint. What pages on the website do they visit, what items they view, what articles they read, how much time do they spend there or when did they last log in.
All the data is specific to your business. Another advantage of first party data is ensuring that the data collection methods used comply with transparency policies. The problem with first party data is that you only know what your company knows. This can be an issue especially for younger, smaller companies with limited datasets. First party data excludes outside data sources that would provide a more holistic view on your client or even an introduction to new clients.
Like Facebook lookalike audiences, Google interest targeting or straight up buying an email list. Pros: expands your own database Cons: expensive. Facebook ads can be targeted at people who engage with a certain type of content, live in a certain area and use Facebook in a certain language.
So if you live in Kentucky and share memes about techno music, Facebook will show you ads from nearby techno festivals. Second party data offers more insights into your customers than your own first party data, but not as much as third party data. Pros: the most complete, full scale dataset Cons: expensive, possible security and compliance issues. Third party data is data compiled from a variety of sources, packaged and sold by a data management platform like Salesforce or Mapp.
Salesforce Marketing Cloud uses AI to track data from different sources – for example social media engagement, buying signals and demographics. This data is then used to create customer profiles and ideal buyer personas based on real world data, instead of guesstimates. It helps create a high-definition image of your customers and prospects. Third party data is the most scaled up, full picture data you can get on your customers and prospects.
It helps you gather data in one place, discover new markets, gain audience insights, create a full view of customers, target your audience, and effectively budget your marketing. Because of its compiled, multi-channel nature third party data comes with a lot of room for error.
From data quality concerns to data privacy issues, working with third party data can be risky. Data management platforms rely heavily on Cookie technology to identify behaviours. Apple and now Google are moving towards blocking third party advertising cookies, putting data management platforms at risk. Second party data is him getting targeted ads on Google.
Third party data is him getting emails from jewelry stores he did not sign up for. Zero party data leaves little room for guessing, since you simply ask what the customer wants directly. So how do you implement first party data collection into your web design? Keeping it customer centric is key. Think about how you can help potential customers without actually being there in person. Why are they on your website? What do they struggle with?
If your website was a physical store and you saw somebody walk in, what questions would you ask them to guide their shopping experience? Personality tests, product configurators and shoppable quizzes are gaining popularity because they provide value to new website visitors and social media followers. And they collect first party data. Tests, quizzes and interactive content in general is a simple, yet powerful way to collect first party data. Converting your social media followers into sales is a conscious process that begins with turning engagement into leads.
A zero party data way to convert your social media audience into customers is with branded, lead generation quizzes. The first party data collected from this salary calculator is then used to personalize US-based job offers sent to each customer. Customer service is the most honest, relevant and obvious way to collect first party data.
The customer describes a specific issue and a real person suggests a specific solution. However, mist companies customer support is not as closely tied into their CRM as it should be. This can be due to technical issues or simply the expense of connecting two software or buying an all-in-one. Automating the first part of customer support with a quick request screening before redirecting the customer to a real person.
This insurance claim form automates the most common conversation insurance companies deal with. It filters claims in 3 simple steps and then forwards the data collected to a real person for review. This needs to be done respectfully and as quickly as possible. Chances are that customers contacting support are already unhappy with something and lack of human response can make matters worse. Email is the biggest driver of sales. What makes it so powerful?
But how can we use it to collect first party data? It begins there. Helpful and relevant communication with current customers will bring you more revenue than constantly chasing after new ones. Emails are the easiest, most cost-effective way to establish such communication. Incentivize them to take quizzes with discounts. Allow them to adjust their newsletter preferences – less people will unsubscribe if you allow them to lower email frequency.
Use customer feedback as first party data to keep delighting customers and turn them into brand ambassadors.
This review generation funnel does 3 things right: 1. It incentivizes filling in the feedback survey with a free gift 2. A zero party data review generation funnel can be used to get 5 star reviews on autopilot. The survey can segment happy customers and send them to a public review platform and unhappy customers can just leave their feedback in the survey for your eyes only.
There are right and wrong ways to collect any data and zero party data is no exception. When collecting and using first party data from any source, you need to stay transparent, clear and easy to understand. Honest data collection is slowly becoming the new standard. Customers need to be aware that their data is being collected in the first place.
You should also tell them why. It also helps establish an honest and trusting relationship between a customer and the brand. Using the data also needs to remain transparent. What Is Zero Party Data?
Everything you need to know about collecting zero party data 29 April by Monika Ben. Zero party data definition Pros: transparent, honest, no tracking cookies Cons: people not understanding your questions or not answering accurately Zero party data is declared by the customer.
Why collect zero party data? First party data definition Pros: unique to your brand, free Cons: too little data First party data is data observed from your digital footprint. Why collect first party data? First party data is your audience interacting with your content. Why collect second party data? Third party data definition Pros: the most complete, full scale dataset Cons: expensive, possible security and compliance issues Third party data is data compiled from a variety of sources, packaged and sold by a data management platform like Salesforce or Mapp.
Why collect third party data? You can just talk to customers who purchased from you and ask them why. What’s Your Fashion Personality.
[Zero-Party Data Is The New Oil
Zero-party data, as Forrester defines it, is data that a customer “intentionally and proactively shares with a brand.” Contrast this with third-. Zero-party data is optional information that the consumer chooses to willingly provide to a company, to hopefully improve their user experience. In the case of.