Zero-Party Data: The OG of Data
Why Intentional, fully consented data drives higher ROI for marketing campaigns
Although a cookieless future may sound apocalyptic to some, the reality is that a more accurate and now regulated way to collect data is already underway. Not all data is created equal, and capturing zero party data is helping brands to stay ahead of the competition by reducing costs, increasing conversion rates, and generating additional revenue through increased sales and cross selling opportunities, reduced attrition rates, and reactivating lapsed customers. (See how)
What is zero party data? According to Forrester: “Zero-party data is that which a customer intentionally and proactively shares with a brand.” While passive first party data collection and sourcing third party data are beneficial to creating campaigns, taking data collection a step further by incorporating a mutually beneficial customer experience into your marketing mix allows organizations to collect zero party data and deliver additional value to both the brand and the customer.
Customer experience management, or CXM, takes on a variety of definitions. But in the context of customer journeys, it’s the strategy used to collect zero party data to understand and improve customer engagement, satisfaction, and the overall experience with the brand from acquisition to activation, retention, and loyalty. When designed with the customer’s perceived value in mind, the exchange provides brands the opportunity to magnify their personalization efforts by utilizing valuable customer experience analytics that deliver insights on customer preferences. It can also give the marketer consent to contact them through their preferred channels, as well as develop advocacy and loyalty across the brand’s products or services.
The key difference between collecting zero-party data and first-party data is the way the information is obtained. When visitors engage with a brand, through website pages for example, the information is collected based on a user’s activity, rather than by information they are directly providing. Zero-party data is captured when details are purposely shared from a visitor or customer with the intent to provide information about themselves through surveys, polls, interactive conversations, and more. The latter is more beneficial as it was openly shared with the brand rather than inferred by their actions, obtained from another brand’s data, or sourced from a third-party provider. It’s the OG of information – direct from the source.
The interactive methods deployed to collect personal, fully consented data rely on the value that the prospect or customer receives in return for their details and it is a key factor in developing an experience management strategy. Marketers must ensure a relatable benefit in the form of rewards, discounts, loyalty programs, and relevant communications is provided, and, most importantly, that an individual’s personal data will be kept private and safe,
B2B and B2C industry leaders are staying ahead of the competition by implementing customer experience management and technology programs to move from assuming what their audience wants to capturing motivation, intent, desire, need, value, and preference of their customers as they move through the lifecycle. Whether earning consent and permission from a visitor at the start of their customer journey to reengaging and activating lapsed audiences, a mutually beneficial experience management strategy enables hyper-personalized omnichannel communications that develop trust and loyalty, and provide the gateway to accurate data, insights, and brand loyalty.
Contact US for more information on how we can help you capture consented data.