Digital Marketing

What is Zero-Party Data and Why is it Important for Your Brand?

Generate qualify leads has become an important part of the brands’ digital strategy. This allows a better understanding of their current and potential customers, in order to personalize sales and marketing actions. However, lately, the users’ reluctance to transfer their data, the increased demand for privacy or the elimination of Third-Party Cookies in 2022, among others, put in quarantine sources such as First-Party Data and Third-Party Data. And they open a path for a new concept: Zero-Party Data.

In this post, we are going to explain to you what Zero-Party Data is and why it is important for your brand. In addition, you will learn about Zero-Party Data capture solutions that you can easily implement in your digital marketing strategy.zero-party data

What is Zero-Party Data?

Traditionally the processes of capture and activation data have been given by:

  • First-Party Data: data obtained first hand (web, social networks, CRM, contact center…).
  • Second-Party Data: data obtained through exchange with other companies.
  • Third-Party Data: data obtained through external data providers.

Zero-Party Data is a term coined by the market research company Forrester Research, which defines it as the data that a customer intentionally and proactively shares with a brand. This information can relate to preferences, purchase intent, personal context or how they want the brand to recognize them.

This conscious and voluntary sharing is what makes the difference with respect to First-Party Data. Although these are collected by the brand and also come from the source itself, on many occasions the user is not aware of their transfer. This happens, for example, when browsing a website or registering for a promotion from a social network profile.

Benefits of using Zero-Party Data

  • Voluntary transfer: what is more advantageous than the consumer being willing to share data about him/her, preferences, needs or consumption habits.
  • Quality over quantity: the data you collect will come directly from the source, your customers. As opposed to mass data collection, you will obtain valuable data.
  • More real and accurate vision of what is happening in the brand’s environment. The customer shows a real interest in the brand by providing their data.
  • Ease of management, since the data is owned by the company and not by third parties.
  • Economic: it is a much more cost-effective method, for example than third-party data. You will not have to pay for them.
  • Strengthening of the brand-customer relationship: Zero-Party Data collection fosters a climate of trust and interaction.
  • Improved decision-making processes.
  • Optimization of data strategies

Zero-Party Data and First-Party Data: the perfect combo

It is not all rosy in Zero-Party Data. The scenario seems idyllic, but there are some cons. For example, the customer may be unwilling to share certain information, they may feel they have to fill in too much information, or the company may be so new or small that it doesn’t have an expected volume of customers to get enough relevant data.

To overcome this small obstacle, many brands resort to a strategy of capturing other data with a high degree of acceptance, such as First-Party Data. In this way, you can combine free data transfer processes between your audience and your brand, with a system of incentives (prizes, gifts, discounts, content, or other benefits), which encourages users to share certain data that you request.

In addition, another recommendation to gain the trust of your customers (and their data) is to be transparent and legal. For example, including additional and optional opt-ins in your registration forms.

Zero-Party data collection solutions

Some of the most widespread examples of data collection are found in the website or app registration processes. It is common that the brand or company requires certain information, as a survey, about us, our preferences or needs, to offer us a personalized experience. We also find it when, after a purchase, we receive a satisfaction survey.

Campaigns with interactive content

One of the simplest and most attractive tools to implement your data acquisition and activation processes are interactive content campaigns. Some of the most widespread and accepted by consumers are quizzes, games or surveys.

This type of campaign allows you to present valuable content to the user, for example, a travel configurator, in exchange for completing a participation form. In this way, you can register mandatory data (name, email…), as well as other optional data, focused on improving their future shopping experience (destination preferences, habits…).

Some campaigns that work best are:

  • Gamifications
  • Simple entry forms
  • Personality, knowledge or trivia quizzes.
  • Promos with coupons distribution
  • Satisfaction surveys
  • Voting contest with “choose your favorite” dynamic

 

Why should you opt for Cool Tabs’ interactive marketing campaigns?

  • You have an extended catalog of mechanics, adapted to different objectives, focused on maximizing participation and conversion.
  • You can enable a customizable data form, as well as include additional questions.
  • They can be published on social networks, blogs, newsletters or embedded in a web, app…
  • You can display customized final screens based on the results obtained by the user, depending on the result obtained or the content selected.
  • You can send personalized communications by email and/or SMS, after participation.

 

Now that you know the way to obtain first-hand and valuable information from your users and customers, start planning your lead generation strategy. Set your goals and find the best mechanics to achieve them.

Do you need help planning and launching your interactive content campaigns? Contact us at info@cool-tabs.com. Other brands have already done it!

 

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