zero party data

Discover how to get zero party customer data from customer experience

After Google has published plans to completely eliminate third-party cookie tracking in the next few years, other browsers followed suit. Add to that Apple’s recent changes in its Identifier for Advertisers, (IDFA), the sweeping privacy legislation: the way marketers communicate with consumers is undergoing a radical transformation.

The 2021 Digital Consumer Trends Index polled more than 5,000 consumers worldwide and 66% said that ads based upon cookies and tracked behavior are not cool. Numbers show that only 4% Apple users opt into app tracking for advertisers.

Google FLoC (cohort based advertising) is unlikely to be the solution. So what can marketers do to provide more personalization while also meeting privacy requirements?

Marketers must embrace the zero-party data economy in order to move forward and establish lasting, more meaningful relationships.

Zero-party data is the new gold standard in data and the engine behind the personalization that consumers want today. It is defined as the class of data that a consumer intentionally and voluntarily shares with a brand. This means that zero-party information can go beyond past preferences and behaviors to provide insights into people’s motivations and intentions. Brands can establish direct relationships with their customers and better tailor their marketing campaigns, offers, and product recommendations using zero-party data.

Although this may sound like first-party information with a 2019 rebranding, zero-party data is actually collected directly from customers and not through cookies. It’s not a matter of asking and receiving – digital customers are more cautious than ever about giving out their personal data and preferences. It is necessary to offer value exchange.

Consumers want to be entertained and engaged, and they need to receive something in return. Interactive experiences can be used by marketers to deliver this experience. Social stories, polls and quizzes can include reward mechanisms that provide consumers with a reason to respond and submit their zero- and first-party data.

A zero-party data strategy allows you to continue building your audience and profiling, but also allows for flexibility. Because the data points are directly from your audience, this ensures that your data is accurate, relevant, and up-to-date. A zero-party data strategy is a great option for proactive marketers.

You should embed your zero-party data strategy in your user experience and customer services strategy. These are the foundation for getting meaningful data from your customers:

Step 1: Listen to your customers

You can create a better customer experience by understanding what your customers are doing well and what they need to do better. It should be easy for customers to ask questions, make suggestions, and request changes. Customers often face problems with paying bills, receiving invoices and signing contracts. Find new ways to create streamlined experiences that impact a wide range of audiences.

Step 2: Provide incremental updates

Rapidly deliver upates to customers and iterate incrementally. Don’t wait six months to update major features. Instead, try to identify potential issues and tackle them immediately. The changes or enhancements are then tested and lead to adjustments.

Step 3: Provide better service through technology

You should look for opportunities where the use of technology could improve customer service. Pay attention to the interactions that you have with your customers. What touchpoints are most likely to benefit from human interaction? For example, customers want to speak to someone and not a robot during an emergency. For this you can offer audio rooms for your customers where they can talk with your personell.

Step 4: Measure

You must establish clear metrics to ensure business success. What are your key performance indicators (KPIs)? What are your customer’s perspectives on improvement? For example, a customer scorecard highlights the key metrics for each customer. This can incude order histories, interests, mobile app data like sessions, clicks and so on.

Satisfied customers are more likely to return and increase your revenue. By investing in customer satisfaction you provide the foundation for your company’s future success. First party data are your guardrails on this path. Collect them when you interact with your customers
Get in touch with our experts to learn how to implement a customer experience driven first party strategy. Follow us on our blog app to stay up to date.

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Photo by Edu Carvalho from Pexels


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