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Why should marketers collect zero-party data now?

July 1, 2022   |
   Supraja Suresh

Delight customers through personalization.

71% of users are interested in personalized products, as stated in a Mckinsey 2021 survey report. And the best way to send personalized messages to customers is via email.

For example, an E-commerce marketer selling skin care products can understand the customer’s exact needs or preferences by asking him specific questions about the customer’s skin type or asking if he is interested more in body care products. Not just that, he can engage the customer based on the spending potential, purchase history, retargeting, and more.

To send personalized messages (emails and SMS) and create a personalized user experience, you need accurate user data, data, and data. So, understanding the likes, dislikes, and preferences is the prerequisite to getting accurate data.

Is it easy to collect accurate user data?

We live in a privacy-driven world. With the advent of various privacy laws like GDPR, CCPA, iOS 14.5 + updates, and android privacy policy, marketers are impermissible to collect third-party cookie data like before. 

Ad platforms like Facebook and Google have limited access to user behavioral data as users now can opt out of tracking. All such factors have resulted in poor ad performance as the custom audience match rates are poor, event match quality, and a decline in Return On Ad Spend (ROAS).

You might have heard this much-talked-about buzzword, zero-party data. Let’s delve into understanding all that you need to know about zero-party data.

Zero-party data-What is it?

It is data that a customer proactively and wholeheartedly shares with a business. It includes information you get from conducting quizzes, surveys, and questionnaires. 

The collection of zero-party data is a golden opportunity for businesses to run successful ad campaigns by collecting data directly from the source and parallelly building relationships with the audience.

You can delight your customers and make them feel valued while collecting the required information to improve the personalized customer experience.

Here are some salient benefits zero-party data offers you and your customers. 

Accurate data or good quality data

The information you collect is directly from your customers, and you are confident of the information you want. The information you collect is unique, unlike the second and third-party data that your competitors can also own. Zero-party data can help you plan for future brand campaigns targeting a wider audience with a personalized approach.

Build trust

The most notable benefit of collecting zero-party data is that it is obtained directly from the source (customers). The customers are willing to provide you with the information, provided they are informed about the purpose (transparency) of data collection and how it can benefit them.

Effective ad campaigns

Collecting zero-party data enables you to increase personalization in ad campaigns across all stages in the user buyer journey. Getting information about buyer intentions and preferences improves personalization in understanding your buyer persona and running campaigns.

How to collect zero-party data?

Collecting zero-party data can be as easy as part of your onboarding process. You can collect zero-party information while a user joins for a subscription or membership. 

Zero party does not stop with just collecting information on name, age, gender, email IDs, and address- but also includes questions that could give you an insight into their tastes and preferences and help build their relationship with your brand.

Registering customers for loyalty programs

For example, if you are running a cab service, you could ask how frequently they travel for work? Based on that, you can offer them a pass for the month at a discounted rate, or if the user is using the service for the first time, you could offer a discount for a referral or on their first ride.

Engaging customers for loyalty programs using zero party data

Collecting zero-party data could be done in various ways like surveys, polls, quizzes, and more.

Zero-party data +First-party data=Progressive personalization

Here is a brief on First-party data.

First-party data

First-party data is information you collect from your customers (known visitors) and anonymous visitors. Anonymous visitors do not give any information like name, email ID, and demographics, unlike the known visitors who provide you with this information.

It includes information like purchase history, personal information, and user behavioral data on your website. 

Improve your Event Match Quality (EMQ)

Collecting both zero-party and first-party data can improve your custom audience match rate and event match quality (EMQ).

CustomerLabs CDP tool collects all the advanced matching parameters IDs like Browser ID, IP Address, Click ID, User-Agent, Facebook ID, and Google ID required to improve your EMQ. As we have all the advanced matching parameters, your event match quality will improve, resulting in success in your ad campaign.

Identity resolution parameters

So, when you create ads based on your mid-funnel data, the match rate will be great, making it simpler to run retargeting ads.

Together, zero-party and first-party data can do wonders in helping you convert that customer for life with personalization. 

Uses Cases 

Discount offer on first purchase

You can offer a discount on their first purchase in exchange for information about your users/customers. Let’s say a user has made the first purchase on some skin product. You can ask questions about their skin type (dry, sensitive, or normal skin) or ask if they are interested in skin or body care products. It helps you understand their tastes and preferences. You can later customize personalization accordingly.

Zero party data collection during discounts on their first purchase.

Restock plus-size apparels

You can notify customers who have shown interest in plus-size clothing. Once you restock the plus-size clothing, you can send personalized emails and SMS mentioning a discount to interested customers and run ads for the plus-size customers.

Birthday offers

You can ask your customers to become a member and ask for their birth dates. In return, offer a discount on any purchases in their birthday month. By this, you are not only inviting your customers to make a purchase but also inviting them to check out your new products.

Takeaways

It’s time to get the ball rolling and start building your customer profile by collecting zero-party to improve your ad campaign performance. An amalgamation of both zero-party data and first-party data is sure to help compete with other brands in this privacy-driven world. 

 
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