In its last report, Forrester announced that the zero-party data would weigh even more heavily with the restrictions of Safari and Chrome, the search engines most used daily. Third-party, second-party, first-party … and now zero-party, but what are we talking about exactly? Let’s take stock of a quality and voluntary data client that is becoming more and more important.
Is the first-party data still the Grail?
For a high-quality digital, physical and phygital customer experience, brands have no choice: only data can help them stand out. However, even if they continue to invest huge sums in this direction, the first-party data should not be the sole objective of their marketing acquisitions and committed budgets.
Indeed, the first-party data are essential but are not everything, because this collection rhymes too much with assumptions. Based on data of behaviors or consumptions, it is more the algorithms and deductions which are in the end only probabilities which can never possibly be really demonstrated.
On the web, the customer journey is analyzed, the search terms are archived and the online behaviors decrypted. From there, scenarios of intentions are deduced by means of a more or less qualified data and it follows that assumptions that are more or less valid. Traditional personalization strategies are in fact more or less obsolete and demonstrate, in all cases, the limits of their potential.
Zero-party vs third-party
Even if the third-party data is commonplace, this does not mean that this data collected by multiple methods is a quality data that allows consumers to know “on the fingertips”. Third-party data are mainly excellent for collecting valuable demographic and behavioral attributes on your customers and prospects.
From this collection of third-party data as part of the third-party data, it automatically results in more generic marketing that can affect the performance of the campaigns. In the end, messages are less well oriented, the target is moderately defined and campaigns are less well optimized.
On the other hand, zero-party data imposes itself as a windfall because it is given by consumers in a completely voluntary way. This sharing is intentional and proactive, and takes the form of information as varied as the intentions of future purchase, the personal situation or the level of relationship between brand and consumers.
To put it simply, comparing third-party and zero-party data is like deciding between quality and quantity while valuing a high degree of security and confidentiality.
How to recover the zero-party data?
With the various “business” we know that are directly related to the non-secure data, consumers are more scrupulous than ever when it comes to transmit their personal data and preferences. Yet, the whole paradox of zero-party data comes from the fact that it is not a marketing deduction, it is an intentional sharing of information.
The retailer thus has access to a quantity of information that the customer wants to share in order to benefit from a qualified customer experience and a personalized purchasing experience. Without forcing or surreptitious to collect this information, retailers collect information shared much more voluntarily and sometimes even in greater quantities.
In this way, security and confidentiality are no longer strong antonyms and the first-party data allows brands to establish direct relationships with consumers to better personalize:
Their marketing efforts;
Their offers and product recommendations.
However, not everything is so simple. The customer does not give up “free” information. He gives them because, in return, he will be able to benefit from a “special” offer. Rewards, personalized benefits, exceptional coupons, there are many ways to lure the user.
Trust zero-party data to optimize customer relations
Personalized marketing and direct relationship with the customer, here are the main advantages of this new era of data. With the zero-party, you can say goodbye to deductions, assumptions and other approximations. The brand-customer relationship is part of quality.
In addition, the consumer is more and more interested in this by carefully choosing the brands to which he gives his confidence. A KPMG study dating back to 2018 even shows that almost a quarter of French people want this personalized relationship.
However, can brands enter there with their eyes closed? Is the data collected from the zero-party 100% reliable? By offering a value exchange, there is still little chance that customers will share false information about themselves. It’s a win-win exchange, a collaboration based on mutual trust.
As with all human relationships, in everyday life, this purely marketing relationship must be balanced to work. Do not ask too much to the user, be fair and sincere not to “push” the consumer to invent information to please you. Make sure your request is well thought out, smart, and consistently up to the promised reward.