Zero-party data: the key to better personalization and building trust with customers

In digital marketing, there is increasing talk about privacy and moving away from third-party cookies. While marketers have long relied on data collected without direct user involvement, a different approach is now coming to the fore - zero-party data. This data is provided by users themselves, knowingly and voluntarily. The result is not only greater transparency and compliance with data protection regulations, but more importantly, better quality and more accurate data that brands can use to better personalise their content and offerings. So how does zero-party data work and how do we effectively capture it?

What is zero-party data? 

Zero-party data is information that users provide themselves and knowingly. Compared to traditional first-party data that businesses collect from user interactions with a site and third-party data that comes from external providers, zero-party data is much more transparent and accurate.

Examples of zero-party data:

• Preferences and interests (e.g., favorite product categories, topical content preferences)
• Planned purchases (e.g., user indicates that they plan to buy a new laptop in the next 6 months)
• Feedback on services or products
• Data completed in questionnaires, registration forms and loyalty programmes

Zero-party data allows brands to tailor their offerings to users to be more relevant and precisely match their needs.

How to get zero-party data? 

The key to capturing this valuable information is to create attractive and non-coercive mechanisms that naturally motivate users to share it.

1. Interactive questionnaires and surveys

No one is tired of boring 100-question questionnaires. But if companies care about getting zero-party data, they should create fun, short, and visually appealing surveys that users will find interesting.

When set up appropriately, surveys can not only be a great source of data, but also a way to engage customers and get them involved in the conversation.

2. Personalised offers and quizzes

A very effective way to motivate users to share their preferences is to offer them the option to personalize content or product recommendations. For example, online stores can use quizzes in the style of:

• "Find the perfect cosmetics for your skin".
• "What style of clothing suits you best?"
• "Which book is right for you?"

Once a user answers the questions and gets their personalized result, they usually have no problem sharing their contact information in exchange for product recommendations or discounts. 

3. Loyalty programs and exclusive rewards

People love rewards - and if they get them for sharing their preferences, all the better! For example, loyalty programs can include:

• Opportunities to earn discount codes for completing a profile
• Bonus points for answering short questions
• Exclusive access to newsletters for those who share their shopping habits

However, the benefits should be really attractive, otherwise users will prefer to keep their data to themselves.

4. Registration and subscription

Allowing users to create an account with customized content is another great way to get zero-party data. For example:

• The ability to save favorites
• Customized notifications about discounts and promotions
• Exclusive content available only to registered users

People will be more willing to sign up if a company offers them real value.

5. Interactive content and gamification

Another trend that has proven successful is gamification - that is, using game elements to engage users. This can include various challenges, contests, interactive videos or quizzes that not only entertain users but also motivate them to share their preferences.

Why is zero-party data the future of personalization?

With the move to a cookieless world, zero-party data is becoming a valuable source of information for businesses. Not only is it accurate and relevant, but it also respects user privacy and allows brands to build trust.

The main benefits of zero-party data

• Higher accuracy: data comes directly from users, not from external sources.
• Respect for privacy: It is collected transparently and voluntarily.
• Better personalization: They allow companies to customize content, offers and marketing strategies.
• Greater customer trust: Transparent access to data strengthens the relationship with customers.

Conclusion

Zero-party data is the answer to growing demands for privacy and better personalization. Unlike third-party cookies, they are obtained with users' informed consent, leading to higher data quality and accuracy.

Businesses that learn to collect and use this data effectively will gain a competitive advantage - not only in the form of more relevant offers, but also greater customer trust. In return, customers get a better user experience and offers that truly match their needs.

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