[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/07\/zero-party-data-definition-examples-benefits\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/07\/zero-party-data-definition-examples-benefits\/","headline":"Zero-party data: Definition, examples, and marketing benefits","name":"Zero-party data: Definition, examples, and marketing benefits","description":"Learn all about zero-party data, the hot trend redefining how brands think about customer identity and helping marketers reach the holy grail of customer engagement.","datePublished":"2022-03-07","dateModified":"2022-04-12","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/john-norris\/#Person","name":"John Norris","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/john-norris\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/aaa506606dcf5b437f7fcd2fe7f213d4?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/aaa506606dcf5b437f7fcd2fe7f213d4?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Customer Engagement and Experience","logo":{"@type":"ImageObject","@id":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","url":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","width":278,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/03\/zero-party-data-feature.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/03\/zero-party-data-feature.png","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/07\/zero-party-data-definition-examples-benefits\/","about":["CDP: Customer Data Platform","CDP: Customer Data Platform","Commerce","Consent data management","Customer Data","Customer Data","Customer Engagement","Customer Engagement","Customer Experience","Customer Experience","Customer profiles: Customer Identity + Access Management (CIAM) for B2B and B2C","Data Privacy: Laws, Consumer Expectations","Future of Grocery Retail","Marketing"],"wordCount":1146,"keywords":["CIAM | Customer Identity and Access Management","Customer Data","Customer Profile Management","First-party Data","Zero-party data"],"articleBody":"Zero-party data is redefining the way brands think about customer identity.While many companies operate with customer profiles built from device graphs and third-party data, forward-thinking customer experience leaders are headed in a different direction. They\u2019re incentivizing customers to share preference information, building this zero-party data into customer profiles, and using it to deliver truly personalized engagements.Through this approach, they\u2019re earning more trust, delivering market-differentiating personalization, and ultimately boosting customer loyalty.      Managing customer data: The five Vs of data virtuosity                Learn what matters today when managing customer data and how an effective strategy improves customer experience and boosts the bottom line.      What is zero-party data?Zero-party data is data that a customer willingly shares with a business. It includes things a consumer wants a brand to know about them, such as personal characteristics like size, style preferences, and purchase plans.Digging into this definition uncovers a couple of key points:This data type only has value if a brand can associate it with a first-party customer profile. This means it needs to be collected after customers identify themselves on digital properties through registration or log-in.It\u2019s wholly permission-based since customers intentionally share it. For brands, this means there\u2019s no ambiguity about using this data for segmentation, in personalization engines, or for product recommendation tools.Zero-party data vs. first-party dataSo how is zero-party data different from first-party data?Businesses collect first-party data through interactions with customers. This data type includes site-wide, app-wide, and on-page behaviors. Examples include hovering, scrolling, and active time spent on page. The goal of collecting first-party data is to better understand customers\u2019 interests and intent.Zero-party data has the same goal, but it\u2019s created by directly asking customers for their preferences in a value exchange. The engagements can occur on websites, social media platforms, mobile apps, or in preference centers.In this web engagement example, a coffee brand requests a customer\u2019s date of birth in exchange for an exclusive offer.As another example, the coffee brand requests data on the customer\u2019s drinking habits in exchange for a more personalized experience.In this last example, the brand asks about the customer\u2019s views on sustainability.Countdown to zero: Why now?The concept of collecting customer interests and using this data to deliver relevant engagements is the essence of modern marketing.So, what makes zero-party data a key trend instead of another jargon exercise? Here are three key reasons: A clear step toward transparent, value-added relationshipsFor years, marketers defined audience segments and fueled personalization efforts with inferred data sources. This led to poor conversion and retention, as well as a massive loss of customer trust. The zero-party data trend represents a welcome move toward transparency and trust. Increased digital interactionsWhether it\u2019s to save time, find products or services easier, or avoid going into a physical store, consumers are creating accounts, logging in to digital properties, and engaging online more than they ever have before. In fact, three in ten U.S. adults say they are \u2018almost constantly\u2019 online. This activity is a golden opportunity for brands to ask for preferences, learn more about customers, and deliver improved experiences. The reality of data deprecationGoogle Chrome is preparing to remove third-party cookies in 2023. Apple is making it easier for users to block data tracking. At the same time, regional data privacy laws are getting tougher. As a result, it\u2019s getting much more difficult to collect and activate customer data at scale for marketing purposes. Collecting zero-party data mitigates a brand\u2019s regulatory risk exposure while strengthening its ability to create truly personalized engagement.      What is customer identity and access management? Why does it matter?                Customer identity and access management is becoming a must-have for brands in the digital era. Get up to speed on this emerging technology.      The holy grail for marketers is finally within reachZero-party data gets marketers closer to the holy grail of \u201cthe right message to the right customer at the right time.\u201d But it also comes with a heavy responsibility.If customers take the time to provide preference data, brands need to hold up their end of the bargain by delivering real value.Three technologies enable today\u2019s enterprises to collect, process, and activate zero-party data effectively:Customer identity and access management (CIAM) software helps consumers seamlessly and securely identify themselves through registration and log-in. It enables brands to develop and deploy the screensets used to create the preference questions at scale. With CIAM, brands can associate the zero-party data they collect to customers\u2019 first-party, permission-based profile.Customer data platforms (CDPs) build on these profiles by connecting other sources of data to create a holistic view of customers from across the enterprise. CDPs also surface insights, such as a customer\u2019s buying preferences, and orchestrate this context to engagement systems. Touchpoints across marketing, commerce, sales, and customer service can benefit.Enterprise consent and preference management solutions ensure the data brands collect have the proper consent agreements associated with it. They create an audit trail, so brands can address regional data privacy law requirements as they collect, store, and process customer data, including the zero-party variety. They also allow brands to offer self-service portals where customers can manage their communications preferences, which is a key type of zero-party data.      Benefits of CIAM: Better security, slick CX, and more revenue                Discover the benefits of customer identity and access management (CIAM) software and how it can help your business grow revenue.      What’s in it for me: Incentivizing consumers to share data in exchange for rewards, exclusive offers, and moreWhile consumers want personalized experiences, they\u2019re also under siege from virtual noise. Brands need to offer clear value in exchange for zero-party data. Otherwise, customers won\u2019t bother.The promise of better product recommendations and personalized experiences are common value rewards. Yet some brands are taking the value-for-information exchange up a notch. They’re experimenting by offering loyalty points, exclusive offers, and discounts to incentivize customers to share their interests.Consumers change their minds a lot. An effective zero-party data strategy needs to account for the fluidity of preferences.This means brands need to provide the ability for them to modify preferences. It also means requests should be constantly refreshed to form a cadence of engagement.      Martech trends 2022: Personalization, privacy, and purpose                As we head into 2022, marketing technology will become more integrated, allowing marketers to focus on creating personalized CX for D2C success.      Better communication gets customers to stick aroundGeorge Bernard Shaw is credited with the quote, \u201cThe single biggest problem in communication is the illusion that it has taken place.\u201dBy finding innovative ways to collect zero-party data and use it to improve personalization, brands can avoid this problem and strengthen customer loyalty in 2022 and beyond.  Unlock the power of zero-party data. Watch our interactive demo HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2022","item":"https:\/\/www.the-future-of-commerce.com\/2022\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"03","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/03\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/03\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Zero-party data: Definition, examples, and marketing benefits","item":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/07\/zero-party-data-definition-examples-benefits\/#breadcrumbitem"}]}]