The Advantages of Zero-Party Data
There has been a lot of coverage about third-party data being phased out over time, coinciding with first-party data becoming the method of choice for marketers to promote brands to potential customers. But were you aware of zero-party data? (Spoiler alert: Instead of the brand reaching out to the customer, the customer is reaching out to the brand.)
A bit about zero-party data
Zero-party data consists of information that is difficult to buy from a potential customer. To explain this in another way, outside of a little nudge or encouragement, there is little prodding on the part of a brand or company that may want to know more about a user who could become a prospective customer. How then, do they encourage potential customers to reveal information about themselves?
Surveys and questionnaires, anyone?
Throughout time, brands have promoted goods and services to sell. And there are people who need or want these goods and services. The dilemma has been matching the brand to the customer. Brands looking to “match” with customers can post a questionnaire of some kind, be it a survey or quiz. If online users choose to fill out these questionnaires, they are volunteering information about themselves. This is zero-party data in action. As simply defined by Forrester in its 2021 report, “Now Tech: Zero-party data solutions” this is: “Data that a customer intentionally and proactively shares with a company.”
What questionnaires ask—and the benefits that may result
Katherine McKeever, loyalty product manager at Yotpo explained to Glossy: “Using zero-party data, brands give customers bespoke experiences most relevant to them, like personalized product recommendations, rewards, perks or exclusive access.”
The Glossy article reported that brands—many of which are direct-to-consumer—might tie quizzes into their promotions that ask about purchase intent, preferences, and anything that will help make the customer experience as personal and custom-tailored as possible. If a prospective customer shows interest and decides to become a client, the relationship with the brand grows. The customer then receives perks ranging from personalized recommendations to becoming a loyalty program member, among other benefits.
Effective examples of customers who are likely to be proactive about sharing personal information are those seeking to improve their health. Digital Wellness and Total Wellbeing Diet, two EGC clients, have effectively promoted their weight loss products and programs via surveys to interested prospects. A “Tell Me More” form appears on the Digital Wellness website, while Total Wellbeing Diet features a “What’s Your Diet Type?” entry form to a quiz. In each instance, the online user has the power.
It may be said that the practice of zero-party data—where brands will in fact find out what customers want—cuts to the chase: Brands find out what customers want, and then customers receive what they want from brands. Everyone’s happy.
If you think EGC can help your brand develop zero-data strategy—as with Digital Wellness and Total Wellbeing Diet—contact us today. You may have customers visiting your site to learn more in droves.