Zero-party data and how it helps with personalization in the post-third-party cookies era

As marketers, there’s nothing more important than understanding your audience, figuring out what keeps them up at night, and showing how your brands can make their struggles disappear. And that’s exactly what zero-party data will help you achieve. Especially with the end of third-party cookies, zero-party data and first-party data will become your most valuable assets.

In this post, I’ll discuss everything you need to know about zero-party data and how you can make the most of it.

• Zero-party data and why you need it
• Sources for online zero-party data
• Sources for offline zero-party data
• How companies are using zero-party data
• Challenges with zero-party data and how to overcome them
• Make the most of zero-party data using Supermetrics

What’s zero-party data, and why does it matter?

Zero-party data refers to information that a customer intentionally and proactively shares with a brand. This data is highly valuable because it’s directly from the source, and it provides accurate insights into customer preferences, behaviors, and intentions.

The difference between zero-party data and first-party data

Both types of data help you personalize your marketing and services.

First-party data is information your business collects directly from your customers through their interactions, like website visits, purchases, or account sign-ups. For example, when you browse products or make a transaction, the company automatically tracks these activities.

Zero-party data, on the other hand, is data that customers share with you willingly. This might include filling out a preference survey, selecting interests during sign-up, or responding to a quick questionnaire about product likes and dislikes.

Why zero-party data will be your most valuable asset

As the industry moves away from third-party cookies, many marketers are looking into cookieless tracking solutions to understand customers and measure marketing efforts. Unlike third-party data, zero-party data isn’t reliant on tracking user behavior across different websites. It’s a more direct and privacy-respecting approach that allows you to build customer trust and loyalty. Additionally, since it comes directly from your customers, it’s more reliable.

If zero-party data isn’t at the top of your list, maybe it’s time to rethink your strategy if you want to reap the following benefits:

• Deliver personalized experiences: Zero-party data provides a wealth of information that can be used to create highly personalized experiences. You can improve customer satisfaction and engagement by tailoring marketing messages, product recommendations, and customer service interactions to individual preferences.
• Ensure data accuracy: Unlike third-party data, which can be inaccurate or incomplete, zero-party data is directly from the source. This means you’ll have accurate and reliable customer information, leading to more effective marketing campaigns and better decision-making.
• Ensure data privacy: By obtaining explicit consent from customers and being transparent about how their data will be used, businesses can build trust and comply with data privacy regulations.

Collect online zero-party data

For example:

• Web and app analytics: pages visited, time spent, clicks, purchases
• Email: open rates, clicks
• Customer survey and feedback: social review, social media comments
• Loyalty program: preferences and purchase history
• Direct communication: live chat data

Collect offline zero-party data

From what I’ve seen working with thousands of Supermetrics customers, offline zero-party data is crucial for brands with a physical presence. Especially when you combine it with your online-party data and/or other marketing data, you’ll be able to gain a more holistic view of the customer journey. And as we know in marketing, the closer you’re to your customers, the more you win.

Here are some examples:

• In-store purchase data: transaction, loyalty program, payment methods
• Call center: call logs, timestamps, call transcript
• Loyalty program: demographic, redemption records, feedback
• Offline events and promotions: signup sheets, contact info

How companies are using zero-party data

Brands use zero-party data to deliver personalized product experiences

Many brands allow users to create personalized profiles by entering their preferences for product categories, shopping behaviors, and wish lists. These retailers use this zero-party data to provide highly customized product suggestions, tailored email content, and targeted promotions that match the customer’s explicit preferences and interests.

For example, at Supermetrics, we’ll ask our first-time users a couple of questions about their roles, challenges, and goals, and based on that information, we’ll deliver the product and onboarding experience that’s relevant to them.

Agencies use zero-party data to optimize customer interactions

Many agencies specializing in customer experience management use zero-party data to help organizations improve their customer interactions. For example, work with consumers in the retail and consumer goods sectors to develop surveys and loyalty plans that gather client preferences directly. They can create consumer-friendly, highly tailored email campaigns, offers, and experiences with this data, which will boost customer engagement and improve return on investment.

Challenges with collecting and managing zero-party data and how to overcome them

Challenge 1: Your customers aren’t willing to share their information with you

Compared to when the internet was a new and shiny thing and users were more willing to share their information when asked, nowadays, it’s much less likely that they would share personal information unless they perceive a clear benefit.

What to do about it

1. Lead with value, such as providing exclusive content, tools, or insights, before requesting customer data
2. Make it clear what customers gain by sharing their data—whether it’s personalized recommendations, exclusive access, or valuable insights
3. Get creative with data collection. For example, use interactive quizzes, gamified experiences, or tailored offers that make data sharing fun and rewarding

Challenge 2: You struggle with data privacy and security

Since you’re dealing with sensitive customer data, you want to protect it against any cyber threats. If you’re not careful, you’re putting your company and your customers at risk.

What to do about it

1. Adhering to regulations like GDPR and CCPA is important
2. Implement security measures, such as encryption, access control, and regular security audits
3. Follow privacy-first data collection. For example, implement anonymization or pseudonymization when possible and communicate transparently about your data collection practices
4. Invest in secure tools and software
5. Educate your team about marketing data security best practices
6. Have an incident and breach response plan

Challenge 3: You fail to make the most of your zero-party data

Managing and analyzing large volumes of zero-party data can be daunting. After all, you’re adding more data to your collection—besides marketing, product, sales data, etc. If you don’t have a good strategy for using zero-party data, you’ll just add more complexity to your marketing.

What to do about it

1. Define the clear goals for zero-party data and how you’re going to collect, manage, and use it
2. Invest in tools that can help you make the most of zero-party data and combine it with other business data. For example, a marketing data warehouse is a great option
3. Automate marketing data integration to avoid human errors and make your work more efficient and easier

How to make the most of zero-party data using Supermetrics

With Supermetrics, you can move online and offline zero-party data into your preferred analytics tool or cloud platform. With direct API integrations and features like Custom Data Import, you can automate reporting and focus more on analyzing and using data to optimize your marketing.

If you’re already a Supermetrics user, here’s how you can access Custom Data Import. If you’re interested in trying the feature, get in touch with our team.

1. Go to your Supermetrics Hub. Start by selecting the option and launching the setup wizard.
2. Follow the step-by-step setup instructions to upload and map your data. You can upload different file types, including CSV, Excel, TSV, and ODS.
3. Once you’re done, make sure you schedule regular file imports via email so new data arrives in Supermetrics automatically.
4. Once configured, your data is now available and ready for analysis or to be combined with different types of data.

I’ve put together a tutorial to walk you through the Custom Data Import feature.

Don’t sleep on your zero-party data

Zero-party data is more than just a privacy-friendly solution. It’s the key to building trust, delivering personalized experiences, and future-proofing your marketing strategy in a cookieless world. By effectively collecting and leveraging zero-party data, you can better understand your customers, meet their needs and drive meaningful business results. Ready to make the most of zero-party data? Start with the right tools, and see how far it can take you.