The marketing world is always changing, but some of the most drastic changes are happening in businesses’ ability to understand their customers. Specifically, as data privacy regulations become tighter, the old ways of tracking and targeting customers are slipping away quick, fast, and in a hurry.
It’s not all bad news, though. There’s a smarter, more ethical and downright better way to connect with your audience.
Say hello to zero-party data.
What Is Zero-Party Data?
Zero-party data is information that customers willingly, intentionally and proactively share with your brand. Think of it as the digital version of someone walking into your store and saying, “Here’s what I like. Here’s what I need. And here’s how I want to hear from you.”
It includes data such as:
- A customer’s favorite products
- Purchase intent (how likely a person is to act on their impulse to buy within a set timeframe)
- Personal context such as birthdays, lifestyle details, names and ages of children, etc.
- Communication preferences such as email vs. SMS
The best part? It’s shared freely — no sneaky tracking or hidden scripts necessary.
Why Zero-Party Data Matters
Now that we’ve given you the basics of zero-party data, let’s look at a few reasons why it’s so important for your business:
- It’s privacy-friendly: As federal and state privacy laws become more robust, and as other parts of the world clamp down on privacy invasion too (think: European Union’s General Data Protection Regulation, or GDRP) businesses need to be crystal-clear about how they collect and use data. Zero-party data is great because it’s willingly given, putting it among the most compliant forms of data collection.
- More trust, less tracking: Customers are tired of brands that seem to know way too much about them. When people choose to share information, it builds trust instead of suspicion.
- Better personalization: Instead of guessing what your audience wants (or worse, relying on third-party assumptions), zero-party data gives you direct insight into their preferences, allowing your recommendations, offers and messages to hit the mark.
How to (Ethically) Collect Zero-Party Data
You can’t just throw up any old form and expect people to spill their own tea, of course. The key is to make the information exchange valuable — maybe even fun!
Here are a few of our favorite ideas.
1. Quizzes and Style Finders
Have you ever seen an online quiz that offers to help you find your ideal hairstyle or the perfect skincare routine based on your skin type? That’s an example of zero-party marketing. You get personalized results, and the company behind the quiz gets valuable insights.
2. Preference Centers
Not everyone wants to receive your content in the same way or at the same frequency. Some might want a weekly email, while others might only be interested in a monthly SMS text announcing a sale or providing a discount code.
Allowing customers to choose the type of content they want to receive and how often shows you respect their wishes and helps to keep your messaging relevant.
3. Surveys and Feedback Requests
We’ve said it before and we’ll say it again: Customer feedback is crucial in every aspect of your business. Giving your audience a voice not only gives you useful information to improve products, services and the overall customer experience, but it’s another way of showing that you genuinely care about the people you sell to.
Even something as simple as a post-purchase “How did you hear about us?” survey can give you insight into “dark social” analytics that you may have otherwise missed.
4. Loyalty Programs
Loyalty programs are a powerful (and in our opinion, often underutilized) way to collect zero-party data, because they’re built on mutual value. Customers get rewards, perks or exclusive access, and in return, businesses get insights that help them serve those customers better.
Offering something people perceive as valuable in exchange for profile info, purchase intentions, personal details or interests is a win-win.
5. Contests and Giveaways
Never underestimate the power of free. Contests, giveaways and promotions can drive engagement while collecting plenty of zero-party data along the way. If you want to make data collection feel less like a form and more like a game, this is a great way to do it.
Using Zero-Party Data to Boost Engagement
Once you have the data, it’s time to make the magic happen. Use your newly collected zero-party data to boost engagement by:
- Making personalized product recommendations based on a customer’s shared preferences
- Tailoring email campaigns to send emails your audience actually wants to open
- Showing different homepage banners, offers or blog posts based on user selections
- Customizing SMS and push notifications using preferred channels and timing to deliver relevant updates without annoying your audience
Stop Assuming and Start Asking!
Zero-party data isn’t just a workaround in a privacy-conscious world. It’s an opportunity to build deeper, more meaningful connections with your audience. When you treat customers like real people rather than data points, they’re more likely to engage, stay loyal and spread the word.
Not sure how to get the conversation started with your customers? Get the conversation started with Mischa Communications first! We’re here to help.