I recently had the pleasure of hosting a Masterclassing webinar all about zero-party data—what it is, why it’s crucial, how to gather it, and how to effectively apply it to meet marketing objectives.
Here is a recap of the key takeaways.
What is Zero-Party Data?
Zero-party data refers to information that customers voluntarily share with brands. Unlike third-party data, which is often collected without a person’s explicit knowledge or consent, zero-party data creates a direct connection between the brand and its audience, ensuring that the information is relevant and useful for personalized experiences.
Why Zero-Party Data Matters
Despite recent news about Google not fully deprecating third-party cookies, our focus on zero-party data remains critical. Many brands are facing significant gaps between household penetration and actual consumer data. For instance, one major CPG brand found they had data on only 1.6% of households, despite being in 95% of US homes. This underscores the pressing need for brands to engage directly with consumers to gather valuable insights.
Brands Need Help Navigating Zero-Party Data Strategies
To provide a real-world perspective, Kelsey Mosher Sipe, Associate Shopper Marketing Manager at the Barilla Group, joined us for a fireside chat segment to discuss how her team is navigating its zero-party data strategy. Her perspective emphasized cross-industry collaboration as essential for advancing industry standards around responsible data collection. And continued on to validate our findings on how brands should consider using such technology to build brand loyalty.
Sourcing Zero-Party Data: Best Practices
Our research revealed that 47% of participants are willing to share personal information for a more tailored experience. Younger demographics showed even higher willingness—a trend that aligns well with Gen Z’s ‘digital native’ persona.
To inspire individuals to share their information, brands need to convey at least one of three main benefits:
Above all else, consumers must feel they are receiving something valuable in return for their information. Failure to do so might result in damaged brand trust and reduced customer engagement.
To address brand leaders like Kelsey’s concerns over “where to start,” we discussed several effective methods for collecting zero-party data, including a few of my favorites:
- Incentivized Surveys: Offering tangible rewards (like gift cards) encourages participation.
- Exclusive Discounts: Providing immediate discounts in exchange for email or phone numbers can drive engagement.
- Preference Quizzes: These can help brands understand consumer preferences while providing personalized outcomes.
- Conversational Commerce: Engaging customers in conversation can enhance understanding of their needs.
What Happens When Zero-Party Data Misses the Mark?
Our research indicates that the average person’s incomplete or aspirational view of oneself can lead to survey responses accurately reflecting true consumer behavior only about 50% of the time. To address this gap, brands that harness the power of subzero-party data gain deeper insights into audience behaviors, allowing for more nuanced targeting and personalized experiences.
Subzero-party data encompasses individual-volunteered insights obtained through advanced biometric and behavioral techniques that extend beyond conscious self-reports. This approach enables marketers to delve into subconscious motivations, preferences, and behaviors. While zero-party data relies on consumers voluntarily sharing their preferences—which can be swayed by social desirability biases or a lack of self-perception—subzero-party data still requires known, voluntary participation and uncovers insights rooted in physiological responses, such as emotional reactions measured through eye tracking or EEG.
For example, a beverage company might evaluate different ad campaigns by monitoring participants’ brain activity while they view each advertisement. Traditional surveys may indicate a preference for one ad over another based on self-reported feelings. However, biometric brainwave observation can unveil a different story: an ad might trigger stronger emotional engagement—evidenced by heightened brain activation linked to positive emotions—even if respondents don’t explicitly identify it as their favorite.
At Aki, we are pioneering the exploration of subzero-party data for our clients by integrating innovative methodologies that blend traditional data collection with advanced biometric analysis. This hybrid approach equips brands with a holistic understanding of consumer behavior, ultimately enhancing campaign effectiveness and fostering loyalty in an increasingly competitive marketplace.
Final Thoughts
Zero-party data isn’t just a buzzword—it’s a necessity for modern marketing strategies aimed at building loyalty and trust with consumers. By leveraging these practices effectively, brands can align more closely with customer expectations and enhance overall marketing success.
If you’re ready to elevate your brand’s zero-party data strategy, reach out to me at sk@a.ki to learn how Inmar’s customizable loyalty programs and streamlined shopping experiences can empower your brand to authentically engage consumers, gather valuable insights directly from them, and drive lasting loyalty.