Zero-party data refers to the data that customers willingly share with the brand in return for personalised experiences.
While first-party data offers insights about a customer’s online behaviour, zero-party data is essentially customers voluntarily telling brands about themselves. With Apple’s privacy changes, the cookie-exit and customers’ growing awareness of privacy, zero party data is set to take the centre stage.
Zero-party data includes consumers’ product preferences, personal details or how they want the brand to identify them. As zero-party data comes directly from customers, brands can be assured of high-quality information that they can confidently rely on to inform their personalisation strategies.
By providing value exchange, brands would need fewer promotional discounts to convert target audiences. Additionally, zero-party data can help companies create more detailed and accurate customer profiles, which can aid in accurate inventory management, lower cost per acquisition and higher subscriber rates.
[10 minute read]