While first-party data offers insights for brands to improve their targeted ads, zero-party data helps marketers understand customers better and boost audience trust.
Zero-party data neutralises the uncomfortable factor of data-driven targeting that first-party data typically adopts by collecting customers’ data without their consent or transparency. Instead of capturing consumer actions, zero-party data directly asks the buyer for information.
Combining data that consumers directly offer to brands with observed data can help marketers tailor their products or services to suit the needs of their target audiences. By leveraging zero-party data, brands are better positioned to enhance their customer experiences and boost conversions.
Focussing on zero-party data can help organisations create marketing strategies to survive the next set of privacy regulations. Even if brands opt for first-party data, they must realise that such information can be collected without proactive customer buy-in, placing the organisation at risk of violating global privacy regulations.
[4 minute read]