How to Collect and Use Zero-Party Data for Marketing

You may already know that you can collect different types of data to inform your marketing efforts. The most commonly talked about are first-party data — collected from customers on platforms you manage — and third-party data — collected by organizations that have no direct relationship to the consumer. But there’s another, powerful type of data that some businesses aren’t yet using to their full advantage: zero-party data. 

What Is Zero-Party Data? 

Zero party data is data proactively shared with your business by a customer. When a customer fills out a customer experience survey, that’s zero party data. When they set up a profile on your website, that’s also zero party data. And when they chat with your service staff and happen to mention that they’re thinking of trading in their old vehicle for a new one, that’s zero party data too.

The major benefit of zero-party data is that it comes directly from the customer. This means it's more likely to be accurate. It also keeps customers in control of their data. They choose what to share with you and what to hold back.  

Zero-party data tends to be a small-but-mighty source of information. Usually, only a subset of your customers will take the time to share this type of data. But the data they share is usually highly accurate. You can use zero-party data to supplement first-, second- and third-party data sources. It is a valuable part of a successful first-party data marketing strategy.

How to Convince Customers to Share Information

Not all customers will choose to share information directly. Sometimes this is because they don’t yet trust the business or worry about excessive communication from the business. Other times, they’re simply busy or distracted and don’t feel like filling out a form. Fortunately, there are actions you can take to improve the chances that customers will share zero-arty data with you. 

Customers are most likely to share their information with your business when they have:

• a compelling reason to do so
• confidence that you will protect their data and respect their privacy. 

Both of these conditions are fulfilled by the same solution — transparency. You give customers a compelling reason to share by telling them exactly how their data will be used. Most often, you’re asking them to share so you can deliver tailored information and offers that match their needs and preferences. Tell them this is what you’re doing! The more clear and specific you can be the better. 

Be equally transparent about your privacy controls and data protection measures. Customers should know where and how their data is stored. They should have clear guidelines for how to opt-out or remove their data from your systems. They should know whether data is shared or sold and with whom.

This transparency doesn’t just increase customer confidence, it also helps you avoid costly penalties associated with GDPR, CCPA and other data security and privacy laws. 

7 Ways to Collect Zero Party Data

1. On-site Forms - These zero-party data collection tools are common on automotive sales sites, real estate sites, and other considered purchase sites. An on-site form gives customers a direct way to share information with a business. They are most likely to be used if you provide something in exchange for the customer’s time — for example, a downloadable resource guide or connection with a customer service specialist.

2. Surveys - Used before, during, or after a purchase, surveys can help you understand the customer experience. Keep surveys short and focused to minimize form abandonment. While scale-type questions are easiest to process, create a few short-answer opportunities so customers can share details you may not have thought to ask about.

3. Preference centers - These pages offer consumers control over how often they receive communications from you and what subjects those communications cover. Preference centers offer customers control over their experience. They also help you understand what consumers are interested in. You can use preference centers to let customers manage email, SMS, app notifications and other communication from your brand.

4. In-person conversations - We often think about data collection in the context of digital marketing, but visits to retail locations and special events are also valuable sources of zero-party data. Unfortunately, this data can be lost if the business does not have a mechanism in place to capture it. Sales and service teams should be trained in how to input preferences and needs based on customer interactions. 

5. Product recommendation tools - These self-service tools help customers identify which of your products might be the right fit for them. Each answer they give refines their results but also provides you with additional information about the customer. These should be designed thoughtfully to give the consumer useful results. 

6. Reviews and feedback forms - Post-purchase or post-service surveys can appear as pop-ups on your website or be delivered via email. They catch customers when the experience is still fresh in their minds.

7. Loyalty programs - Often viewed as a customer retention tool, loyalty programs also gather useful zero-party data. Use them to test different offers or track customer buying habits and service needs. 

Integrating Zero Party Data

Like any type of data, zero-party data is most useful when it’s fully integrated with other data sources. Use it to build or check the accuracy of customer identity graphs. Make sure it does not stay siloed in a separate database. For example, customer feedback may be collected by the customer service team, but it’s valuable to marketing and service teams as well. An integrated, centralized place for data to be stored and verified can help you make the most of your zero-party data. 

For help collecting data and building accurate customer identity graphs, reach out to Ignite by Launch Labs. Our identity resolution tool empowers you to collect, match and store data so you can offer your customer personalized information and compelling targeted offers. Schedule your free demo today.