Ease Fears Over Data Sharing Online with Zero-Party Data
Give consumers control over what they share with these best practices.
Let’s be honest. As marketers, we want as much consumer data as we can get our hands-on. But we’re also consumers ourselves, so we understand why people don’t always want to hand that info over. Data security scandals have us spooked, and the responding consumer and data protection legislation has led to a new era of privacy.
We want to provide a truly personalized experience for our consumers — after all, personalization is the pinnacle of marketing content. But sadly, 64% of marketers have admitted that bad data stops them from doing that (Cheetah Digital).
So, what’s a marketer to do? How do we get to know our customers' wants and needs when people are holding onto their personal information like their grandma’s top-secret chocolate chip cookie recipe?
Enter zero-party data.
Wait, what?
Zero-party data. It’s any preference data a consumer intentionally and proactively shares with a brand. This includes purchase intentions, personal context, how you want the brand to recognize you, and other personal preferences (Forrester).
When a person shares their zero-party data, they’re just telling you their likes and dislikes. No personally identifiable information. No date of birth, address, phone number. And since it’s just preference information, consumers feel better about sharing it. Fun fact: 76% of consumers would share data in exchange for some sort of personal benefits, such as personalized offers or exclusive discounts (Business Insider).
By collecting zero-party data, you strike a balance between getting to know your customers and respecting their privacy. And you avoid getting stuck with third-party data, which tends to be incomplete or even incorrect altogether.
It’s a win-win.
Marketers get a holistic picture of consumers beyond the typical demographic factors that we’re accustomed to. In fact, having a clearer idea of what our customers want and like can actually help us figure out what customers are loving — or hating. And since zero-party data is controlled entirely by the marketer, say hello to data accuracy and goodbye to unreliable and unsecured data from third-party vendors.
As for consumers? They get a personal benefit in exchange for their data, plus interactive experiences that allow them to play a major role in their favorite brands’ growth, which in turn creates meaningful connections between consumers and brands.
It’s also really simple to collect zero-party data.
Unlike first-party data, which requires registration forms or analytics tools, zero-party data can be collected through surveys, gated content with lead generation forms, questionnaires, competitions, or preferences within your website. Bonus, these methods also encourage engagement with your brand.
Ready to take the leap? Here’s what you should do::
- Be transparent
Many consumers feel they’ve lost control over how their personal data is collected and used. In fact, every 6 out of 10 adults say they find it impossible to go through everyday life without having some data about them collected (Pew Research Center). So when consumers choose to share information with a brand, that shows lots of trust.
The key to building that trust with your audiences is simple: transparency. Companies that are transparent and honest in their actions — especially when it comes to data — are the companies with better brand loyalty. And we’re not just saying that: 78% of customers “are more loyal to companies that are transparent about how their data is used” (Salesforce).
So if you want to dive into zero-party data, the first step is communicating a commitment to transparency and being upfront about what type of information you’re collecting, why, and how it will be used.
2. Create a clear value exchange
Even when it comes to zero-party data, people may still feel wary about giving up their data… That is unless they see there’s something in it for them. People are more willing to share their data if there’s a clear benefit for them, like those exclusive discounts we mentioned earlier. You can also make use of a positive feedback loop, highlighting your brand’s appreciation for consumers’ zero-party data by keeping them up-to-date on what their data helped the brand do.
3. Listen and deliver
People just want to be heard, especially by the brands they love. Having a strong connection, especially one based on a shared set of values, between your brand and your consumers is important to maintaining customer loyalty and building trust.
Zero-party data helps brands to figure out what those shared values are with accurate information straight from the horse’s mouth, instead of guessing based on generalized assumptions. Once that trust among consumers is strengthened to the point of providing valuable zero-party data, it’s up to your brand to prove yourself worthy of that trust — using the data to guide content strategy in ways that align with consumers’ needs and preferences.
Zero-party data is where the future of marketing lies.
You get the data needed for personalized communication, save money by not buying data from less-trustworthy sources, and establish trust in your brand among existing and potential consumers. What more could you ask for?
Ready to get started with zero-party data? Get in touch with us at hello@havashelia.com.
