It might seem like it was only recently that companies went through adding "Accept" or "Decline" buttons to their web page to allow users to decide whether or not they want to allow Third-party data sharing. Fast not so far forward, and third-party cookies are on their way to being banned from Google to a certain extent that is prevalent for creating marketing research. What does this leave marketers within Europe? Zero-party data.
Difference between Third and Zero-party data?
Zero-party data is information that customers voluntarily share with organizations. First-party data comes from customer behavior, such as web activity, and requires analysis to derive relevant insight, while zero-party doesn't require analysis and offers insights directly from customers. This data can give marketers accurate audience insights because it comes directly from customers. As organizations collect data through polls, surveys, and form submissions, marketers can use it to tailor product recommendations, messages, and offers to each customer.
Third-party data is data that a company can buy from outside sources that are not the original collectors of that data. Instead of collecting it, a company acquires it from large data aggregators that pull it from various other platforms and websites where it was generated. These aggregators pay publishers and other data owners for their first-party data. While it seems convenient to access data, it is often the main reason company domains lose their good reputation or get marketed as spam when conducting direct marketing actions.
The four types of data:
Changing the way we collect data
Customers are becoming more and more informed about the information and personal data that are being collected and sold and then reused. And not only that but they are also being given more options in deciding how much information they are willing to change and in which circumstances. When given the option, most people aren't interested in selling their data to a third party. Third-party data will no longer be a viable option in the near future.
Companies are obligated by the GDPR, the CCPA in California, and various other agreements to offer multiple choices to regulate cookies being used on their websites and collect customer data appropriately while being transparent on how that data will be used. Apple is already giving consumers the ability to opt out of tracking and third-party cookies on its browser and in apps on iOS devices and Google is planning to block third-party cookies from Chrome in 2023.
How to collect quality zero-party data?
Zero-party data is information from customers that they voluntarily and deliberately share with you, but as with all good things, it comes with a price. By engaging in this kind of dialogue with your prospects, you’ll find that data collection, marketing, and interactions become more of a conversation rather than a one-way presentation of information and products.
Zero-party data is information collected outside the standard procedures of online orders and transaction lead forms. If you ask your customer something about themselves or what they like, that's zero-party data. When your customer fills in their address in order to complete a purchase, that's first-party data.
Whether it be a quiz, a pop-up that asks to offer recommendations in return for information about their interests, or a discount. Creating a valuable zero-party data collection strategy is the online version of asking the question "How may I help you today?" when a customer or client enters your establishment. It does take more creativity and knowledge but the value it does for brand reputation and word of mouth is incomparable to the standard way we've been collecting data. Studies show that people tend to enjoy answering questions about themselves and building stronger relationships with businesses.
To help you start on your zero-party data collection journey our Team of experts will work closely on your buyer persona and path to insure your company gets the most out of each stage of the marketing funnel.
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EuroDev, established in 1996 with offices in The Netherlands and France, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. Since our founding, we have created a proven, successful business development model and partnered with over 300 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing,g, and Digital Marketing.