24 Aug 2023
Sheen Xavier James
In the world of online commerce, there is a dramatic shift happening in the way customer data & preferences are collected, shared and used. Big technology companies have been complying in this journey and have started putting in place their own privacy measures. For example – first, Safari killed the tracking cookie and then, the iOS 14.5 update limited the use of device IDs. Google Chrome will soon be eliminating the 3rd party cookies completely. All of these changes have triggered a fundamental shift in the way the retail and eCommerce industry does marketing.
“Zero-party data” is a term coined by Forrester Research and the definition is “Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize them.” It is explicit data and not something inferred from how a customer behaves on a particular site. The end customer has an expectation of a value exchange in return, primarily in terms of a better shopping experience suiting their individual preferences. In this age of privacy concerns, customers want to be in control of what data is shared to obtain that personalized experience with any company. Major browsers are moving to phase out third-party cookies and allow users to easily opt out of being tracked. This is resulting in marketers placing a higher premium and reliance on data that their audiences knowingly and voluntarily give them.
Creative marketers have produced a multitude of innovative ideas to collect this data, all while keeping the process an entertaining experience for customers.
Examples of ZPD collection methods,
In Conclusion, zero-party data can help marketers learn more about customers over time and build trust. With zero-party data incorporated into the commerce data stream, online retailers would be well equipped to optimize their e-commerce personalization efforts, connecting customers with the products they desire and helping the retailer increase revenue and facilitate brand loyalty.
In the rapidly evolving world of online commerce, the concept of Zero-Party Data (ZPD) has emerged as a game-changer. As privacy regulations reshape data collection, ZPD represents data intentionally shared by customers for a better shopping experience. This data is accurate, privacy-compliant, and exclusively used by the brand. Innovative methods like quizzes and pop-ups gather ZPD, enabling personalized marketing and refined product innovation. ZPD isn’t just about data; it’s about trust, loyalty, and mutually beneficial exchanges. In this new era, brands can enhance customer experiences, foster loyalty, and navigate privacy challenges effectively.