What is zero-party data and how companies get it? How important are they for your business? Discover the advantages of zero-party data, value for analysis, and how the Evinent Analytics tool will help your business.
If you're not working on collecting data about your customers, then you are lagging behind the competition. That's absolutely true. One English-language weekly magazine wrote in 2017 that data is the most valuable resource in the world. It even surpasses oil in importance. And you need to learn how to «mine» it in order to turn a good profit.
Giant, world-famous companies have proven this statement with their own behavior. For example, Amazon, Google, and Apple all collect large amounts of data, which helps to support their impressive revenues.
Data collection allows you to obtain a large amount of information about customers, enabling you to improve the quality of service and outperform competitors. It's important to realize that growth-focused companies have no choice but to collect data. This includes zero-party data.
A New Concept in the World of Marketing: Zero-Party Data
The research company Forrester introduced the concept of zero-party data back in 2019. This is another type of customer data that helps companies reach a new level of development. Today, many companies are trying to use this strategy to extract more profit from their businesses.
Zero-party data is information that a person shares with a brand intentionally. It helps to improve marketing strategies because there is an accurate understanding of what the client wants.
Zero-party data doesn't require the use of cookies to study customer behavior and get information about their preferences. Users volunteer information about themselves and their desires independently and purposefully.
Here are some common ways to collect zero-party data:
- Surveys
- Quizzes
- Questionnaires
- Contests
The best platforms for collecting zero-party data are apps, websites, and social networks. You can create a questionnaire on interests and preferences in an app, which a person can fill out before registering.
On a site, you can invite a person to receive emails only on a specific topic. Therefore, it'll be easy to understand what interests that consumer. Social networks are a separate world that allow you to quickly interact with people and get information firsthand. Another option is an electronic mailing list. If you do it correctly and make a call to action, you will be able to determine whether your business falls within a person's circle of interests.
Advantages of Zero-Party Data for the Brand
Zero-party data guarantees that the information received from customers will be of higher quality and reliability. It helps personalize the services and products that people need. As a result, you can see a marked increase in purchases.
In a brand–customer relationship, trust is very important. So, when a company honestly says that it wants to collect information about a person to provide a personalized experience, the customer will be happy to share it.
People value personal data and try to control where they supply it. If customers need to provide information about them for a specific purpose or to obtain a bonus, they are more likely to do so.
The advantage of collecting zero-party data directly from the customer is the guarantee that the customer will be heard. This information allows you to improve the quality of your business's personalization options. Unfortunately, not all customers are happy with a company's response. Sometimes, expectations differ from reality.
By using zero-party data, which a person voluntarily shares with a company, you can create a more flexible approach to each individual client.
The Value of Zero-Party Data for Analysis
Any marketing expert will say that competent analysis is the key to increasing company sales. Data on purchases, user behavior, and their preferences in products/services is very important. Zero-party data plays a primary role here. Precise information about people's desires makes it easy to predict future sales trends. Zero-party data is also used for retargeting. It helps you set up your ad campaigns more precisely.
If you need a detailed analysis to improve your company's position among competitors, take a look at our Evinent Analytics product page. It's a simple tool that allows you to quickly increase sales and make your brand closer to what customers want. By using this marketing tool, you'll get all of the benefits of a tailored, personalized approach and will be better positioned to expand your business!
