Why Zero-Party Data is the Future for Digital Marketing

When Tim Berners-Lee first invented the internet 30-some years ago he made it clear that his vision was one of giving people the world over unfettered, equal access to information and knowledge, a source that would allow for information as well as ideas to be shared in an egalitarian way. A brilliant and democratic idea to be sure, however, since we live in a profit-driven world, it was perhaps a foregone conclusion that capitalism would find a way to monetize his good intentions. Thus, it wasn’t long before online ads and cookies were born. At first blush, cookies didn’t really seem like all that negative of an idea; let’s face it, nothing is really free and good content needs to be paid for too, right? After all, if you’re looking to buy a new red cashmere sweater, why wouldn’t you want to see ads that told you not only where you could buy one online, but comparison shop them for cost and quality? The targeted and re-targeted ads structure driven by cookies seemed to make sense for both the advertiser and the consumer, and if it meant that there would always be more and better content on the web, most of us were all for it.

That was until it got weird, and we remembered we hadn’t told anyone we were looking for a red cashmere sweater so how did J. Crew know that? Sure, you vaguely remembered seeing a cookie notice on Macy’s site when you first started searching for a luxury crimson crewneck, but at the time, you didn’t give it much thought, since you were on your lunch break and didn’t have all that much time to shop. It turns out you weren’t the only one who was a little creeped out; many other people started worrying about just how much they were being tracked while on the web, and just how much their privacy was being compromised. With user experience and customer journey being two of the biggest buzz terms and long-term goals of all business owners, industry leaders have long been searching for a better way to continue to effectively market their wares, but do so in a more honest, authentic way.

The answer to this conundrum? zero party data. With Google set to officially ban the use of third-party cookies just around the corner (going into effect in 2022), zero-party data has become the official best practices ideal for forward thinking marketers.

What Exactly is Zero Party Data?

Zero party data is marketing gold; useful, knowledgeable intel about your target audience that has all the power of cookie targeting without any of that creepy, "big brother" vibe attached to it. Zero-party data is the best data to have because it is given willingly by consumers themselves. While some other solutions to replace third-party cookies have been bandied about (trust tokens, anyone?), zero-party data is being rightly viewed as the most transparent method for targeted, precision marketing to carry on. With zero-party data, both the intent and the use of consumer data is directed by the user themselves. With zero-party data, brands are asking customers directly for not only their demographic facts, but also delving into preferences, goals, future purchases, and what they want from their experience with the brand, just to name a few areas of inquiry. This data is provided expressly from the consumer themselves, making it incredibly accurate and therefore, extremely valuable. It’s also a much more egalitarian way to market to your audience, because zero-party data is typically provided by the customer in a quid pro quo environment, given by them in exchange for special offers, rewards, or a better, more personalized brand experience. In short, zero-party data is a "win-win" for everyone, and those brands that get out in front of the ZPD trend now are destined to reap the data-driven benefits.

Why is Zero-Party Data Better than First-Party Data?

According to the experts at Forrester Research, first-party data is good, but zero-party data is better. Why? Ultimately, it comes down to two crucial facts:

Data Ownership

First-party data is typically data that has been collected on consumers without a direct opt-in and is owned by the brand. Conversely, zero-party data is owned by the consumer, and therefore it’s fluid. It can change over time, and what the customer wants from the brand can change over time as well. For example, just because a customer provided you with their email address to receive a discount coupon code for a pair of pants doesn’t mean they ALWAYS want you to contact them when you have pants for sale. With zero-party data, customers must keep telling you what they want from you and what they expect in return for you to be using it correctly. Learn more about Why Zero-Party Data is the Future for Digital Marketing visit our blog here : https://www.groupfio.com/getting-by-without-cookies-why-zero-party-data-is-the-future-for-digital-marketing/

For more in depth information about how to put a good Cdp to work in your enterprise please contact: Steve Palladino Evp Group Fio-Steve.Palladino@groupfio.com, or call him at 707-478-1329.