Amid ever-tightening online privacy rules and the eventual extinction of the third-party cookie, businesses are racing to develop mechanisms to better understand their customers. One powerful antidote is zero-party data — the kind that people provide directly and intentionally to brands. This article will help you understand what zero-party data is, why it matters, and how your company can use it to enhance personalization.
What Is Zero-Party Data?
Zero-party data is data that a customer intentionally shares with a brand. That includes preferences and shopping plans and personal interests. While first party data is based off of tracking, zero party data is when a customer provides their own data voluntarily — on purpose.
When a website inquires, “What’s your favorite style?” for instance. or “How frequently do you want to hear from us?”, the solutions are zero-party data. These responses provide brands the insights of what a customer wants — without any guesswork.
Zero-Party vs. First-, Second-, and Third-Party Data
To get a better understanding of zero-party data, let’s compare it quickly with other data types:
First-party data, which comes from your own platforms — think your website or app — is gathered based on what users do.
Second-party data is someone else’s first-party data that you purchase or share.
Such third-party data is compiled by outside companies and then sold to others. It’s broad but less accurate.
What makes zero-party data special is that it is voluntarily and directly shared by the user. This makes this type of data more accurate and reliable than other types of data.
Why Is Zero-Party Data Important?
Today’s consumers care about what happens to their data. After years of data leaks and tracking scandals, people are more suspicious. And that’s where zero-party data comes in — it takes out that creepy feeling of being watched.
A sharing of data by consent, by human action, fosters mutual trust. It’s also a way for brands to better understand what customers actually want. Instead of surveilling behavior behind the scenes, companies are asking questions — and getting real answers.
The privacy laws such as GDPR and CCPA are also making it less easy to gather data without a user’s permission. Zero-party data addresses this by being transparent and consent-based.
The Value Exchange
Behind zero-party data, one key concept to remember: give and get. When any information is provided by the customer, they expect something useful in return — better recommendations, exclusive offers, faster service.
If an individual tells you they are interested in red shoes, your site shouldn’t display blue shoes to the same person. Acknowledging what they want helps them feel that they are being heard and seen. It also increases loyalty — and sales.
How to Collect Zero-Party Data
Zero-party data can be collected in many creative ways. Here are some real examples:
Surveys and quizzes: Clothes brand My Jewellery made a style quiz. Customers voted on their favorite looks, and the brand relied on those answers to display more of what people liked.
Polls and social media questions: Rapid polls on IG Stories or Twitter can let you know what your audience likes.
Contests and giveaways: In order to enter, people share their personal information.
Post-purchase surveys: Inquire how the shopping experience was after your customers made their recent purchase.
Profile creation: Encourage users to specify their interests upon registration or login.
These tactics allow brands to collect honest data while providing some fun, engaging experiences.
Zero-Party Data in Ecommerce
In ecommerce, personalization is everything. When it’s done well, it can feel like magic — as though the store understands just what you want. But with personalization, you get out what you put in.
This is the edge that Zero-party data provides. It powers product recommendations, promotions and personalized messages — all derived from information the customer told you herself.
The Business Development Bank of Canada for example takes a one-question survey on their homepage and asks: “What’s your business goal?” Depending upon that answer the website dynamically switches to a helpful page. This instantaneous personalization will create more positive experience for users, and improved performance outcomes.
Solving the Privacy-Personalization Problem
That presents a challenge for many brands: Consumers want personalized experiences, but they also want their privacy to be respected. Zero-party data is the answer. It gives customers the choice of what to share, and gives companies insight to provide personalized services.
This isn’t mysterious, no secret sauce, just good old clear communication and value on both sides.
Final Thoughts
And zero-party data types could transform how companies reach people. And it’s more honest, more accurate, more respectful. Under the strengthening shield of privacy laws and rising consumer expectations, collecting and leveraging zero-party data will be priority No. cocktail parties in the Roaring Twenties.
The future of marketing is not about watching users — it’s about listening to them.
Ready to start?
Start aligning your zero-party data strategy now and deliver the personalized experiences your audience expects.