What is Zero-party data?

What is Zero-party data?

All successful marketing begins with good data — because data drives personalisation, and personalisation drives conversion. 

Types of data

Personalisation strategies have traditionally looked at three types of data to work out interests and intents of consumers.

These three well known types of data are:
> First-party data is any information that is collected through a direct relationship with a consumer.
> Second-party data is data that users are not giving directly, but that brands are obtaining through a direct relationship with another business.
> Third-party data is implicit, often outdated, collected by an entity that doesn’t have a direct relationship with consumers (for example cookies, browsing behaviour, credit score, …).

The problem is that a lot of it is based on inferred and observed data. And we know that assumptions are often wrong.

Another problem is data Privacy.  Following large data breaches governments introduced tighter regulations. We know The General Data Protection Regulation (GDPR) here in Europe and more recently the California Consumer Privacy Act (CCPA) this year.

Following these events Forrester introduced the term zero-party data defined as follows:

“Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include purchase intentions, personal context and how the individual wants the brand to recognize her.”Forrester

Why is zero-party data hot?

As competition grows marketers face increasing pressure to deliver personal experiences to engage.

Zero-party data is considered the most accurate customer data to deliver personalisation at scale because it reflects on current consumer experiences and provides insight into consumer intent. 

Marketers rather than relying on perceived or inferred information are directly asking consumers, who are intentionally and proactively sharing in return. 

Zero-party data is based on concepts of privacy and value.

Consumers are open to share personal data with brands when they receive better experiences. Brands must in exchange be transparent about how they collect and use the data.

Creating engaging experiences that build trust in the way consumer data is used is the best way to drive true personalisation. 

By taking the zero-party data path, marketers build direct relationships with consumers. As a result, marketers better personalise marketing communications and product recommendations.

Value exchange

When collecting zero-party data consumers need to be entertained, engaged, and receive something in return for their attention and personal data. Consumers provide zero-party data as a direct value exchange. 

To motivate consumers to intentionally and proactively share their data marketers can use incentive mechanics such as instant wins, exclusive offers, coupons, gifts, loyalty points, …

Successful zero-party data collection is based on interactive conversations and enables consumers to create their own experience while interacting with the brand.

For marketers to succeed they need to create experiences led by inspiring design and empowered by data and technology. 

Via interactive content (swipe survey, a personality test, game, playful poll or quiz) brands can collect zero-party data. 

For example with a “tinderesque” swipe survey we helped Central England Co-Op collect preferences and interests from their audience.

Together with Paperchase we implemented interactive personality profilers to collect insights from their customers.

By putting consumers in control marketers activate trust and create the most effective way to collect interests, intents and preferences.

With zero-party data, you can identify your highest value customers, develop one-to-one personalisation and maximise lifetime value of your customers. 

In summary

There is a general concern about data quality as inferred and observed data sources are not reliable.

A new type of data called zero-party data emerges. Data that is intentionally and proactively shared with a brand by consumers.

Thanks to zero-party data brands can increase customer satisfaction, improve loyalty, drive advocacy and generate revenue. 

Related Blogs:
Paperchase maximises Pay Day emails with Interactive Experiences
How is Central England Co-Op collecting data
Interactive Customer Profiler

odicci expands on ISO27001 certification

Odicci is the first ZERO-Party Data platform to achieve ISO27001 certification. It reinforces the commitment to the highest standards of information security and data protection.

Odicci, a leader in interactive customer engagement, today announced that interactive engagement platform was awarded the ISO27001 certification. 

The ISO/IEC 27001 certification displays that odicci has met the complex international standards in ensuring the privacy, confidentiality, and availability of the entire odicci customer engagement platform.

‘’We know that every customer engagement and data collection decision we make has a security component to it, and our customers and their data is at the forefront.’’ – Jacques Prothon (Odicci CEO)

Odicci’s customer engagement platform enables users to create interactive experiences to build strong relationships and loyalty with new and existing customers.

Now with the ISO/IEC 27001 certification, we have a compliance commitment to monitor the best practises through repeatable processes including data transmission, logging, storage access controls operations and tracking of threats, and continuous improvement.

We are setting the standard of thriving for the excellence and our strategic investment in maintaining a robust engagement platform and the completion of this internationally recognised certification process illustrates our dedicated commitment to security and the protection of customers data.’’ – Jacques Prothon (Odicci CEO)

ISO/IEC 27001:2013 is an Information Security Management System (ISMS) standard announced in October 2013 by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

The standard guarantees that corporations have established methodologies and a framework of business and IT processes to support identify, manage, and reduce risks.

GDPR – Do you know how this will impact you?

With less than a year to go, on the 25th of May 2018, the General Data Protection Regulation (GDPR) will be enforced upon businesses collecting personal data. Failure to comply with the regulation could result in a huge fine of up to 20 million euros or 4% of annual turnover – whichever is highest. Ouch.

So, what exactly does GDPR mean?

GDPR means that businesses will have to integrate many changes. Some changes will be relatively small, like not using opt-out (pre-ticked) boxes to consent. Some changes will be larger, like giving the identity and contact details of the data controller, and in some cases, hiring a Data Protection Officer.

Some of the more general requirements of GDPR are to outline the purpose of the data collection, the legal grounds on which it operates, and specification of how long data will be held. The data collector must outline to the individual their right to erase or rectify their personal data and make clear to them their right to withdraw consent and to make a complaint.

  • Data controller: Decides how data is processed.
  • Data processor: Maintains records of personal data and processing activities.

The introduction of GDPR means that the top priorities for marketers should be: conduct impact assessments; give individuals more control of their data; and revision of data policies.

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