Going into 2022, privacy tech has been identified as the top forecast to look for for increased marketing investment throughout the year. Consumers have expressed anger, confusion and skepticism about company breaches, unsolicited sharing of personal information and data collection from other organizations. A poll just before the new year, forbesIt showed that almost 160 out of 463 chief marketing officers put privacy ahead of predictions of artificial intelligence (AI), the metaverse, and other technology impacting the industry.
While companies try to check the privacy compliance box, the main solution to ensuring consumer privacy and trust in a competitive marketplace is to obtain information directly from the customers themselves. Zero side data Data that a customer intentionally shares with a brand, such as their preferences, insights, profile data, and consents. Customers expect companies to provide value in exchange for their willingness to share their personal information. This process builds trust with the customer and helps companies maintain compliance. For example, one of the most common forms of zero-party data is to collect a person’s consent when they sign up to receive their email address, interests, and product information. This fundamental knowledge enables businesses to give customers what they want to move forward, which in turn encourages customers to continue sharing data.
How Does Zero-Party Data Different from First-Party Data?
Zero-party data is a subset of first-party data. In addition to zero-party data that a customer publicly shares with a brand, first-party data includes data that a company directly collects about customers as they interact with their brands, such as demographics, purchase history, and subscription data. Businesses can only offer inferred insights about their interests, while using this implicit first-party data to target customers.
How Does Zero-Party Data Different from Third-Party Data?
Given how companies predominantly interact with their customers, a large percentage of customer insights (for example, what the customer is and isn’t interested in) are derived from external third-party data. Whether online activity, third-party cookies, affiliate networks, social media interaction, etc. Whether through
For example, most retailers use information collected about consumers when consumers visit various websites. Third-party data is collected when searching for or clicking on an item to possibly purchase and is stored in the consumer’s web browsing history. Retailers can then share or purchase this browsing history with other businesses or affiliates. However, web browsers like Apple’s Safari and Mozilla’s Firefox have already eliminated third-party cookie tracking, and others like Google Chrome will phase out third-party cookies in 2023. Therefore, from an online web browsing history perspective, the data approach of third-party Large companies has been questioned and is now even greater in the changing virtual reality that many have adapted to due to the COVID-19 pandemic.
While many companies still rely on third-party data, the biggest weakness is making assumptions about what interests the customer. Just as retailers track activity on websites, assumptions about which product the customer is looking at (for example, whether they are going to buy a particular product or are looking for similar products) are segmented through advertisements and are often visible. time in social media feeds. Think about how many times you’ve seen a product you found on Amazon.com and didn’t want to appear on Facebook. The key message here is that zero-party data makes the customer responsible for what they want or don’t want the company to remember about them, while third-party data is based on assumptions and bypasses confirmation entirely.
What is the Ultimate Goal of B-to-C Marketing?
As companies continue to transform their physical business model into a virtual one, it is important to invest in and develop a well-thought-out zero-party data strategy. Customers want more power in their relationships with the companies they buy from, and companies need to engage with them through more personalized experiences to continue delivering high-quality service. To provide personalization to the customer, everything from products and content to advertisements needs to be specific to that person and brand specific. An important feature of zero-party data is that it is proprietary and no competitor has access to it. Moreover, the future of marketing also relies heavily on relationship-based, where the company must give full transparency about how it plans to use customer data and provide value in return for customers who share their data.
As a result, it will give customers control of their preferences, profiles, insights and consent data, leading them to continue to purchase only the company’s product or service and strengthen future relationships.
Jeff Jarvis is senior vice president of strategy and consulting at CouldNOW. Pioneer and leader in customer approval, preference and regulatory compliance solutions.