Why is Zero-Party Data a new favorite of top eCommerce brands?

Hello!?? and welcome to byte by ewiz commerce, a weekly eCommerce digest specially curated for digital transformation seekers. To help you navigate the complex world of digital commerce, we bring you insightful stories, trends, and strategies to drive your business's digital evolution.

As eCommerce evolves, so does the landscape of data privacy and personalization. The phasing out of third-party cookies and increased privacy regulations have steered us toward a more transparent, consensual form of data collection: Zero-Party Data (ZPD).

With online shoppers becoming aware and having more authority over their data, third-party data may soon become insignificant for personalized marketing.

On the flip side, consumers increasingly demand personalized experiences wherever they shop.

That’s where zero-party data fits in beautifully to help businesses retain a balance between marketers and customers.

What is zero-party data?

In the words of Forrester Research who coined this term in 2020:

"Zero-party data is that which a customer intentionally and proactively shares with a brand. It can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize [them]."

In simple terms, customers voluntarily share information about their identity, preferences, likings, and more. That is zero-party data.

Compared to traditional third-party data, zero-party data is definitive and reliable data directly from the customers, attached with their consent.

Why zero-party data matters now more than ever

In the context of eCommerce, zero-party data is not just a compliance solution; it's a strategic asset that can drive significant business value. Here's why:

? Authentic engagement: Zero-party data enables brands to build deeper, more authentic relationships with their customers by respecting their privacy and acknowledging their preferences.

? Enhanced personalization: With direct insights into customer preferences and intentions, brands can tailor experiences more effectively, leading to higher engagement and conversion rates.

? Data reliability: Directly sourced from customers, zero-party data is more accurate and relevant, reducing the risk of misinterpretation and misalignment in marketing efforts.

Practical ways to leverage zero-party data in eCommerce

How, then, can your eCommerce business tap into this goldmine? Here are some actionable strategies:

? Interactive experiences: Utilize quizzes, polls, and preference centers to collect valuable insights directly from your customers in an engaging manner.

? Tailored recommendations: Apply zero-party data to personalize product suggestions, content, and offers, aligning with your customers' explicit needs and interests.

? Segmented campaigns: Use the detailed insights from zero-party data to segment your audience more effectively, leading to more targeted and relevant marketing campaigns.

Gartner predicts that 75% of the world population will have modern privacy regulations protecting their personal data that will make alternative data collection methods more challenging.

Example of zero-party data and its use case

When customers lands on a apparel website, they get a pop-up asking specific questions like:

Are you buying for Him or Her??

What are you shopping for today?

By selecting any option, they share their style and mood preferences with the online store.?

It’s a data signal (zero-party data!) that allows the store AI to know what type and category of fashion you are interested in buying. Based on that, it serves you personalized recommendations.

Take action today

Shift towards a more sustainable, effective, and customer-focused data strategy by integrating Zero-party data into your business model. Start by engaging your customers in meaningful ways and using the insights to drive real value.

And there is no limit to what more amazing things you can do with this super-valuable data.

→ Use it to power your automated email campaigns

→ Run cost-efficient targeted ads

→ Steer buying journeys

Combining all these experiences boost conversions and sales on your eCommerce store.

?? Zero-party data represents a significant opportunity to align with modern consumer expectations while driving growth and loyalty in the digital age.

??? Share your thoughts

→ Facing challenges with third-party data restrictions?

→ What's your perspective on adopting zero-party data?

Share your thoughts and experiences in the comments.

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