Zero-party data - More than just a buzzword
Are you an e-commerce store owner? Do you have any suggestions on improving the content we deliver?
Relax, that was just a cheeky attempt to introduce today's topic. Hello, and welcome back to our newsletter! This week we discuss zero-party data! Ring a bell? It's okay if it doesn't. It soon will.
First, let’s talk about data.
Data, specifically user data, is essential to provide customers with shopping experiences tailored to their preferences. So far, three different types of data have been used:?
Where data goes, privacy follows
User data is synonymous with privacy. However, the above data collection methods fail to address the most critical aspect of privacy, "explicit consent from users."?
Multiple laws and regulations, like GDPR, PECR, and the recent California Privacy Rights Act, double down on user privacy and consent. If you resort to sly techniques to obtain data, you are toast! Violating any of these laws means you end up paying a fortune.?
As far as tech giants go, we know all too well about Apple's tough stance on data privacy. Meanwhile, Google has hinted at a phase-out of third-party cookies by 2024. Though Google has been practicing the art of procrastination with cookies and consent, it won't be long before they empty the cookie jar. I reckon a Joey in this era would probably have shared his food without consent but not his data.?
Jokes apart, does this mean we are heading toward the end of personalization? Absolutely not!
All hail Zero-party data
A term coined by Forrester Research in 2020, it refers to information that customers willingly provide in return for a highly personalized shopping experience. Unlike other methods, zero-party data is information that is obtained with users' explicit consent. You overtly ask your customers for their personal information, and if they oblige, you provide them with a seamlessly personalized shopping experience. Now, what makes it special, one may ask?
Trustworthy
You collect it directly from customers rather than through indirect sources, making it more reliable and accurate.?
Non-intrusive
While data collection methods that violate privacy are frowned upon by regulatory bodies, zero-party data is a safe way to obtain information without breaking these laws.?
Personalization-on point!
This data points straight to customers' preferences and is not based on inference. You don't assume a particular customer likes red because they browsed for a red dress but because they told you so! You no longer have to second-guess what’s on their mind. Instead, you offer them exactly what they want.?
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How to collect zero-party data?
You can get your hands on zero-party data in many ways based on your needs. Here are some methods you can use:
Account registration form
When a customer first visits your store, you can make them fill up a form containing their personal details and general shopping preferences.
Social media polls and surveys
You can find out the general trend among customers before you release new products through polls and surveys asking for their suggestions.
Quizzes
If you run a store that sells beauty products, you can frame questions to understand a user's skin type and other specific details to suggest products that perfectly suit their needs.
Reviews
You can ask customers to review your products and website, ask what they love about your brand, and suggest areas that need improvement. Remember to sprinkle some discount occasionally to make such activities worthwhile. But most importantly, ensure you provide them with the customization they expect.?
User data is indispensable in the realm of e-commerce, and zero-party data is a reliable way to obtain sensitive customer data without being intrusive. That's all for this week, folks! We will be back with more e-commerce updates. Over and out!