Zero-Party Data vs. First-Party Data: Understanding the Difference

There are different types of data that drive personalized experiences, such as third-party data, first-party data and zero-party data. All types of data are important and have their own unique purpose. But for this post, we are going to focus on zero-party data and how it relates to first-party data. As this Forbes article suggests, “zero-party data is the new oil.” Therefore, it’s important that you know how and when to utilize it.?

Data that Drives Personalized Experiences?

To give you a frame of reference, here are the main types of data that drive personalized experiences:?

• Third-party data. This type of data is obtained or purchased from sites and sources that aren’t your own. Third-party data typically includes demographic information, buying signals, firmographic information and other data obtained from CRS and POS.?
• First-party data. First-party data usually refers to behavioral data that a company collects directly from its customers. It includes demographic information, interests and location.?
• Zero-party data. Also known as explicit data, zero-party data is information shared voluntarily by customers. Organizations can collect this data from website polls, surveys, member applications and more.?

Differences Between Zero-Party and First-Party Data?

Zero-party data is shared willingly by the customer, though companies typically offer rewards. For example, let’s say that you visit a website and want to learn more about a particular service. In exchange for a free webinar, you’re asked to share your name, email and phone number. This is zero-party data.?

This data is beneficial because it comes directly from you, the customer. The company can then use this information to tailor product recommendations, messages and offers that you will find relevant and useful.?

First-party data is also important, but it’s not necessarily given voluntarily. Instead, it tracks users as they interact with websites, apps, products and social media channels. To collect this data, web developers place a code on the company’s media assets to track user activity.?

Benefits of Zero-Party Data

All data is important, but there are some unique benefits to gathering zero-party data. These benefits are why zero-party data is referred to as ‘the new oil’ or ‘the new electricity.’?

• No need to analyze. First-party data requires you to analyze the information to make decisions. But zero-party data does not require this. It comes directly from customers, so it’s clear and concise.?
• Accurate information. Generally speaking, zero-party data is more accurate than first-party data because it comes from the customer and isn’t open to interpretation.?
• Customer awareness. When customers share zero-party data, they are doing so willingly and with full awareness. This means you can spark genuine conversations and personalize offers.?

Start Gathering Data Today!?

To summarize, zero-party data is data that customers willingly share with businesses and organizations. It’s relevant, accurate and collected from surveys, polls, membership applications and more. It also presents no privacy concerns like first-party data does. If you have more questions about any of the data in this article and how to best gather it, contact WSI Star Web Solutions today.?