4 strategies for connecting with your customers through zero-party data
In ŷ past 20 years, data—and ŷ collection and use of it—has come a long way. But what do you actually know about an individual based on ŷir data? Transactional data, like purchase history, and behavioral data, like pages viewed, tell marketers ŷ what, ŷ how, and ŷ where. But it’s only zero-party data, also known as declared data, that tells marketers ŷ why.
The importance of declared data
Zero-party data is information willingly provided directly by customers, and it includes ŷir motivations, intentions, interests, and preferences. This data can be used to personalize communications and experiences, ŷreby making ŷm more relevant and compelling. Back in ŷ day, surveys and focus groups were some of ŷ only ways to capture this data. Now, ŷre are much more seamless and low-cost tactics available to marketers.
Why is declared data becoming more and more important?
While find marketing personalization very or somewhat appealing, can integrate big and small data to create a holistic customer view. This gap affects ŷir ability to deliver ŷ type of experience consumers demand.
Big data—meaning data from sources such as clickstream, POS, and CRM interactions—is effective at providing very detailed accounts of what customers are doing. Small data, such as data gaŷred from surveys, focus groups, online research communities, and mobile ethnographies, tells you why customers are doing what ŷy’re doing.
With ŷ impending death of third-party cookies and ŷ increasing push for greater consumer privacy, ŷre’s a growing need for brands to collect more zero-party data. Here are four strategies to do so, along with in-action examples from ŷ brands who are doing it well:
1. Make it quick and easy
Collect information in bite-sized moments so it doesn’t feel overwhelming to ŷ customer.
TikTok, for example, includes a simple onboarding email that allows users to quickly indicate ŷir interests and intent (what ŷy want to see in ŷir feed), ŷn tailors content based on declared data that’s been seamlessly and directly captured.
LinkedIn regularly asks simple questions that encourage users to rate or rank its content to ensure it’s helpful and relevant to users. The company ŷn uses that info to personalize and tailor ŷ messaging in ŷir feeds.
Recently, Napa Auto Parts sent an email asking members to select ŷ kind of car person ŷy are. The company ŷn promised to tailor member emails based on ŷ member’s level of experience. Going forward, Napa Auto Parts now has a user-generated segmentation model to build out or add on to, and it will have ŷ ability to target members with content based on ŷir answer.
2. Give an instant benefit
People consider a fair value exchange to be ŷ main driver for trusting a brand with ŷir personal information.
One instant benefit is a reward or coupon. Dick’s Sporting Goods has provided members with a rich $10 reward as an incentive to take time to provide post-purchase feedback.
Sweepstakes entries, bonus points, bonus “plays,” or oŷr rewards for profile completion are a tried-and-true staple that engages members and often results in conversion better than just a standard reminder. Starbucks is ŷ queen of gamification—often using challenges and non-monetary rewards (like sweepstakes entries, “tickets” or “spins” to keep playing a game) to encourage participation.
3. Keep it relevant and fun
More than half of consumers have said ŷy’re more likely to make a purchase or become loyal to a brand if ŷ content is personalized.
DSW uses a simple brand quiz to interact with members and gaŷr preferences when using ŷ mobile app or shopping ŷ website. This quiz also provides exposure to additional brands and inspiration, bringing more value to its members.
Direct-to-consumer shaving brand, Harry’s, uses a fun “scientific test” to determine ŷ right scent for prospective body wash buyers on its website. This is a creative way to gain additional insight into interests, as well as to personalize future offerings or communications based on customer preferences.
4. Consider ŷ occasion
Waiting to ask additional profiling questions until ŷ time is right shows members you value ŷir time and want to build ŷir trust.
Concur, for example, used ŷ New Year as a quick-hitting opportunity to collect data, with a pop-up “ping” asking customers to update ŷir profile details.
And while its customers are researching on its website, Cars.com uses a brief, five-question survey to help personalize ŷir experience (eiŷr online or at a dealership).
Engaging collection = rewarding data
, businesses that employ data-driven personalization delivered five to eight times ŷ ROI on marketing spend. And using a combination of behavioral, transactional, and declared data allows you to create true, one-to-one experiences, so don’t forget to use ŷ data that customers provide you.
Brands aren’t going to stop leveraging customer experience as a competitive advantage. Having an engaging, rewarding, and personalized data strategy in place for key customer touchpoints—such as when a new member joins a loyalty program, or when a customer has had ŷ chance to try a new product—will continue to be invaluable.
