Zero-party data, sometimes referred to as explicit data or declared data, is a type of customer data that is willingly and proactively shared by individuals with your business or organization.
Unlike first-party data, which is collected through the observation of customer behavior, zero-party data is explicitly provided by the customers themselves.
This data is valuable because it reflects the preferences, intentions, and interests of individuals accurately, as it comes directly from them.
- Proactive Sharing: Zero-party data is voluntarily and intentionally shared by customers. They provide this information with a clear understanding of how it will be used often in exchange for personalized experiences, incentives, or better service.
- Explicit Information: Zero-party data can include personal details, preferences, and opinions that individuals are comfortable sharing. Examples may include their product preferences, dietary restrictions, fashion choices, and communication preferences.
- Accuracy and Trust: Because customers willingly share this data, it tends to be more accurate and reliable compared to other types of data. There is a higher level of trust associated with zero-party data.
- Personalization: You can use zero-party data to create highly personalized experiences for customers. By understanding their preferences and interests, you can tailor your offerings and marketing messages more effectively.
- Compliance and Consent: Gathering zero-party data typically requires clear consent from customers. You need to ensure you are transparent about data usage, privacy policies, and customer rights, aligning with data protection regulations.
Examples of zero-party data include:
- Preference Surveys: Customers voluntarily provide information about their product or service preferences through surveys or questionnaires.
- Subscription Preferences: Opt-in choices for newsletters, email updates, or specific types of content.
- Account Settings: Customized settings in user accounts that allow customers to specify their preferences, such as notification preferences or language preferences.
- Product Reviews and Feedback: Customers share their opinions, reviews, and feedback on products or services directly with the company.
- Wish Lists and Favorites: Customers create wish lists or mark products as favorites on e-commerce platforms.
- Profile Information: Users provide personal information when creating profiles on websites or apps, including their name, gender, date of birth, and location.
Zero-party data is particularly valuable if you are looking to create personalized marketing campaigns, improve customer engagement, and enhance the overall customer experience. However, you must handle this data with care, respecting customer privacy and using it in ways that align with customer expectations and legal requirements. Violating customer trust or privacy can have negative consequences for your business’s reputation and legal standing.