5 ways to proactive data generation – eCommerce Magazin

The Term introduced by Forrester “Zero Party Data” is the name of customer data that is intentionally and consciously shared. The main reason customers share personal information with companies is because they are interested in getting in touch with them. Through different channels and processes, companies can encourage their customers to share their data and thus circumvent the ban on third-party cookies. Before using zero-party data, it is important to ensure that companies are collecting this information themselves. Browsers like Safari, Firefox and soon Google are changing the way they collect customer data, which will change the tracking of advertising performance in the future.

Zero-party data as a replacement for third-party cookies

Zero-party data comes directly from a company’s existing or potential customers. In this way, qualitative and precise data of the direct target group are recorded. This provides insights into preferences (address, product features, channels, etc.) for future business decisions. The Use of zero-party data offers companies a cost-effective and data protection-compliant alternative to other methods, as data collection usually already takes place via their own system. In contrast to second or third party cookies, there are no additional costs for the collection.

Five Ways To Collect Zero Party Data

Here are five practical ways to collect zero-party data from customers:

  1. Use queries for registrations: Customer-facing products and services can use registrations to generate zero-party data. With this approach, companies ask customers relevant questions, which primarily serve to further align and design the services. During registration, questions can be asked such as the motivation for registration and goals or requirements that the product is intended to meet.
  2. Website as a classic tool: Companies can use their own website as a central platform for first-party data. Users are given the option to choose which communication type and information (event invitations, webinar offers, blog articles, etc.) they prefer.
  3. Emails and preference settings: An interesting way to collect additional zero-party data is to query the customer’s date of birth. Companies can then present selected offers on this day. A clear and well-organized email preference center also makes it easier for subscribers to receive emails on topics that really interest them.
  4. Social media as a survey method: Other social media channels are following suit. But above all on Instagram, companies can interactively get in touch with existing and future customers through surveys. Here you can get insights about preferences or opinions. Additionally, taking a survey on social media is one of the fastest ways to get zero-party data.
  5. Generate zero-party data on site: There are a number of ways to collect in-store customer information. One example of this is the classic customer card. Providers should also create incentives for customers to use the card when they make a purchase. This gives companies insights into their customers’ purchasing preferences.

High willingness to pass on data

The willingness on the part of consumers to share their data with companies is high if the data transfer proves to be meaningful and added value for the user himself. When querying zero-party data, it is important to communicate openly about the use of the data and not to overwhelm the customer with too many questions about their preferences. The implementation of regular queries at intervals is appropriate here. (sg)

Also read: Customer experience: retailers are investing in new sales channels in 2021