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How customer data platforms can leverage zero-party data to boost CX

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Marketers are approaching a crossroads making use of their most significant digital asset: data. Because the blast of data multiplies exponentially every year, among the digital marketing industrys hottest tools to investigate campaigns and build lookalike audience profiles cookies is dying a slow death. Because the saying goes, As you chapter ends, another begins.

To comprehend how customer data platforms can leverage data to boost CX in a cookieless future, its vital that you understand the forms of audience data that marketers could work with. You can find three forms of audience data:

First-party Third-party Zero-party
Data collected through direct consumer engagement with a brandname.

For instance, a consumer visits a retail site to check out shoes; retailer collects the info.

Data collected by an entity which has no direct relationship with the buyer.

For instance, a consumer visits a retail site to check out shoes; analytics company collects the info.

Data knowingly shared by way of a consumer with a brandname within a value exchange.

For instance, a consumer visits a rewards program site and shares information to earn rewards.

Audience data definitions

Customer data platforms (CDPs) are designed to unify data for both customers and potential customers. In this vein, CDPs manage a number of consumer data. As the lack of third-party cookies will challenge marketers and agencies, first-party cookies may also be at an increased risk in an electronic world that’s increasingly mobile, app and privacy-driven. Because of this, cookie-free solutions will deliver another generation of consumer experiences. The mix of CDPs and zero-party data makes a compelling 1-2 punch for improving customer experience (CX) and innovating brand engagement because the consumer-led internet takes shape, a.k.a. Web3.

Zero-party data First-party data
Email, interests, occupation along with other registration information Behavior that enriches existing profiles and enables lookalike modeling; conquesting
CDP data unification opportunities

Zero-party data: Shared data is compliant data

Fortunately, the near future is here, and its own called zero-party data. In case you are confused about or sick and tired of data taxonomies, zero-party data is quite straightforward: It really is data a consumer shares directly and proactively with a brandname, per Forrester Research taxonomy. The intentional sharing of information addresses consumer data protection legislation (for instance, GDPR, CCPA, DCA) while establishing trust between a consumer and brand.


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Why would a consumer opt to share information such as for example their name, email and behavioral data with a brandname? The answer is easy: as the consumer sees value. An equitable value exchange between consumers and brands is long overdue and is really a core tenet of Web3.

Zero-party may be the data hero for marketers

Marketers love first-party data since it is owned by the brand. Unfortunately, first-party data is commonly limited in scale, whereas third-party data provides significant audience extension. Still, for anybody who spent some time working with third-party audience data, this is a mixed bag at best. Between data brokers and data privacy concerns, marketers already are navigating a complex, or even opaque, audience data ecosystem. Meanwhile, if attributes such as for example age and gender are generally incorrect on confirmed third-party profile, wouldnt marketers be better served allocating funds elsewhere?

Zero-party data is well-lit, trustworthy and compliant a genuine hero for the data-driven marketer. An integral value proposition of zero-party data is that it represents people-based data, instead of cookies, which represent audience-based data.

Data orchestration could make or break customer experience (CX)

If youve been the recipient of poorly timed or just misplaced marketing from brands that should know you predicated on prior engagement youre not by yourself. Global enterprises typically maintain a tech stack spanning sales, marketing and customer relationship management (CRM). To help expand complicate matters, agency partners that manage promotional initiatives may be dealing with another group of tools. Consequently, a consumer profile may exist using one or even more platforms. Understanding the stage of a consumer journey is crucial to delivering relevant information via paid or owned media, but data silos can make disjointed marketing messages that may damage relationships between brands and consumers. However, proper data orchestration paves just how for intelligent brand messaging and a confident CX.

CDPs enhance and extend marketing campaigns

In a global with only first-party data, marketers are limited by people that have a primary relationship making use of their respective brands. This relationship could possibly be by means of a first-party cookie, or ideally, a persistent identifier such as for example a contact address. While upselling and/or cross-selling work, neither is a practicable long-term technique for growth.

A CDP connected to zero-party data opens the entranceway to a number of marketing initiatives, including customer acquisition, conquesting and lookalike modeling.

So how exactly does an opt-in, shared data set work?

In the hypothetical example below, Acme Footwear is seeking to expand audience reach beyond its current first-party data. By leveraging a zero-party data set that’s integrated with a CDP, Acme Footwear can build custom campaigns to activate using its target demographic and psychographic.

Customer profile (market):

  • Gender: Male
  • Age: 25-30
  • Children: no
  • Gym membership: yes
  • Favorite pastime: sports

Zero-party data available:

  • Retail brand: multi-sport athlete
  • Beverage company: sports drink
  • Car rental company: age 25-30
  • Fitness club: member
  • Shaving brand: male
  • Theme park: no children

In the same way Acme Footwear can utilize various zero-party data to see campaigns, each participant can be in a position to cross-leverage data. By sharing data points from their respective data sets, most of these brands may use and reap the benefits of permission-based zero-party data to help expand their marketing objectives. Think about the CDP/zero-party data integration as a Web3 data cooperative providing a transparent and compliant opportinity for enabling campaign targeting and personalization in the brand new internet.

Much like Web2, the cookieless era of Web3 it’s still fueled by consumer data. CDPs and zero-party data will ensure proper consent from consumers while enabling more intelligent campaign targeting for brands. Business transparency and aligned incentives will be the paths toward improving CX.

Michelle Wimmer is Head of Ad Operations at


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