What is Zero-party Data and Why You Need It

We’ve all heard the warnings regarding the death of third-party cookies. Yet, with Google delaying the end of support of third-party cookies until 2024, it can be tempting for marketers to view this announcement as a non-issue.  

Unfortunately, it’s not. 

If your brand still heavily relies on third-party cookies, this could have dire consequences on your marketing strategy and your ability to engage with your customers. Collecting zero-party data is a must-have for brands who wish to remain competitive. 

Remind Me Again, What’s Happening to Third-party Cookies? 

Rising concerns surrounding data privacy have led to changes regarding how marketers can track consumers’ data across the internet.

Before the 2019 announcement from Google where the search engine giant announced it would no longer be supporting third-party cookies, marketers could rely on cookies being placed on external websites to gather information about consumers. 

The issue with third-party cookies is that consumers did not voluntarily give their data to be used by third-party companies. And for brands, this data was often limited and unreliable since it needed to be collected themselves. Mozilla, Firefox, and Apple Safari have all since parted ways with the use of third-party cookies. But a major player who accounts for 62 percent of total browser usage still allows third-party cookies until 2023  - Google Chrome. 

Google Chrome is a website browser powerhouse and accounts for the majority of all website browsing traffic in the U.S. -  it means marketers will no longer have access to a majority of consumers’ data nor can they engage with consumers using these methods.  

It is a huge deal. The clock is ticking and time left for marketers to proactively switch to using zero-party data before time’s out. 

What is Zero-party Data? 

Coined by Forrester, zero-party data “is that which a customer intentionally and proactively shares with a brand. It can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize [them]."

It means zero-party data is essentially the information you collect from consumers who willingly fill out forms created by your brand. 

The ways marketers can collect zero-party data are endless. It could be a customer registering their new riding lawn mower to a shopper subscribing to an email list of  attendees registering for an upcoming event. 

To further sweeten the deal for consumers to volunteer their information, your brand can harness the power of progressive profiling, which only asks the questions vital to that moment in time. As the individual goes through the customer journey, your brand can collect more information as time goes on.

Better Data = Higher Revenue and Brand Loyalty

Using zero-party data is a win-win for both your brand and consumers. For example, 80 percent of consumers are more likely to purchase from a brand that offers a personalized experience. With a trusted repository of zero-party data, marketers can make the customer experience highly personalized and witness higher revenue and brand loyalty for their business. 

Loyal customers are the creme de la creme. Once customers have several positive experiences with a brand, they’ll demonstrate their loyalty. According to Forbes, millennials are 28 percent more likely to remain loyal to a brand if they receive personalized communication - and that only happens when marketers use the information about their customers through zero-party data. 

One way marketers can collect customer insights and thus personalize the experience is through Lumavate’s Audience and Messaging. When users complete a mobile opt-in form, for example, the information goes directly into Lumavate’s Audiences and Messaging. Marketers can then segment individuals based on title, location, interests, etc., and curate messaging relevant to each group. 

Take E.L.F.’s loyalty program as an example of a brand proactively switching to collecting zero-party data and reaping the benefits. By having the mindset of proactively making the switch to collecting zero-party data, the makeup giant now has an incredible arsenal of insights they can use to enhance the customer experience with the now three-million individuals in their loyalty program. 

Make an Actionable Plan 

It’s time to get a plan together on how the post-cookie apocalypse will affect your brand. First, check out the numerous ways Lumavate helps marketers easily collect zero-party data and use it to drive revenue and brand loyalty.