Get all the insights here as we dive into Zero Party Data vs. First Party Data. Covering what they have in common and how they differ.
We know that Zero Party Data (also know as Declared Data) is collected directly and voluntarily from consumers and frankly, it is the most effective way to truly know your audience. Zero Party Data has quickly become a huge buzzword in the marketing and advertising industry. It is information shared directly with you from your customers as they hand over their interests, passions, preferences and intentions.
Think about it this way, it is everything you would tell an employee at a store who is helping you find a gift for a friend (size, gender, budget, occasion, etc). It's the ultimate value exchange between the company and the consumer. Collecting this data is done through surveys, customized product recommendations, quizzes and polls.
Switching gears to First Party Data, we know that this type of information is collected through your audience instead of being sent to you from a Third Party. First Party Data is gathered through website activity, purchase history, email engagement and sales interactions.
We can break it down like this, when you see a customer has added a new winter jacket into their cart, you can make an educated guess that they will be purchasing that item in the near future. This allows you to cater advertisements to their personal preferences in hopes of them completing their purchase.
Zero Party Data and First Party Data directly collect key attributes from your customer. They both give you an answer as to what consumers are looking for when they visit your website.
Let's face it, it's clear that both types of information have extreme value and lead to higher conversion rates, higher customer engagement rates, better customer experiences, etc. As there are many common denominators between the two, it is also safe to say that they have a key difference. While capturing Zero Party Data, you are going directly to your target audience asking them upfront for their information, leaving no room for any assumptions or inferences. Capturing First Party Data, consumer are giving you permission to collect information about them as they browse through your website. It is the difference between someone telling you they are shopping for that winter jacket, and just seeing someone add a jacket into their cart.
First Party Data and Zero Party Data are the most valuable types of information a marketer can get their hands on. To be exact, 43% of CMO's are shifting their focus to a marketing strategy that solely focuses on capturing Zero and First Party Data. Reason being that companies are seeing major increases in customer engagement, conversion rate, acquiring more qualified leads, and building long lasting relationships with their customers.
Capturing this data has truly been defined as a winning formula and eliminates the need for any other type of information. This is the new method for success and now is the time to capitalize on it. Click here to get started on your journey.