“Data is the new oil,” this sentence has long been a classic in digital marketing. But not all data has the same value. While companies used to rely heavily on third-party data and cookies, today the focus is on data protection, trust and relevance. The central question is therefore: How can companies collect and use relevant customer data without opaque tracking technologies or legal grey areas?
The answer lies in a privacy-compliant and user-friendly approach: Zero-party data.
What is zero-party data?
Zero-party data is information that customers consciously and actively share with a company, for example by participating in a survey, signing up for a newsletter, or by choosing personal interests on a website. Unlike data derived from customer behavior, there is no need for interpretation: Users themselves specify what they want, prefer or plan.
Especially in local marketing, this is how valuable insights into the needs of individual target groups in a way that transparently and compliant with data protection is.
What makes zero-party data different from other types of data?
In marketing, there are four basic types of customer data: zero, first, second, and third-party data. The zero-party data is characterized by the fact that it provided explicitly by the customer , e.g. via forms, surveys or product recommendation tools. In contrast, first-party data is based on direct user behavior, i.e. click behavior on a website or purchases in an online shop. Second-party data comes from partners with whom the company shares data, while third-party data comes from external sources, such as from advertising networks or via cookies, which are increasingly being restricted by regulations. *
In practice, it has been shown that: The closer the data is to the source, the higher its quality and their legal security.
Why zero-party data is so important in local marketing
As already mentioned, the biggest added value lies in the direct relationship between company and target group. When people voluntarily reveal information because they see added value in terms of content or functionality, a trusting basis per personalized communication.
For locally active companies with decentralized structures, is that particularly valuable. Instead of anonymous amounts of data from third-party sources, they receive specific information that locally relevant are, such as for events, campaigns or individual product recommendations.
Where does zero-party data come from and how can it be collected?
Zero-party data is created wherever there is a genuine exchange between brand and user. Formats in which people receive clear added value, such as information, offers or the opportunity to participate, are particularly effective.
Typical sources include:
- Interactive forms (e.g. for inquiries, test drives or call-back requests)
- Newsletter registrations with selection of interests
- Product finder or Quiz formats
- feedback surveys after purchase
- downloads of E-books or brochures
- Sweepstakes and Giveaways with participation data
This data can be generated at many touchpoints, whether on websites, in apps, in call centers or at the point of sale. The key lies in the targeted bundling and utilization of this data.
What companies can learn from using zero-party data
Anyone who knows that a customer regularly takes part in surveys or prefers certain product categories can actively and specifically address them. Companies that have such data shared voluntarily According to the article, systematically record and make it usable in CRM benefit from higher opening rates, stronger customer loyalty and more effective campaigns, particularly at local level.
What the Local Brand X Local Marketing Platform makes possible
So that zero-party data in the company also be used effectively, does it take a technical infrastructure, which combines collection, processing and distribution. Die Local marketing platform can be the basis for this, with which the marketing center can provide targeted measures based on which sales partners and locations collect data easily and in compliance with GDPR and display it in a personalized way.
If you would like to learn more about zero-party data or its use in the local marketing platform, feel free to contact us. We are looking forward to the exchange.
