Zeroing in on zero party data: Embracing privacy and personalization

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The past two years have seen marketers adjust to changing consumer expectations. Recent privacy changes at big tech companies as well as new privacy legislation being introduced at the state and federal level demonstrate this.

With 79% of Americans concerned about the way companies are using their data, and distrust continues to grow, brands must now pivot away from previously relied on data tactics and evaluate new privacy oriented strategies. This will allow brands to reach consumers in a way that is tailored to their needs. The challenge is that many organizations don't have to rely on their own data sources anymore. Building zero and first-party data assets, forming compliant second-party relationships, and allocating more resources to contextual marketing tactics are included.

The burden is now with marketers. New strategies that steward successful marketing programs are needed. There are three ways to get started.

Placing privacy at your core

Consumers are becoming more aware of how brands use their data, which has led to calls for stronger data privacy protections. Consumers are concerned about businesses misuses their data and are reluctant to share it because they want to keep their privacy.

It's time for marketers to revisit their models and put consumer privacy at the forefront. A brand can either build trust or erode it.

More than two-thirds of consumers want to engage with a brand in a way that's tailored to them, but nearly half of them aren't comfortable sharing their data to get that information. Marketers are at a crossroads. They don't have access to strong data and insights about an individual's preferences and behaviors. Zero-party and first-party data are the solutions.

Shifting brand priorities to zero and first-party data

To deliver and exceed customer expectations, brands need to shift away from third-party reliance and look towards data they have already collected. Many brands already have the information offered by cookies.

The concept and practice of zero-party data has been around for a long time. Zero-party data is an innovative form of first party data that a consumer shares with a brand. This is starting to become the champion for marketers.

Zero-party data can be found in a lot of different places within the organization. It is possible for brands to get new data and insights on their consumers by revisiting key channels. New and more reliable data can be found through these channels. Consumers are willing to give up data in exchange for a better experience with a brand.

The gap between data and actionable insights can be bridged by collecting these many data points.

Acting on data and delivering personalized brand experiences

Customers are more likely to shop with brands that offer good offers. Zero and first party data can be operationalized to achieve this. By using data mining to uncover previously untouched variables, brands are able to design a tailored customer experience. You have implied that you will act on it when you ask for it, so it is your responsibility to do so.

Consumers don't need to be loyal to one brand with so many options. More than half of consumers say they will become repeat buyers of a retailer if they receive a personalized shopping experience, according to Sales Force. You can create a differentiated value for your consumers through a more personalized experience if you expand your understanding of what they value the most.

Your brand: Putting privacy and personalization together

To respect consumer privacy, brands need to demonstrate to consumers that they value their communication preferences, rights, and personal data, and use it in a way that is beneficial to them. The most success will come from organizations that place data privacy at the center of their operations. Driving engagement will become more difficult but it is important work.

It is time for marketers to integrate data privacy into their brand's identity and interact with consumers in an authentic, personalized way.

It's time for marketers to start working.

The Senior Vice President of Data, Insights, and Customer Experience is Todd Hatley.

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