At a time when personal data is becoming increasingly difficult for companies to collect, the importance of zero party data is becoming undeniable.

In this article, we explain the differences between first and second party data. We also share their role in your marketing strategy and the most effective ways of collecting and activating them.

SUMMARY

• What is Zero Party data?
• Zero-party data vs first party data and second-party data
• How can brands use this type of data?
• What are the best ways to collect zero-party data?
• The challenges of zero party data

It’s the information that comes directly from consumers. Consumers voluntarily share personal data (such as contact details or purchasing preferences) with companies.

Zero-party data can be considered the least intrusive form of data collection. Users give their explicit consent by sharing it directly with organisations. But it’s also valuable information, collected directly at source.

Some people consider zero-party data to be conversational data. This is all the information that a brand could learn about its customers by talking to them about their background, their purchasing history, their preferences, etc.

By engaging in this type of dialogue with their audience brands create a bond with consumers. They are also able to enhance their customers’ opinions by offering them a better shopping experience and a more relevant offer.

Why is Zero Party data so important?

Marketing based on this data is more personalised and effective than marketing based on data that does not come from the main stakeholders.

But beyond these considerations about the quality and reliability of the data collected, companies will soon have few alternatives to zero-party data.

The collection of third-party data, in particular via cookies, is set to disappear. European legislation is increasingly restrictive in terms of confidentiality and respect for consumer privacy. But operating systems, including Apple and Google, also significantly restrict companies’ access to user data.

To give just one example, Apple no longer allows data aggregators and social media platforms such as Facebook and Instagram to collect data on iPhones and iPads. These account for around 60% of the mobile devices in use today.

First-party data

There is often a tendency to confuse the two, as zero-party data long been considered a subset of first-party data. However, it is now considered that first-party data is collected via a user’s standard interactions with its website, application or online payment module.

The difference also lies in whether the information shared is compulsory (e.g. address in the purchasing process) or optional (for zero parties).

When a customer fills in their address when completing a purchase this is first-party data. But if the company sends out a post-purchase feedback form asking customers whether they enjoyed their experience, this is zero-party data.

Second-party data

Second-party data is another company’s first-party data, which it has resold to other organisations. In the best-case scenario, this information comes from a partner:

• relevant (whose audience is similar to that of the company that purchased them)
• and trust (to ensure they are accurate and of high quality).

This data source helps to make up for a lack of information. It may be of interest to brands that have just launched or that want to conquer a new market. However, it comes at a price, requiring greater vigilance (to ensure compliance with the RGPD). Not to mention the fact that they will never be as reliable or as relevant as zero or first-party data.

There are many ways in which e-commerce and retail brands can exploit zero party data. Here are just a few examples:

• Propose more relevant content by finding out about the buying intentions and problems faced by prospects;
• Create personalised emailing flows to activate your prospects by sending them offers that match their interests;
• Understand what type of product/service/feature is of most interest to your audience and use this information to guide future innovations;
• Adapting your online or in-store experience based on the friction encountered by consumers. For example, a company may realise from its post-purchase form that delivery conditions are not clearly enough indicated during the ordering process. By adapting its payment form (for example, by adding this information at the first stage), it will be able to increase its conversion rate.

• The quiz : this fun format enables companies to gather detailed information about their customers’ expectations. For example, a beauty brand can offer a quiz to all its new visitors to diagnose their needs and guide them towards products suited to their skin type;
• Chatbots: conversational pop-ups enable brands to talk to their customers, offer them advice or inform them of any promotions they may be taking advantage of;
• Post-purchase surveys : sent in the order confirmation email, these forms are particularly useful for improving the customer experience. They can also enable the company to suggest more relevant additional sales. By making them attractive with a post-purchase game, brands can also hope for a better conversion rate.
• Polls on social networks: A simple and effective format for asking customers for their opinion. Polls are particularly effective on Twitter and Instagram, where they can be used to generate 20-40% engagement.
• Competitions: brands can also engage their community by offering them the chance to take part in a competition. To enter the competition and hope to win a gift or discount, players will need to enter their personal details;
• Marketing games. Certain Playable Marketing mechanisms (such as the battle, the gift finder or the swiper) can themselves be used to collect zero party data. By having to choose between two products/inspirations, consumers will tell the company what their preferences are.

The challenges of zero party data

It represents the future of data collection. But it also presents challenges.

One of the biggest challenges of zero party data is balancing personalisation and confidentiality. Companies must therefore ensure that they only ask for relevant information if they do not want to be seen as intrusive.

Attention should also be paid to addressing the issue of data security. It is crucial to put in place solid measures to protect your customers’ data from any cybersecurity breach (via encryption or the use of robust storage methods).

Finally, the question of veracity arises even with zero-party data. Even if it comes directly from customers, 36% of marketing specialists are concerned about their accuracy. To overcome this doubt, the solution is to offer an incentive whose value depends on the accuracy of the information shared.

For example, the more honest a customer is about their preferences or needs, the more likely the brand will be able to make relevant product recommendations. There are also tools that can be used to check emails and postal addresses to ensure that valid data is being collected.

Collecting zero party data means increasing the number of interactions with your audience. To make it easier for you to communicate with your customers, rely on our Playable marketing mechanisms to make sharing information more fun and engaging!

Cookies are endangered species. New regulations on the collection and use of personal data are making it difficult for marketers to understand and predict the behavior of their audience.

However, there are solutions for navigating this digital world without cookies. In this article, we present one of the most effective levers available to brands: first-party data.

SUMMARY

• What are cookies and why are they so important in marketing?
• Why are we heading for a world without cookies?
• What data collection practices should be favoured?
• First-party data: the best solution to the end of cookies?
• Gamification as a solution for collecting 1st party data

Cookies are information files stored in web browsers. In practical terms, they enable us to track a user’s online behavior and provide companies with information. They can then use it to personalise their customer experience or optimise online advertising.

More specifically, there are 4 types of cookies:

• Internal cookies: which are hosted on the site and do not share the information obtained with other platforms;
• Third-party cookies: (the most controversial) the latter send the data to the platforms of online shops (in particular advertising technology solutions);
• Temporary cookies: only stored in the browser during the user’s session;
• Permanent cookies: which store information for future visits.

Cookies are therefore a valuable source of information to analyse the behaviour of their potential customers and better understand needs. They help to improve the purchasing process by providing information at the right time. They can be used to optimise online marketing campaigns by segmenting the target audience.

Users are increasingly concerned about the protection of their personal data. They are aware that they are being tracked online (for retargeting purposes) and are demanding transparency when it comes to the collection and use of data.

According to a study by Pew Research, 81% of Internet users believe that collecting their data presents more risks than benefits.

In response to user dissatisfaction, browsers have begun to delete third-party cookies. This is the case for Google Chrome, but also for Safari and Firefox. The same applies to mobile applications, especially since the launch of iOS 14, which has introduced radical protection for user data.

New frameworks have also been put in place to regulate or even abolish the use of cookies altogether.

• Article 5(3) of Directive 2002/58/EC. Lays down the principle of prior consent from the user before information can be stored on device or before information already stored can be accessed.
• The GDPR – General Data Protection Regulation (and in particular articles 4(11) and 7) reaffirmed the need for user consent. It specifies that this consent must be free, specific, informed and unambiguous. In addition, users must be able to withdraw their consent at any time, with the same ease with which they gave it.

For brands, data protection poses a number of challenges. It is becoming more difficult to collect data, and therefore to personalise content or even optimise advertising budgets.

To get round these obstacles, companies are turning to alternatives that no longer rely on third-party cookies. This has several advantages:

• That of owning your own data and no longer being dependent on third parties.
• Companies are active in collecting data, which enables them to gather authentic information. In fact, this data is shared directly and transparently by their customers or prospects (in exchange for personalised offers or discounts).
• Organisations are taking a more ethical and respectful approach. They therefore create a relationship of trust, in which customers are informed about the data they share, how it is used and the benefits they can derive from it.

With the arrival of the GDPR, not to mention the tightening grip of the GAFAs on the global advertising market, companies have begun to refocus on first-party and zero-party data.

First-party data corresponds to information collected directly by advertisers and medias. It includes declarative data that is shared by users (when they fill in a form or sign up for a service/subscription). 

This data is therefore known as ‘proprietary’ data, as opposed to second or third-party data (collected and shared by third parties).

When it comes to acquiring data, companies will be concentrating on their internal databases. But also on new advertising technology solutions (those powered by gamification).

Thanks to first-party data, they can continue to collect data. But above all, they will have access to precise and effective information, whether for email automation, the sending of web notifications or social media campaigns.

By respecting consumer demands for transparency, brands increase the likelihood that their audience will provide them more information. They will have confidence in the way their data is used. For emailing first party data, shared voluntarily and demonstrating an interest in the brand’s offer, will result in better open rates… It will therefore result in a better deliverability rate (i.e. fewer emails in the spam box).

Gamification (or playable marketing), the application of game mechanics to marketing campaigns, fits in perfectly with companies’ data collection strategies. Interactive, fun content is naturally attractive and engaging. It is therefore visible and generates more interaction.

To take part in the game, and hope to win rewards, prospects will be inclined to fill in a form. And therefore to share zero party data. But the game mechanics can be effective levers for obtaining information about customers.

Let’s take the example of swiper mechanics which involves scrolling through images according to your preferences. It then informs brands about the buying trends and needs of its target. This mechanism can use this first party data to make personalised recommendations or segment campaigns.

Conclusion

The end of cookies is an opportunity for brands to change their data collection practices. First-party data will enable them to obtain relevant and transparent information, and therefore to create and maintain a relationship of trust with their audience. To collect first-party data, rely on gamification and discover all our different interactive advertising formats!

In the age of ‘big data’, and given the huge amount of data to which businesses now have access, it is becoming crucial for them to put in place a relevant data strategy. This is especially true in a world where data is becoming an increasingly valuable currency.

The transition to GA4 (Google Analytics 4) was already shaping up to be a colossal challenge for marketing teams. But the latest earthquake to rock the data landscape is the imminent end of third-party cookies announced by Google for July 2024.

This transition, which has already been made by Apple and Firefox, is forcing companies to rethink their customer data collection strategy and therefore their marketing campaigns. In this article, we share some practical advice and effective levers for updating your data strategy.

SUMMARY

• Why do you need a data strategy?
• The 4 key elements of a data collection strategy
• How to develop your data strategy

In a world where lead acquisition costs and the cost per click of the main advertising networks are exploding, companies are being forced to rationalise their marketing efforts. They can no longer simply sail by sight and adjust their campaigns according to their performance, a posteriori.

To invest their marketing budgets in the right channels, on the right messages and with the right audiences, they need to base each of their decisions on hard facts. And these proven facts take the form of customer data.

These include a wide variety of information, but also of formats. Il peut s’agir de données démographiques ou comportementales, de fiches contact dans une base de données CRM, d’historique de ventes ou d’échanges avec le chatbot du service client, sans oublier les commentaires sur les réseaux sociaux.

Collecting data, in sufficient quantity and of good quality, is essential for :

• Make business decisions based on tangible, verifiable evidence;
• Anticipating consumer trends and meeting consumer expectations;
• Offer more suitable products or services;
• Personalise your message and offer a better customer experience than your competitors.

The challenge of personalisation in marketing

This last point is very important to remember. It is, 74% of consumers say they are frustrated by receiving marketing messages (in the form of sponsored advertising on social networks or email campaigns) that are not tailored to their needs.

Companies that don’t adopt a personalised marketing strategy are therefore more likely to be throwing their money away (by sending the wrong message to the wrong person). But they also risk devalue their brand image by giving consumers the feeling of being spammed and increasing their advertising burn-out.

But the key to personalised marketing is to have the right tools for collecting, analysing and activating customer data.

Any good data strategy needs to answer the following question: how do you collect data, ensure it is relevant and use it effectively?

Companies must therefore adopt a multi-dimensional approach that includes :

Relevant data collection tools

69% of consumers are more willing to interact with a brand that offers games or interactive marketing campaigns with prizes to be won. Companies therefore need to diversify their data sources by making the most of gamified experiences.

These are all the more relevant in a cookieless context. En effet, le marketing interactif offre des sources de données plus fiables et RGPD friendly. Les informations collectées seront considérées comme de first-party data, i.e. data shared directly by users with their explicit consent.

A data analysis tool

Collecting data is not enough. A good data strategy also relies on the systematic and meticulous analysis of this information.

The tool chosen by the company should preferably offer a visual representation. Data visualisation will enable all teams, even those least at ease with data, to draw relevant conclusions in terms of marketing strategy.

Identifying the right frequency to collect data

Brands need to be able to rely on relevant, regularly updated data. However, it is also crucial not to put too much pressure on users. Today’s users are more concerned about protecting their personal data.

To strike the right balance, brands can not only rely on relevant incentives to share data (such as the prizes in a marketing competition, for example). But they will also need to establish a marketing calendar to ensure that their various campaigns are sufficiently spaced out.

A data activation strategy

As already mentioned, a good data strategy should above all help the company to make better decisions. It will be used primarily to optimise its marketing efforts, in particular by delivering a personalised message to each customer and prospect.

A solution like Adictiz makes the most of the data collected. For example, companies can use it to segment their target audience, then send automated emails and personalised offers.

Now let’s get practical. Here are the 3 essential steps to develop a solid data strategy.

1. Define your objectives

Data collection can enable brands to optimise every stage of the conversion funnel. However, it is crucial to identify those that are the most strategic for the company, so that efforts can be focused in the right place.

A brand that has just launched, for example, could focus on lead generation. A company with a low repeat purchase rate, on the other hand, should concentrate its efforts on providing personalised offers to build customer loyalty.

2. Create targeted collection campaigns

Depending on the objectives set and the audience, the company can then run targeted campaigns. The key is to diversify sources, using a mix of :

• digital: via competitions on social networks, as well as post-purchase satisfaction surveys by email;
• and retail: via interactive terminals or in-store events, for example.

3. Test, analyse and optimise

A good data strategy serves all stages of the customer journey, from identifying new leads to conversion levers, not forgetting post-purchase loyalty. To measure the quality of your data and the relevance of the marketing decisions you make on the basis of it, AB testing is crucial.

Defining relevant KPIs will make it easier to analyse the performance of each collection scenario. These metrics must, of course, be aligned with the objectives chosen for the data marketing campaign.

The company can then put in place a virtuous loop consisting of :

• testing new strategies,
• analyse their results,
• and continuously improve its data collection process.

Adictiz supports you at every stage of your data strategy. From creating and distributing collection scenarios to analysing and activating your customer data, find out more about our all-in-one Playable marketing solution.