Data is usually divided into 'first', 'second' and 'third' party data. These terms are often used in relation to market developments driven both by privacy legislation and by changes in consumer attitudes towards their personal data. Recently, Forrester also introduced the term "Zero Party Data".
But what exactly is behind these data concepts? And why is zero data and first party data becoming so important to your business operations?
Zero data? The barometer of customer confidence!
Zero data and first party data are data that a company collects itself. First-party data is customer information that you collect directly from your own sources and channels: web behaviour, transactions (downloads, purchases, ...) or demographic data, including browsing and clicking behaviour.
Recently, Forrester introduced the term "Zero Party Data". This is data that a customer intentionally and proactively shares with a brand. It can be information from account preferences ("preference centre"), purchase intentions, personal context or how the individual wants the brand to recognize them. It is a barometer of the customer's trust in the brand and should be considered an important key performance indicator.
Why is it more important than ever to have a zero data and first party data strategy in place?
Soon, third-party cookies will disappear from Google. This means that, as a business, you will only have limited access to the 70% of internet users who use Google as their browser. This will have a major impact on existing marketing activities such as programmatic media, cross-site retargeting, like-for-like campaign creation, impression capping and measurement, analytics and reporting. But it also means a competitive advantage for companies that have collected their own data and can create intelligent personalised campaigns.
The benefits of collecting zero and first party data
- Quality and accuracy : as the data comes directly from the individual, you can be sure that your customer wants to hear from you.
- Relevance : Based on data preferences, you can determine exactly how your customers want to interact with your brand.
- Cheap : Since it already exists in your systems, collecting this data is very cost-effective. Unlike other types of data collection (second and third party), you do not pay for zero data because customers simply hand it over to you.
- Compliance:with zero and first party data, you run almost no risk, as you know the source and how the data was collected.Just make sure that your data is collected, managed and used in compliance with GDPR rules and data quality!
- Important : do not ask for too much information at once, but spread the collection of this type of data over time.
But sometimes your own data is not enough to effectively achieve your business/marketing objectives. And then you can use second or third party data. Readmore about second and third party data.
