The E-commerce Blog
The E-commerce Blog
Imagine walking into your favourite coffee shop. Before you even say a word, the barista smiles and hands you your preferred oat milk flat white, just the way you like it. There is no guessing, no assumptions—just pure, personalised service.
This is the magic brands strive for today, and zero-party data is the key that unlocks it. Marketers now face challenges. Stronger consumer privacy laws and fewer third-party cookies are the main reasons. They need to deliver relevant, personalised marketing while respecting privacy boundaries. Enter zero-party data—information customers willingly and proactively share.
In this blog, we’ll examine zero-party data, explain why it changes marketing strategies, and discuss ethical ways to collect it. We’ll also cover practical steps for using it and why it is essential for your brand’s future.
Zero-party data refers to data that a customer intentionally shares with a brand. It includes preferences, purchase intentions, and personal contexts, as well as how the person wants the brand to see them.
Forrester says “zero-party data” is the info a customer shares with a brand willingly.”
Key examples include:
Zero-party data is not the same as first-party data that brands collect. It also differs from third-party data, which brands buy from other sources. Zero-party data is entirely voluntary, honest, transparent, and—most importantly—builds trust.
Data Type | How It’s Collected | Example | Trust Level |
Zero-party | Voluntarily provided by the customer | Preference quizzes | High |
First-party | Behaviour observed by the brand | Website browsing behaviour | Medium |
Second-party | Shared between partners | Loyalty programme data shared with airlines | Medium |
Third-party | Purchased from external sources | Data brokers | Low |
Major browsers like Chrome will phase out third-party cookies by 2025. This seismic shift will leave marketers scrambling for ethical alternatives to gather insights.
Zero-party data is a great solution. It helps create clear and honest customer profiles.
Today’s consumers expect brands to understand them. Salesforce’s “State of the Connected Customer” report shows that 66% of customers want companies to know their specific needs.
Without proper insights, marketing efforts risk feeling generic or intrusive. Brands like Netflix have set a new standard. Now, others are expected to match these tailored experiences.
Trust is the new currency. Customers stay loyal and engaged when brands ask for information politely and use it well.
Edelman’s Trust Barometer found that 81% of consumers want to trust a brand before buying.
Brands that use zero-party data well can offer highly relevant experiences. Competitors relying on old data cannot compete with that.
Gathering zero-party data isn’t about bombarding customers with endless forms. It’s about creating valuable, enjoyable exchanges.
1. Use Interactive Content
2. Offer Clear Value
3. Prioritise User Experience
4. Be Transparent
5. Reward Participation
When you know what your customers want, you can adjust your messaging, products, and services to suit their needs.
This leads to:
Customers feel valued when brands respect their preferences. This emotional connection leads to stronger loyalty and higher lifetime value.
An Accenture study found that 91% of consumers prefer brands that recognise and remember them.
Email campaigns, retargeting ads, and promotions work better with accurate data that people share willingly.
Expect to see:
Respecting customer consent is essential with GDPR, CCPA, and other global regulations. It’s not optional. Zero-party data helps ensure that marketing practices stay within legal bounds.
Brands can cut out old or unneeded third-party data buys. This saves money and helps avoid bad leads.
Netflix constantly improves its recommendation engine. It uses user preferences, like liked genres and watchlists.
They frequently ask, “Did you enjoy this film?”, giving customers easy ways to share their personal preferences.
Spotify Wrapped shows how to use customer data and behaviour to create a fun, personalized experience. This campaign creates buzz on social media and strengthens user loyalty every year.
Glossier creates a shopping experience that feels tailored to each person. They use product quizzes and emails based on preferences. Their quiz, “What’s your skin type?” gathers important data, which helps us suggest better products in the future.
Stitch Fix is an online personal styling service. It uses surveys to match clothes to each customer’s style, size, and likes. This is a great example of zero-party data done right.
While the benefits are impressive, collecting and using zero-party data has hurdles.
You must prove your brand’s trustworthiness. Mishandling data that is provided voluntarily can backfire massively.
Quick Tip: Always let customers easily update or delete their information.
Customers should never feel forced or overwhelmed when sharing information. Strike a balance between helpfulness and respect for their time.
Ensure your CRM and marketing tools can store, protect, and use zero-party data well.
Checklist for Effective Management:
Customers’ preferences can change over time. Brands must regularly encourage updates and adjust offerings accordingly.
The successful brands will focus on transparency, respect, and shared value.
Zero-party data will soon be non-negotiable for:
Focusing on ethical data collection and meeting customer needs will help your brand succeed in the privacy-first era.
Quick Wins for Brands:
Zero-party data isn’t just a trend. It’s the future of ethical, effective, and personalised marketing.
Asking customers what they like and respecting their choices builds deeper connections. This leads to better experiences and stronger brand loyalty. You’ll be ready for a world where privacy laws demand higher standards.
So, how can you start? Begin by evaluating your current data collection practices. Where can you invite customers to share? How can you offer genuine value in return?
Here are your next steps:
It’s time to build marketing strategies that your customers will love and trust.