In today’s ever-developing and increasingly digitized society, data is still king.
Because here’s the thing:
You’ll have an advantage running a business if you know your customers well enough, allowing you to address their needs and expectations better. For many companies, this means collecting zero-party data.
But what exactly is zero-party data? And can it really help you boost your marketing efforts?
Read on to find out!
What is zero-party data?
Zero-party data is information that a customer shares voluntarily with a business or a brand. Examples of zero-party data include style and product preferences, hobbies, interests, purchase intent, or any other information that can help improve a brand’s Customer Experience, also known as CX.
Zero-party data can be collected through surveys, questionnaires, client onboarding, and other ways. It’s important to note that zero-party data is different from first-party data, wherein the latter is collected through the business’s website and apps. Another major difference between first-party and zero-party data is that the former is concerned with customer behavior, while the latter focuses more on customer preferences.
The Benefits of Using Zero-Party Data
Zero-party data has many benefits, including:
- Improving customer experience;
- Gaining a better understanding of customers’ needs and preferences; and
- Developing a more personalized marketing strategy.
Now, let’s take a look at each one.
Improving customer experience with zero-party data
As a business, you want to give your customers the best possible experience with your brand, but how do you know exactly what they want?
There are several ways you could extract data, but more often than not, they are not as accurate or as you would like them to be. Besides, data from other sources can be time-consuming, not to mention expensive.
So, how do you get the best data? By collecting it from your customers themselves. Once you have the information you need, you can use it to make better decisions about your business and provide a better experience for your customers.
Gaining a better understanding of customers’ needs and preferences
Finding the right product and services can be a time-consuming and exhausting task, especially if you’re dealing with tons of products and services.
If you want to make it easier for customers to find what they’re looking for, try incorporating personalized recommendations based on their past purchases and interactions. This way, you’ll be able to offer them something they want instead of wasting time trying to sell them something they don’t care about.
But how do you get started with that? With zero-party data, of course!
For example, you can feed zero-party data into machine learning models to predict future behaviors and preferences. These models will then recommend products and services that your customers might like.
Developing a more personalized marketing strategy
Marketing is a lot of work, but it can bring in lots of revenue when done well. Unfortunately, most businesses tend to focus on the wrong metrics and end up spending money on ineffective advertising strategies.
By using zero-party data, you can create a more personalized (and effective!) marketing strategy that will lead to higher conversion rates and increased sales.
As you can see, zero-party data is a powerful tool that can help you better understand your audience and improve your marketing strategies. In the long run, this leads to more sales and higher conversion rates.
So what are you waiting for?
Start collecting this data today and watch your sales climb higher than ever before!