According to Forrester, zero-party data is the information that consumers intentionally and proactively share with brands.
Zero-party data can take many forms including purchase intention, personal information and communication preferences. Leveraging zero-party data can help brands build trust. However, brands should directly collect this form of data, with consent from each customer to establish transparency.
As almost 50% of US DTC revenues come from loyalty programs, brands should use zero-party data to personalise offerings and create enhanced loyalty programs. Companies should analyse this form of data to create unique and personalised ways, like exclusive sales and custom offers, to engage audiences.
With consumers willing to share personal information in exchange for a loyalty program's benefits, businesses should capitalise on zero-party data to create unique and relevant marketing campaigns. Applying machine learning and analytics can further help marketers drive “efficiency, effectiveness, automation, and optimisation.”
[4 minute read]