We know that personalization engages prospects, increases sales, and builds loyalty. According to McKinsey, personalized tactics drive 40% more revenue and 76% of customers get frustrated when interactions are not personalized.
In order to personalize, you need to know what a customer wants.
Today, most companies assume what a customer wants based on first-party behavioral signals during a browsing session
This data transformed through analysis and is often augmented by third-party data from data brokers and other sites.
The demand for privacy is changing the way we collect, analyze, use, and share data at a fundamental level. And rightfully so.
First- and third-party data are not only going away due to privacy, they are also risky to use as basis for assumptions about what customers want.
The privacy-personalization paradox is a new problem that requires a new type of data.
Zero-party data (ZPD) is data that is intentionally and proactively shared by customers directly with a brand. Examples include preferences, needs, budgets, physical conditions, values, and more.
It solves all the problems of privacy-last data, and creates better customer experiences with less effort needed.
ZPD is like trust – it must be earned over time. Earning zero-party data means offering the right value in exchange for data at the right moment in your customer journey. You shouldn’t ask for email the moment they land on your site, and you shouldn’t expect customers to infer the value they are getting. It should be obvious and delivered as quickly as possible.