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Organisations will invest more on technology to collect zero-party data. Digital advertising is on the brink of major, systematic changes. Values-based customers increasingly look to share their data with companies that embrace privacy as a value and treat data ethically. On top of it, the death of the third-party cookie forces companies to focus more on collecting data directly from customers and rely less on more risky third party data. In 2021, CMOs will start to make strategic revisions to their ecosystem and will increase their capabilities to collect zero-party data. CMOs must partner with their security, risk, and privacy peers to select the right technology and craft processes that adequately support their objectives.
Amazon.com wants greater insights into what its customers are purchasing and it is willing to pay for the information.
The e-tailing and technology giant has launched Amazon Shopper Panel, an invitation-only program that allows participants to earn monthly rewards by sharing receipts of purchases made outside of its website and retail stores.
Participants in the program are asked to upload photos of 10 eligible receipts per month taken with the Shopper Panel app. Alternatively, they can forward email receipts to Amazon. Additional rewards are available when participants fill out short surveys. Amazon customers can earn up to $10 a month that can be applied to their balance on the site or donated to charity.
"The survey found that while some marketers are proactively making the switch to post-cookie data strategies, the majority are still relying on third-party data, and many need new resources and content to help them create the authentic relationships that produce first-party data.
- 50 percent expect to be more reliant on first-party data in the coming year, and 49 percent will use more zero-party data
- While 50 percent are using newsletter sign-ups to boost engagement, 29 percent are exploring a subscription offering
- 52 percent saw difficulty in creating content that appeals to their audience as a roadblock to improving direct engagement.
- 78 percent said they will adapt to using other types of data, but don’t need to make any changes yet, putting them at risk of missing Google’s 2022 deadline for cookie deprecation.
You can find the study here: https://info.piano.io/state-of-direct-brand-engagement"
1. COLLECTION: Be honest
Just because the user has given you that data, it is important you are honest how the data will be used. This does not mean you need to provide lengthy policies, but you should indicate what data you will be storing, where it will be processed, and the reason for the processing. As more consumers become increasingly intentional about the data they share, zero party data provides a great opportunity to also attract more data-conscious customers, by providing more control to them.
2. HANDLING: Rights under Data Protection Law may still apply
Remember that whatever data you may collect, your users may request for its deletion or access to it under GDPR, CCPA or a Data Protection Law. If you are processing data, you also need a legal base to do this. True zero party data collection will fall under legitimate interest as it is wholly expected by users that this data will be used to personalize their experience in this way.
3. IMPLEMENTATION: Be flexible
People change. Even the greatest brands do not fit everyone, so it is important you always give an option to opt out, or for users to have their data be deleted. Without doing this, even zero party data could put you at risk of frustrated customers alerting data protection authorities.
4. ANALYZE: Be fair
Whenever you collect data, remember to consider the context you are operating with. While collecting data as zero party will be mostly fair, other circumstances can present situations of imbalance of power.
5. RENEW: Be creative
Data Protection Law is supposed to protect the free flow of data, not restrict it. The best way to collect data is by providing a relevant and engaging experience, which allows the user to fully engage with and feel connected to your brand.
6. VIGILANT: Keep it secure
Finally, any personal data collected must also be stored securely and be guarded from data breaches and attacks.
Zero party data is information that a customer freely provides to a company. It’s not inferred from how a customer behaves on your site. It’s explicitly given by a customer, typically with the expectation that giving their data will reward them with a better shopping experience.
Zero party data differs from the other three data types because it is provided by the customer, not inferred from their behavior. It’s information a customer wants a company to know. It doesn’t have the creepy, invasive nature that some other forms of data collection can have. And it’s always given with full consent.
Zero party data presents marketers with an opportunity to collect valuable, actionable, and ethically-gathered information about customers in a time where data collection and usage is fraught with challenges.
To gain a deeper understanding of each customer, high-quality data is vital. Nash said that “It’s important to lay the foundation and follow the proper steps. First, gather all data sources, including first-, second- and third-party, unstructured, semi-structured and structured, batch and streaming, as well as anonymous and known data. Detailed transactional and behavioral data is also key. Ultimately, you’ll want to know all that is knowable about each customer, while collecting that data in a respectful and ethical way.”
Given the wide disparity of data that Nash spoke of, being able to effectively use that data with relevancy involves a single customer view that entails all of the data that has been gathered. Nash explained that “Once that data has been properly collected, it needs to be accessed and easily understood. A superior, personalized and highly relevant customer experience is only made possible with data that provides the right setting — specifically, a cleansed, up-to-date single customer view that tells you everything you need to know about a customer, or a ‘Golden Record.’”
1) The convergence of MarTech and ad tech
According to a study by Sizmek, 28% of marketers think that it's critical to reduce the number of vendors they use. Another 36% find it urgent to use fewer tools for their marketing activities.
2) Contextual intelligence in marketing
Contextual intelligence is poised to replace advertising based on user data. Instead of tracking users, a business can display ads based on the content of a page. This can kind of sophisticated technology is based on artificial intelligence and natural language processing, which can scan and understand the context of a webpage.
3) Zero-party data
Today, we're looking at zero-party data collection. This is a lot like first-party data except the user is more involved. They clearly, explicitly and deliberately give you information about themselves with the expectation that they will get a benefit in return.
These benefits come in the form of personalized content and a better user experience. Zero-party data is different because it's self-reported (by users), fluid (it can change over time), and there's a conscious intent to get a benefit out of the information shared.
Assessing the efficiency and value of marketing technology means understanding how it will fundamentally change the nature of a marketer’s job, and in turn, help them transform customer relationships. Here are four critical, yet often overlooked areas to consider:
1. The Proximity of Data to Customer-Facing Engagement: As the business group closest to customers as they engage with the brand, marketers need tools that provide them with direct and immediate access to unified and actionable first-party data. In other words, they need their own 'single customer view' deliberately designed for marketing purposes.
2. Ability to Eliminate Inefficiencies and Dependencies to Increase Time-to-Market: Access to real-time, comprehensive and always-accurate customer data, when granted, unquestionably improves marketing performance.
3. The Time and Effort to Get From Insight to Action: Give marketers the data they need in the form and time in which they need it, so they can spend more time on the art and marrying the two together.
4. Increased Business Agility and Resilience: The year 2020 emphatically reminded company leaders everywhere of the unpredictability of the world and the difference it makes to have teams and tools that allow for flexibility and speed in response to market changes.
So how should brands go about collecting ‘zero-party’ data? It starts with establishing what type of information you need from the consumer and why.
“Consumers want to know why you’re engaging with them; consent is really important. Secondly, they want to know what data you want. If you don’t explain why, there’s no reason why the consumer will give you their data,” Loizou explains.
Critically, consumers need to understand what’s in it for them.
“We call it the ‘value exchange’. The first thing a customer is asking themselves is ‘’what’s in it for me? There has to be some form of exclusivity, some form of gamification or interactivity. Consumers are receiving something — a discount, an experience, exclusive access, a giveaway, etc. — in exchange for their data.”
• Apple Safari just announced it has blocked all third-party cookies as of March 2020, beating Google Chrome’s announcement that it will phase out third-party cookies by 2022.
• Data collection and use as we know it is changing rapidly, and it behooves savvy marketers to get ahead of the inevitable restricted access to third-party data and find other ways to get the data they need.
• Companies still have access to first-party data, which is data collected by a company on its website for its own use. The only restriction here is that the company must follow privacy regulations for ensuring transparency, right to correct, delete, etc.
• Zero-party data is data that a customer voluntarily and knowingly shares with a company. It might include preferences, intent or interest, or self-classification/identification within a particular group.
• The key to zero-party data is that the consumer has total control over what information he/she/they gives a brand. It is completely transparent and therefore there is no confusion over permission.
• A more transparent, helpful approach of asking for information to tailor customer experiences (in a user-friendly, conversational manner) will not only result in more accurate data, but potentially in stronger, more trusting and mutually beneficial relationships with customers.
How much of your job can you do without having access to unencrypted data? For example, in the marketing research space, there are vendors for survey respondents, reporting tools and survey platforms that operate as intermediaries between the consumer/research participant and the research organization (a brand or agency). This service can actually be provided without having direct access to any unencrypted data, and without drawing from a centralized database. This is analogous to apps like WhatsApp where end-to-end encryption is utilized to ensure secure communication. Any entity that potentially handles any sensitive data, including user and health data, can benefit from employing these techniques to ensure data is protected and unnecessary liability is avoided. Fortunately, along with the interest in blockchain and bitcoin technologies, we’ve seen considerable advancement in cryptographic techniques which enable new opportunities for secure communication.
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I pulled the portion related to zero party data. This is on the EU side, but know that this is coming to the US.
With the death of 3rd party cookies, we have the answer.
See how extended zero-party data is your greatest marketing resource...and you can tap into it right now!: http://un.marteq.io/WP1/ #martech #marketing