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What is Zero-Party Data? Why is it Important?

Learn why zero-party data is so important and how Digiphy can help you capture it.


Contextualization is the name of the game to stand out from the competition and provide your customers with the experience, content, and products they want. To do that, you need to understand your customers, and the best way is with data. That's why you need to focus on zero-party data.

Zero-party data is picking up steam and helping businesses, big and small, understand their customers and inform their marketing initiatives. The first step is to define and understand zero-party data and why it is essential to your business's success.

What is zero-party data?

Zero-party data is information customers both actively and voluntarily share with your business. In contrast, first-party data is collected via transactions or interactions with the consumer, and third-party data is collected from external sources and shared with companies. Learn customer preferences, demographics, and purchase history using zero-party data strategies such as quizzes, polls, offers, promos, surveys, and loyalty programs.

Why is zero-party data important?

The entire marketing ecosystem is shifting. Digital advertising is less effective and more expensive. Zero-party data is the future of digital marketing. It collects information directly from customers in a transparent, consensual, and legally compliant way. Before, retailers had to rely on marketing programs and third-party cookies. Zero-party data eliminates the middleman between you and your customers. Without it, your brand can't reach, engage, or build loyalty with customers. Zero-party data gives your brand helpful information to create contextual marketing strategies.

How can you benefit from utilizing zero-party data?

Foster trust and transparency with customers

Customers are increasingly concerned with their data privacy and how businesses use their information. Zero-party data is transparent and obtained directly from the customers. They know what data is collected, how, and for what purpose.

Additionally, zero-party data is consensual. Unlike third-party data, which can collect information without customers' knowledge, zero-party data requires customers voluntarily share their data with a business. Giving customers more control over their data increases transparency and builds trust between your brand and your customers, which often leads to higher customer loyalty.

Gather shrewd customer insights

Like all data, zero-party data helps brands understand their customers' needs and preferences. The difference is that brands now control the questions asked and how. It's a tailored experience. Most third-party data is generalized and not specific to a brand's individual needs.

Zero-party data lets brands get right to the issue or information they want to understand while owning customer interactions. For example, a small skincare brand hosts a giveaway at an event. To enter, attendees must answer a short survey and share their email. From the giveaway, the brand learns that potential customers prefer to purchase skincare products individually so they can customize their routines. Now the brand can use this learning to recommend related products and even drive reorders through timely promotions.

Convert customers through tailored, relevant experiences

Brands should use these customer insights to improve the accuracy of their marketing efforts. Campaigns based on customers' preferences lead to higher conversion rates and lower marketing costs. Zero-party insights help brands evaluate customers' lifetime value and even acquire more customers.

An engagement-based loyalty program is a way brands can collect zero-party data while building a deeper connection with customers. These loyalty programs go beyond the point of sale to connect with shoppers and return value for every interaction they have with the brand.

Maintain data-protection compliance

Businesses must comply with privacy regulations, which makes collecting customer data difficult. Zero-party data is GDPR and CCPA compliant because customers share their data voluntarily. 

How Digiphy can help you capture zero-party data

Zero-party data is an invaluable asset for any brand (i.e., all brands) that needs to understand its customers better, improve customer interactions, and increase the efficiency of its marketing efforts. That's easier said than done.

Digiphy is a no-code QR marketing platform helping brands capture zero-party data. QR codes activate physical products and marketing assets to strengthen your connection to customers. Our customizable and modular tools help companies create dynamic pages that rotate customer-loyalty programs, communicate a brand's unique story and values transparently, accelerate reorders, and boost post-purchase engagement.

Digphy tracks customer insights and analytics in one platform

Our self-serve platform combines QR and page building with third-party marketing integrations to deliver an always-on digital marketing channel. From a single marketing platform, capture zero-party customer data, real-time analytics, and insights to inform your marketing strategies and A/B test.

Digiphy fosters customer relationships built on trust and compliance

Digiphy's contextual-marketing approach builds trust between brands and customers. Digiphy QR connects shoppers to the right information at the right time, regardless of whether they're in the store, at an event, or out in the world, increasing conversions.

Digiphy easily captures customer-permission emails

Our platform's built-in email module lets customers share their email addresses with one click.

Digiphys helps you reach your customers where they are

Digiphy's easy no-code platform curates a powerful physical-to-digital experience using QR codes. Adding a QR to inserts, out-of-home advertising, shelf-talkers for events, digital signs in stores, and more connects your brand directly to your customers even when you sell through retail and e-tail.

Digiphy elevates context with every scan

Customers now expect relevant, tailored experiences. Digiphy QR codes allow you to build contextual experiences for each customer engagement. Now you can share with customers with highly relevant content specific to where your customers are, what they are doing, and what they need. Revise content easily and often without updating the QR code.

 

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