What Exactly is Zero-Party Data?

Zero party data describes any personal preferences, insights, profile data or consents voluntarily shared by customers with a brand. Compare to first-party data, zero-party data is clearly a new milestone. When customers share zero-party data, it gives companies clear insight into their needs, interests, behaviors, and more. At the opposite first-party data can only offer inferred insights generated from purchase history or basic demographic data like date of birth. With zero-party data, customers expect companies to provide them value in exchange for their willingness to share their personal information.

Zero-party data is highly valuable because:

> It is unique to your brand

> It is the ultimate source of truth because it comes directly from your consumer

> It is based on the level of trust between brand and consumer

> It enables brands to provide value to the customer in return

With zero-party data available, organizations can respond by providing personalized and relevant customer experiences. This perceived mutual value to the consumer motivates them to continue sharing data in the future. It is important to expand zero-party data collection efforts and incorporate this data into a centralized platform that provides both transparency and control to the consumer.

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What is the difference ?

Zero-party data

Zero-party data is data or personal information that your customers or users actively and freely choose to share with you.

This data is directly collected from your customers and not by using tracking pixels, cookies or cross-device identification.

It is more valuable than traditional first-party data since customers proactively share it, making it more trustworthy and more complete.

1st-party data

First-party data is defined as data that your company has collected from your customers as the customer interacts with the brand.

First-party data includes profile data such as demographic information, purchase history, subscription data and tracking user behavior on your website.

2nd-party data

Second-party data is data that an organization collects straight from its audience and then sells directly to another company.

Essentially, it is another company’s first-party data that your company has permission to use.

For example, a large advertiser might partner with a large publisher to gain access to its audience information.

3rd-party data

Third-party data is any data collected by a company with no direct connection to the consumer whose data is collected. Third-party data sources may include websites, social media networks, surveys, and subscriptions.

For example, a third-party data provider might pay publishers to let it collect information about their visitors and use it to piece together detailed profiles about users’ tastes and behaviors.