Why So Many Agencies Ignore Zero Party Data (And How To Leverage It Effectively)
This is a partner guest article by Levitate Foundry. Learn more about Levitate here.
At Levitate Foundry, we know that in the world of marketing, data is king. It allows companies to create targeted campaigns that are more likely to succeed and make informed decisions. However, we've noticed that many agencies are overlooking the potential of zero-party data.
First, let’s clarify a few things.
What is Zero-party data (or ‘ZPD’)? Zero-party data is information that a customer intentionally and proactively shares with a company, such as their preferences, interests, and opinions. Despite its potential, many companies are still ignoring zero-party data because it requires them to actively engage with their customers and develop a relationship with them that goes beyond just selling products or services. This can be a daunting task for companies that are used to relying on third-party data or simply guessing what their customers want.
However, ignoring zero-party data is a missed opportunity. Despite the rise of zero-party data as a valuable resource, many agencies still ignore it. There are several reasons why agencies may overlook zero-party data. For one, it requires a more active engagement with customers, which can be time-consuming and resource-intensive. Additionally, many agencies may still be relying on third-party data or simply guessing what their customers want.
Here are a few ways to effectively leverage Zero Party Data and just why it’s so important:
- Employ Personalization As A Key Lifecycle Strategy: customers are more likely to do business with a company that offers personalized experiences. By leveraging zero-party data, you can gain insights into a customer's interests, preferences, and behaviors, allowing you to create more personalized marketing campaigns that resonate with them and increase their engagement. An effective strategy we employ includes sending hyper-personalized, targeted emails campaigns based on customer’s browsing and purchase history - timed strategically to be as impactful and time-relevant as possible.
- Leverage ZPD For Supercharged Customer Retention: Zero-party data is a powerful tool - if not one of the most powerful - for customer retention and repurchase. By collecting information about a customer's preferences and interests, you can increase the likelihood that they will remain a loyal customer over time. For example, you can offer personalized discounts or loyalty rewards to loyal customers.
- Incorporate ZPD In Your Product Development Strategy: Zero-party data can be used to gain insights into what customers want from your brand, allowing you to develop new products and services that meet their needs. This can be a valuable tool for businesses looking to expand their offerings and remain competitive in their market. This also positions you as a brand that listens and responds to its customers, fostering loyalty and trust.
- Increased Engagement with Targeted Offers: Zero-party data can be used to create targeted campaigns that encourage customers to engage with your brand, whether that means making a purchase, subscribing to a newsletter, or following your social media accounts. By leveraging zero-party data, you can create campaigns that resonate with your target audience and increase their engagement with your brand. This could mean offering personalized discounts or rewards, sending targeted emails based on their purchase history, or creating social media content that speaks directly to their interests.
Above all - there’s one MAJOR reason you should incorporate zero-party data in your marketing strategy.
Zero-party data is becoming increasingly important in light of recent privacy regulations, such as GDPR and CCPA, which limit the use of third-party data. By collecting zero-party data, companies can ensure that they are still able to collect valuable information while complying with these regulations.
By actively engaging with their customers and collecting zero-party data, companies can gain a deeper understanding of their customers' needs and preferences. This allows them to create more personalized and effective marketing campaigns that are more likely to resonate with their target audience.
At Levitate Foundry, we believe that zero-party data is essential for creating successful marketing campaigns. We understand that it can be a challenge for companies to engage with their customers in this way, but we're here to help. Our team of experts can assist you in developing a strategy to collect and utilize zero-party data to create personalized marketing campaigns that will help your business succeed.