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.