Prepare for a Cookieless Future with Zero-Party Data

    Zero-Party-Data
    Prepare-for-a-Cookieless-Future-with-Zero-Party-Data

    As the use of cookies continues to decline while the demand for in-depth consumer insights persists, marketers must get creative as customers demand more transparency and control over their data.

    Third-party data have powered performance marketing almost from the beginning of the Web. As a marketer, it can be unsettling to see third-party data disappearing.

    However, data voluntarily shared by consumers is far more powerful. What other steps can marketers take to gain consumer insights? It is time to examine zero-party data. It is the path to a stronger connection between brands and their customers.

    Zero-party makes that agreement clear in a way that might benefit both consumers and marketers. Given that the concept is new, here are the factors that brands need to consider:

    Do They Put Privacy First?

    A tailored experience is necessary, but there is a fine line between that and an experience where the customer loses control and privacy.

    Major businesses are now required to be more transparent about their intentions with respect to users’ cookies and give them the option of allowing or forbidding that usage since the General Data Protection Rule of the European Union and a similar regulation in California were passed.

    Also Read: The Rise of Zero-Party Data and its importance for Marketers

    However, marketers must change their perspectives on data in addition to complying with the laws.

    It is antiquated for brands to believe that customers have consented to data sharing just by purchasing a product. Offering extra services and perks throughout the consumer lifecycle will be the key to a strong data relationship that is consensual. The best instances of this are reward and loyalty programs that keep consumers interested in the brand. Such initiatives have advantages that go beyond a single purchase. They request consent and may even be connected to exclusive benefits.

    Does the Value Exchange Make Sense?

    Zero-party data allows marketers to continue personalizing experiences without compromising privacy by obtaining explicit approval from consumers to use their data.

    In the long run, this will result in stronger relationships with customers. However, this can only happen if companies provide them with a good reason to consent.

    Consumers will regain trust and take back control of their experiences once marketers can offer a compelling incentive for them to voluntarily share their data. Customers are more likely to provide information to a brand if they are loyal and enjoy the brand’s offerings. Additionally, they are more likely to act as brand ambassadors.

    Do Companies Leverage Emerging Technology?

    Marketing professionals should consider other options besides loyalty programs. NFTs and Blockchain are examples of emerging technology that have transformed the game for businesses.

    Also Read: How Businesses Can Avoid Generational Stereotypes with Zero-Party Data

    It’s finally time for brands to develop genuine DTC partnerships. They must begin formulating a strategy and finding solutions to develop their data lake, track consumer lifetime cycles, and engage consumers after the initial transaction. This is nothing new. But the entry barriers have been significantly lowered by technologies like NFTs, Blockchain, and cryptography. It’s not new to consider loyalty and technology as a route to zero-party data, but brands can now finally access it thanks to technology and agency partners who can offer integrated solutions.

    Zero-Party Data Is the Way Forward

    If a brand is true to its customers and they have brand love, a virtual reward is an excellent approach to obtain consent to use that data. Importantly, brands can then continue to engage with consumers after that to produce value throughout a lifetime.

    A cookieless future is essentially inevitable with brands in this transition period. However, if marketers take the right actions, they can begin strategizing and devising new approaches to forge strong relationships with their most loyal consumers.

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