As consumers look to stuff their stockings, marketers are ignoring an obvious gift waiting under their tree: zero-party data. This is data that customers volunteer about themselves, like their preferences, personal context, and purchase intentions. At a time when data deprecation makes customer data harder to acquire, zero-party data provides a valuable means for brands to learn more about shoppers, deliver relevant experiences, and convert them from first-time customers purchasing from a wish list to regular shoppers. With predicted holiday retail spend topping $1 trillion this year, brands have a plethora of opportunities to learn more about shoppers and deliver value.

(Source: Tenor)

Use Zero-Party Data To Improve Shoppers’ Experiences

Holiday shoppers are trying to balance splurging on loved ones with economic worries and uncovering thoughtful gifts within a sea of choices. Many consumers are willing to volunteer zero-party data in exchange for something valuable such as loyalty points or exclusive offers. By collecting and using zero-party data, brands can help deliver value, provide cost savings, and combat that overwhelmed feeling for consumers. Brands can:

  • Ask for zero-party data in exchange for cost savings. More retailers are offering free shipping or free returns as a perk for creating an account — a clear value exchange for consumers. But don’t miss the opportunity to also ask for one or two data points about someone’s product preferences in the account creation process. Doing so gives the brand data to immediately personalize post-purchase communications and keep customers engaged.
  • Streamline product searches with product recommendations. Product recommendation quizzes improve the experience for consumers who don’t want to scour a company’s website for the perfect gift. In turn, brands get clarity on consumers’ shopping preferences and can add more consumer data to their arsenal. The best product quizzes gather enough data to make a targeted product recommendation and give the retailer some context on who a shopper is and how to best engage with them.

Personalize Without Being Creepy With Zero-Party Data

Personalization is a delicate balance. If it’s too precise, consumers may wonder, “Why does [brand] know that about me?” If it’s off the mark, it can frustrate or annoy customers. Zero-party data lets brands personalize experiences in a much more transparent way. By allowing consumers to weigh in about their needs and context, brands can personalize content and recommendations accurately without being creepy. For example, brands can:

  • Get better-quality data than from inferences alone. Brands should confirm assumptions with consumers while explaining where the assumption came from. It’s as simple as OpenTable asking you to confirm “Do you want to set Boston as your home city?” when you make a reservation in Boston. If you hit “yes,” your next restaurant search will default to Boston.
  • Ask who they are shopping for. With zero-party data and gift-giving signals — like when someone requests a gift receipt — brands can ensure that they’re personalizing off the right data. When MECCA Australia built a product quiz centered on Mother’s Day, it asked shoppers who they’re shopping for and what their typical buying behaviors are (ranging from “I know next to nothing about beauty” to “I love beauty, but I’m usually shopping for myself”). No one needs a million “personalized” emails about makeup that they bought as a gift when they have completely different makeup needs; with this one data point, MECCA ensured that it was communicating effectively with gift givers.

To learn more about how to maximize your zero-party data efforts during holiday shopping and beyond, set up a guidance session.

Thanks to Anna Hoskins for contributing to this blog post.