Leading US business magazine Forbes' number one prediction for 2019 is that retailers will move away from unreliable third-party data sets and build more meaningful relationships with shoppers through zero-party data. And as the retail landscape continues to shift from bricks to clicks, it’s about time.
For generations, shoppers visited retail stores, chatted with expert sales teams, and made considered decisions based on the trusted advice they were given. This has all changed.
Today's shoppers browse in-store, only to purchase cheaper online. They expect a one-click checkout, next day delivery, free returns, and take advice from peers on social media ahead of any staff or celebrity endorsements.
Couple that with the changing data landscape — epitomized by the negative headlines following the Cambridge Analytica scandal and data protection legislation sweeping the globe — a new age of privacy has been ushered in. For retail marketers, this has meant weaning themselves off their third-party data quick fix and shifting to a zero-party data strategy.
That’s why Forbes follows the Cheetah Digital vision and foresees retailers turning to zero-party data in 2019.
“Say goodbye to third-party data and hello to zero-party data. Data that customers own and willingly provide to brands.” – Forrester
First-Party Data Is Not Zero-Party Data
For the uninitiated, zero-party data is not first-party data rebranded. First-party data is collected during sales and includes things like purchases, mailing address, date of birth, and the like. All valuable information, but it’s purchase history rather than purchase intentions.
Zero-party data is information intentionally shared by the consumer, which is empowering retail marketers to build direct relationships with shoppers, and, in turn, better personalize their marketing efforts and product recommendations without the guesswork.
Retailers can collect this data that is intentionally and proactively shared directly with them by the consumer by asking the right questions and offering a tangible value exchange in return for their preference insights, purchase motivations, and desires.
52% of consumers would share personal data in exchange for product recommendations
How Retailers Can Activate Zero-Party Data At Scale
Modern shoppers need to be entertained, engaged, and receive something in return for their attention and preference data. Retailers can deliver this through interactive experiences that conduct research, accrue opt-ins, and deliver an altogether better experience for the consumer.
Whether a questionnaire on a favorite fashion accessory, a "who wore it best" poll, quiz, or social story, by leveraging these interactive experiences that incorporate incentive mechanics retailers can quickly and easily collect zero-party data at speed and scale to personalize every shopper's journey.
Cheetah Experiences empowers brands to stop using guesswork by arming you with the data you need to make the right connections with your customers. And by leveraging the right mechanics and offering a value exchange, your customers will tell you what products they desire, what they look for in a product, and what motivates them to purchase.
Cheetah Digital is a cross-channel customer engagement solution provider for the modern marketer. The Cheetah Digital Customer Engagement Suite enables marketers to drive revenue, build lasting customer relationships, and deliver a unique value exchange throughout the entire customer lifecycle. We are a business partner to the world’s best brands and have employees across 13 countries.