Welcome to 2023, the start of the end of third-party data and the year we can expect to see somewhat of a revolution in online marketing circles.
For almost as long as the Internet has been around, brands and businesses have been using third- party data to track website visitors, improve user experiences, and collect data to help us target ads and experiences to the right audiences.
With the third-party cookie crumbling, zero-party data is the new marketing must-have, and those businesses with a loyalty programme will quickly find themselves with a distinct competitive advantage here.
These preference centres are often presented in the form of an online survey, or written questionnaire, and invite customers to share with a company how they prefer to communicate, what their interests are, what their personal goals are, what they want to learn more about, and what they’d like to see a particular brand or business deliver for them. Unlike first, second, or third-party data, zero-party information is offered to a business direct from the customer; it’s not inferred, deduced, or purchased. A study by US IT company, Forrester, shows that 85% of marketing firm respondents believe that zero-party data is critical to creating effective personalized experiences.
The beauty of zero-party data is it’s relatively fool-proof. You simply listen to what your customers tell you they want, and do your best to give it to them. Not only does this hand control back to the customer, but it takes the guesswork out of how to keep them happy. Consider how much more enticing it is for customers to do business with you when you’re recommending the exact products, services, or rewards they’re after.
Why loyalty programmes are a zero-party data goldmine
A YouGov study of customer’s data-sharing behaviours revealed 28% of people don’t like it when a company has their information without them explicitly providing it first, making zero-party data all the more powerful.
Another great thing about zero-party data is how creative you can be with your collection methods. Finding fun ways to incentivise data sharing will increase the likelihood of customers offering up information and can even strengthen your business relationship in the process. Consider which of the following approaches might be most appealing to your customer base.
- In-store experiences for loyalty programme members
- Surveys, polls, and quizzes
- Giveaways and competitions
- Branded digital games
- Face-to-face conversations
- Community forums
- Wish lists
- Preference centres during the onboarding process, or at annual check-ins
At Incentive Solutions, we are experts in strategic, data-led loyalty programmes and, collectively, have over 100 years’ experience in helping companies grow. Our data insights team can review your loyalty programme using our state-of-the-art technology systems and identify new opportunities for zero-data collection. We know no two businesses are exactly the same, so we’re committed to helping you craft a tailored programme that’s 100% bespoke to your strategy and brand.
If you have big growth plans for your business, consider a chat with us to discuss how we can help you deliver enough growth through your loyalty programme to make your investment cost-neutral!