How Customer Data Platforms Can Leverage Zero-Party Data to Improve Customer Experience

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Marketers are approaching a crossroads with their most important digital asset: data. As the flow of data grows exponentially every year, one of the digital marketing industry's most widely used tools for analyzing campaigns and building lookalike audience profiles – cookies – is slowly dying. As the saying goes, "when one chapter ends, another begins".

To understand how customer data platforms can leverage data to improve customer experiences in a cookie-free future, it's important to understand the types of audience data marketers can work with. There are three types of audience data:

Part one Third party Gone Zero Data collected through direct consumer engagement with a brand.

For example, a consumer visits a retail site to look at shoes; the retailer collects the data.

Data collected by an entity that has no direct relationship with the consumer.

For example, a consumer visits a retail site to look at shoes; analytics company collects the data.

Data knowingly shared by a consumer with a brand as part of an exchange of value.

For example, a consumer visits a rewards program site and shares information to earn rewards.

Audience data definitions

Customer data platforms (CDPs) are designed to unify customer and potential customer data. With this in mind, CDPs handle a variety of consumer data. While the loss of third-party cookies will challenge marketers and agencies, first-party cookies are also at risk in an increasingly mobile, app-driven and privacy-driven digital world. As a result, "cookie-free" solutions will deliver the next generation of consumer experiences. The combination of CDPs and zero-party data packs a compelling 1-2 punch to improve customer experience (CX) and innovative brand engagement as the consumer-led Internet takes shape, aka Web3.

Partless data First party data E-mail, interests, profession and other registration information Behavior that enriches existing profiles and enables similar modeling; conquer CDP Data Unification Opportunities

Zero-party data: shared data is compliant data

Fortunately, the future is here, and it's called zero-party data. If you're confused or tired of data taxonomies, zero-party data is very simple: it's data that a consumer shares "directly and proactively with a brand," according to Forrester Research's taxonomy. The intentional sharing of information meets consumer data protection legislation (e.g. GDPR, CCPA, DCA) while building trust between a consumer and a brand.

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Why would a consumer decide to share information such as their name, email address, and behavioral data with a brand? E...