Consumers love it when brands cater to them on a personal level, yet they also have concerns about how their personal information is being used. In light of recent bad acts – Cambridge Analytica, Facebook selling private data to preferred brands, etc. – government restrictions have been put in place to limit how businesses can use consumer personal data (e.g., GDRP in the EU, California Consumer Privacy Act). So how do marketers provide a personalized experience without going too far?
If you’re still using third-party data sets, cookies and purchasing/browsing histories to obtain information about your customers, you need to re-think your strategy. Third-party data is often bad data because it comes from sources that are unrelated and often unreliable. This data then quickly becomes outdated with little to no relationship to the individual consumer. Using bad data leads to ineffective campaigns. Third-party data may also run afoul of government regulations.
Marketers can collect data that is intentionally shared with them by consumers. This is called zero-party data because the data comes directly from the consumer willingly sharing it with the brand. From this data, marketers can get insights on preferences and purchase intentions that are not inferred from another party’s data collection process – the information comes directly from the willing and proactive consumer. With this data, brands can deliver a much-improved experience that entertains, engages and rewards consumers. Additionally, this type of data remains fresh and accurate because it comes directly from your consumers.
What data does your organization rely on for marketing?