Using data effectively for growth is crucial, but not all data is the same. Zero party data is especially valuable because customers willingly share it. It is the most reliable and trustworthy form of data possible. So, what should you collect as zero party data? It all depends on your goals. Your goals should guide what kind of zero party data marketing you do, making sure it helps your organization and provides benefits to your customers.
Audience Growth vs Understanding Your Customer
When the goal is to expand your audience and drive acquisition, focusing on basic profile identifiers is step number one. Collecting email addresses, names, and phone numbers forms the bedrock of growing your customer base, but that doesn't necessarily mean you understand your customer.
Data Past Profile Identifiers
Past basic profile identifiers, it's important to dig deeper into comprehending your customers. Let’s take a look at the 5 key indicators on understanding your customer.
Preferences refer to the things individuals like or favor. This can be a wide range of choices such as favorite colors, preferred styles, or favored flavors.
Interests are the activities or topics that captivate and engage individuals. This could include hobbies like gardening, cooking, or reading, as well as interests in technology, sports, arts, and more.
3. Buying behavior:
Buying behavior refers to the actions customers take in their purchasing journey. It includes their interactions with your brand, what products or services they purchase, how often they buy, and what triggers their decision to make a purchase.
Demographics refers to statistical data relating to the population and particular groups within it. It includes categories such as age, gender, race or ethnicity, marital status, family composition, and living arrangements.
5. Intent/Life event:
Intent or life events refer to significant occasions or intentions in a person's life. It could be intentions to buy a house, have a baby, get married, or events like birthdays, anniversaries, or home renovations.
Engaging your audience is a core objective for many businesses. Sometimes, all you need is for customers to show interest, indicating their ongoing engagement. Campaigns designed to capture this engagement typically revolve around KPIs like impressions, entries and clicks. But there is also plenty of opportunity to collect zero-party data with engagement campaigns as well. Collecting this data allows you to gauge the effectiveness of your campaigns and adjust your strategies accordingly.
Product Improvement and Research
Feedback is the lifeblood of product improvement and research. Gathering ratings, reviews, and feedback directly from your customers provides invaluable insights into the quality of your products or services. This data allows you to identify areas for improvement, address customer concerns, and ultimately enhance customer satisfaction.
Making sense of Zero-Party Data
In collecting data, start with the end in mind. Don’t just collect data to collect data, but do it with the purpose of gaining insights and understanding what motivates your customer to act. Zero party data, which customers willingly share, is like a goldmine of useful information. The data you collect should match what your organization wants to achieve. Whether it's getting more customers, knowing your audience better, keeping them engaged, or improving what you offer, collect data with a clear reason. Let what you want to achieve guide how you gather data, so it's not just a lot of data but useful and practical.