A new generation of zero-party data helps to build long lasting customer relationship and improve customer experience.
In 2020, Forrester coined the term zero-party data. Zero-party data is information that a client voluntarily provides with a brand.
With businesses leaning more towards technological dependency, the big data race is getting more contested. The tech world is agog with terms like data is the new oil, data is the new gold. We have also heard much about first-party data, second-party data, and third-party data. But in all the talk about data and its potential, one type of data that has been the buzzword is zero-party data.
At the center of all lies the fact that customers are willing to share data with brands but want customized experiences – one that suits their needs and wants – in exchange. As much customers desire personalized content, they are still apprehensive about sharing their data and fear the exploitation of their personal information or being flooded with adverts and emails. Brands are constantly faced with a privacy and personalization paradox. While third-party data has always played a key role in resolving the paradox between privacy and personalization, zero-party data has emerged as a key challenger in recent times. (Read More...)