A new SheerID report produced by Forrester Research* has identified that 99% of marketers are impacted by data deprecation as a result of the cookies and browser tracking restrictions and are looking to better harness zero-party data sets.  The report found that nearly 50% of marketers still don’t know how to use such data effectively.

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The report also highlighted that 99% of the 200+ digital marketing decision makers surveyed are impacted by the data deprecation demise resulting from Safari, Mozilla and Apple iOS restrictions.  This includes the tightening of the privacy laws with challenges from acquiring customer data, x-sell/upselling, tracking every customer touchpoints across customer journeys to enable creation of personalisation messaging and experiences on digital platforms.

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What is Zero-Party Data?

This has resulted in nearly 90% of survey respondents confirming that their companies are planning to capture more zero-party data within a 12 month horizon.  Zero-party data is where a customer intentionally and proactively shares with a brand their channel preferences, purchase intentions, personal context (such as sex, age, mood and cultural identity) and how a brand should recognise them (such as demographic profile data).

What is surprising is that the study identified that 42% of the respondents don’t know how to use the zero-party data that they have and DataClique Marketing can assist with this.  And 40% claimed to both have the data and are using it effectively, while 15% advised the zero-party data access is quite limited. 

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What are Top Respondents Doing?

The top users cited for zero-party data utilisation are derived from customer insights and customer intelligence (45%), tracking customer journeys across channels and touchpoints (45%), knowing who our customers are (43%) and creating personalised messages or experiences (43%).

 

The major roadblock for respondents from utilising the zero-party data more effectively, comes down to data accuracy (36%), potential liability impacts due to new privacy regulations (36%), uncertainty about how zero-party data fits into the organisation’s broader data strategy (34%), not sure about how to seek permission from consumers for this data (33%) and uncertainty around third-party technologies that can assist with implementation of this powerful data (33%).

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Why Capture Zero-Party Data?

The top priority investment to drive zero-party data use are for the development of new or enhancing of existing loyalty programs to capture more of this data, representing 66% of respondents to the survey, third-party technologies to deliver personalised experiences using zero-party data (63%), financial rewards for data provided such as surprise & delights (59%), third-party technologies to capture zero-party data (53%) and hiring an agency to assist with building a campaign (52%).

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The question asked, why is zero-party data so important? For most respondents, the significant or transformational benefit is to increase customer lifetime value (76%), and ability to profile and segment their customers (75%) and improve the ability to target their customers from an acquisition and retention perspective (75%).  To seek further help on your data driven strategy, get in touch with DataClique Marketing today.

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Author: Leeann Ellison

*Data Deprecation Challenge and Promise of Zero-Party Data report produced by Forrester resource on behalf of martech company, SheerID. The Forrester derived survey was conducted across 200 digital marketers of management-level or above in the UK, US, France and Germany in April 2022.