Zero-Party Data: How to Make it Work for You

With the cookiepocolypse upon us and privacy violations making brands vulnerable, zero-party data adoption could be the silver lining to help marketers thrive. Can your brand tap into ZPD to thrive in a post-cookie, hyper-personalised world? In her latest feature, Avya Chaudhary talks us through...


For years, marketing strategies were built around tracking cookie sessions, piecing together disparate data, and hoping for the best. Even now, 64% of B2C marketers lean on website data to boost brand awareness and cut churn. But that stronghold has been slipping away, as per the latest report by Porsch Group Media. Around 57% of marketers are now putting their bets on zero-party data (ZPD) sources like surveys and social media polls, where customers willingly share their preferences instead of intrusive data collection. 


“Unlike first-party data, which observes behaviors, zero-party data is voluntarily shared by the target audience, like style preferences or event plans,” says Brian Lim, CEO and co-founder of iHeartRaves. With self-declared preferences in hand, the label can take control of their own data narratives and build stronger, more lasting relationships. Say a customer selects "fitness enthusiast" in a survey, you can use this insight to offer tailored rewards - discounts on smartwatches, rowing machines, or treadmills - instead of blanket offers

around electronics. 


The rise and rise of zero-party data 

As of now, third-party data sources are crumbling, digital advertising is in turmoil, and 54% of marketers are under pressure to rethink how they engage with audiences post cookies. “Brands need to shift from passively collecting data to actively engaging customers for insights,” warns Brett Cella, VP of Martech Americas at Jellyfish. With cross-site tracking fading away, companies are turning to zero-party data to fill the gap. 


For marketers, though, the real advantage of ZPD lies in understanding intent. Traditional first-party tracking sees a shopper returning to a luxury handbag page but doesn’t explain why they’re not purchasing: are they hesitant about the price, waiting for a sale, or just exploring? The focus will be on customer action over intent and the reasoning behind it. 


ZPD, collected through surveys, preference centers, and social listening, helps answer these questions. If a shopper indicates in a quiz that “interest-free installments” are a deciding factor, marketers can use that insight in CRM segmentation and offer exclusive no-cost EMI offers or credit card discounts. 


Many brands are also eyeing ZPD as their golden ticket to rebuild their relationships when trust in brands is at an all-time low and privacy rules are tightening up fast. After all, 75% of consumers won’t buy from brands that violate their privacy. ZPD takes care of the problem by putting “consent” front and center without scaling down experiences that customers actually feel good about. 


Tim Ringel, founder and CEO of Meet The People, explains that while first-party data might seem like a safer choice in this aspect, it’s not always as reliable as it looks. “When you buy third-party data and polish it through engagement, it technically turns into first-party data, but it’s still missing real consent,” Ringel says. Zero-party data, on the other hand, is fully consented to and comes with a bonus: it sparks genuine, positive sentiment from customers who know their preferences are truly respected.


Marketers are betting big on zero-party data– and it’s paying off

Epsilon’s Esme Robinson details how her team designs interactive experiences that help marketers collect insights, engage customers, and deliver actionable results, “These quizzes and surveys appear as website overlays,” Esme explains. “A travel brand might ask users about their dream vacation, while an apparel company could collect size preferences.” 


What makes this type of approach so effective is that the data collection feels intuitive rather than intrusive and can be leveraged to "send out a welcome email journey that's tailored to each individual." That’s exactly why major retailers like iHeartRaves have doubled down on it. “Not only do these strategies help with lead generation, but they also make our product recommendations more relevant among first-time buyers.” 


Brian shares that the team currently uses email sign-up discounts, post-purchase surveys and style quizzes to collect zero-party data. And it’s working. iHeartRaves’ retention rates are soaring, and email campaigns now account for a solid 25% of total sales. More importantly, customers keep coming back because they get style and event suggestions that actually match their vibe.


Over at UpPromote, Michelle Nguyen sees ZPD as a way to remove the disconnect in affiliate incentives. Instead of applying one-size-fits-all incentives, her team goes straight to the source and asks affiliates what they value most: competitive commission tiers, special product access or long-term, sustainable collaboration. Her team then uses this intelligence to build a program where rewards match real motivations and find affiliates who actively push the brand.


Challenges and risks 

Brett’s seen it happen time and again: brands collect zero-party data but have no idea how to use it. They gather this valuable info but don’t know how to fit it into their ad strategy, and that’s where things go wrong. Right now, activating ZPD at scale requires connecting it to cookieless identity solutions: Google Ads and Privacy Sandbox, Meta, The Trade Desk and UID2, and CTV/streaming platforms. But if your marketing budget is already under pressure, this is just more money spent with no immediate return.


The risk gets even more complicated when the data is trapped in silos. Marketing may gather rich ZPD, but if sales or customer service teams can’t access or act on it, the whole effort falls apart. Instead of creating personalised experiences, you end up with fragmented data that leads to disconnected buyer journeys. Customers might update their preferences online, only to have to repeat them in-store or during a call. For Brett, this is where ZPD stops being a targeting solution and turns into just another survey. 


Add data decay to the mix, and marketers risk turning ZPD from a valuable tool into a disaster. Michelle at UpPromote knows this challenge all too well. Without regular updates, you end up relying on outdated information that doesn’t reflect what consumers really want right now. Consumer preferences are constantly shifting, and if ZPD isn’t kept up-to-date, it quickly loses its effectiveness. 


Add data decay to the mix, and marketers will get the perfect disaster of ZPD working against them rather than in their favour. Consumer preferences are always changing, and ZPD can lose its value if not kept current. Michelle at UpPromote has had her share of challenges keeping data fresh. Without constant updates, you end up using outdated information that doesn’t speak to what consumers actually want right now. 


But the lines around zero-party data are starting to clear up. Esme puts it perfectly: “The real shift is about complementing different data sources with ZPD, not replacing one with the other.” As brands build their customer databases, understanding identity signals and how to engage across different touchpoints will be crucial. To form genuine connections, the best approach is to use the data that users willingly share. “This creates a clear, mutually beneficial relationship where the user actively decides to provide their info.”


Also pubished in: ExchangeWire

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