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What is Zero-party data?

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Brands are at an all-out war for the attention of their target audience. They are striving to improve their customer experiences and to stay ahead game. Companies are constantly seeking ways to gather data that will help them better understand their audience. And recent regulations about the cookie policy and privacy is making it increasingly difficult for brands to have access to user data like before. “Zero-Party” data collection is something that is getting popular in this restricted environment.

The term implies collecting data directly from the source. By utilizing gamified surveys, quizzes, and introducing preference centers, companies actively collect data directly from their customers. Customers are asked about their demographics, behaviour, and preferences to ensure their needs are perfectly matched. This data is distinct from first-party data, which is collected passively. Zero-party data is entirely voluntary and given with the customer’s consent. Ethically sourced data is another term for this type of data.

Benefits of Zero-Party Data for Businesses

By collecting zero-party data, businesses can gain a deeper understanding of their customers without invading their privacy. This can help in tailoring their marketing strategies more preciously for each audience group.

Here are some of the key benefits of zero-party data:


One of the biggest benefits of zero-party data is enabling businesses to personalize customer experiences. By collecting data about customers’ preferences, interests, and behaviours, businesses can create personalized experiences. Each customer or to a segment can be given a tailored experience based on the data collected. A fashion retailer utilizes zero-party data on its customers’ preferences in design and can use this information to recommend products more likely to be of interest to that specific customer. This can lead to higher conversion rates, more repeat customers, and improved customer loyalty.

Targeted Marketing

Using zero-party data, companies can identify customer segments and create targeted marketing campaigns. Analyzing the gathered data, businesses can identify segments of customers with similar preferences. and by tailoring the message that matches a specific segment the advertisements can have higher ROI. Companies could use zero-party data to identify a segment of customers who are more interested in sustainable products. With that data at hand, they can market their sustainable product campaign tailored for that segment.

Product Development

Brands can harness the power of zero-party data to develop new products or update existing ones by understanding customer demand and expectations. And companies can create products that are better aligned with their customer’s needs and preferences through this. Staying with the example of sustainable products, if a clothing brand learns from its customers that they prefer organic fabrics and are willing to pay extra for that it can introduce an organic product line to satisfy the demand.


With new strict regulations around data collection using zero-party data can help companies ensure compliance with data privacy regulations. At the same time by asking for consent and data directly from the customers, businesses can demonstrate that they are taking data privacy seriously. And in turn that helps create a more transparent lasting relationship with the customers.

How Businesses Can Collect Zero-Party Data

Businesses can collect zero-party data, using various methods such as gamified surveys, quizzes, and preference centers. To ensure a seamless customer experience, companies must design methods that make it effortless for customers to provide information.

If you want to learn more about zero-party data or how Cleinsight can help you with it, get in touch with us here.