In my last post, we discussed how behavior design can be a foundational framework for digital personalization and optimization strategies. In order to implement that framework, brands do have to collect and leverage their user data, which they can acquire through first- and zero-party efforts. The difference between first-party data and zero-party data comes down to how users grant consent. While first-party data is gathered passively via customer interactions, users intentionally hand over zero-party data, such as survey responses.
According to a recent study from Forrester Consulting, most marketers (85%) see “zero party” data as critical for effective personalized experiences, but 36% worry that customer answers aren’t always accurate. Furthermore, 42% of marketers have access to zero-party data but don’t know how to use it effectively.
Putting Trust Over Transactions
Another consideration that marketers and brands need to keep in mind is what’s referred to as “trust over transaction”, as this Harvard Business Review article eloquently explains. Additionally, Action IQ surveyed consumers over different themes of importance pertaining to the use of first-party data for customer experience. The two characteristics most likely to be rated “very important” were “protects my data” (55%) and “respects my privacy” (48%)
When researchers surveyed consumers about the use of first-party data for customer experience, the two themes most likely to be rated “very important” were data protection (55%) and privacy (48%).
Interestingly, only 19% of participants deemed “personalization” as important in their interaction with brands. A key takeaway from this is that consumers aren’t anticipating personalization; they just more or less expect it from brands in today’s ecosystem. Clearly, what’s top of mind is user agency and an ongoing concern about marketing intrusiveness.
Why Your Brand Needs to Embody Trust
Actions speak louder than words. Consumers are very privy to how brands act on corporate responsibility. Ideally, organizations should have internal “checks and balances” that monitor the usage of personal data for marketing and product efforts. The goal is to make sure that these teams are abiding by codes of conduct in managing and handling user data for the good of the customer. Brands that proactively acknowledge and address consumers’ data rights will gain more buy-in in the long term, no matter how sophisticated their tech stacks are.
To make sure that your marketing and product teams are abiding by codes of conduct in managing and handling user data, we recommend a system of internal “checks and balances” that monitor the usage of personal data.
If your organization collects and uses first- and zero-party data, it’s never too early (or too late) to take a closer look at how that data is handled. When you’re ready, get in touch with us to learn more and get your organization on the right track.
