In 2021, consumers expect ads and marketing initiatives to be tailored to their individual needs. According to Accenture, 91% of customers are more likely to shop with a brand that provides personalized recommendations and offers.
What is the best way to get to know your customer? You have to get personal.
If companies want to stay ahead of the game, they have to recognize that data from cookies is no longer sufficient. It’s different from cookie collection because data is given voluntarily, and it comes directly from the consumer.
Here’s how companies can meet customers’ needs and establish trust through zero-party data collection.
Show customers you’re listening
One of the most pivotal ways to establish a relationship with your consumers is to offer them a value exchange. Your customer offers you valuable information (theirs), and you offer them personalization in return.
Different from cookies, zero-party data collection engages directly with the consumer, reveals psychographic data that cannot be inferred or deduced from behavior tracking, and builds brand trust.
Be receptive to individual interests
A 2019 study by Statista found that in the U.S., most consumers claimed they were receiving irrelevant marketing messages. Of those consumers, 40% said they would willingly switch to brands who could more effectively personalize the offers that were made to them.
Zero-party data goes a step further in that you can collect psychographic data information about the customer while gaining the ability to reward them with something aligned directly to their needs or desires.
Be clear with customers
Make sure your customer knows what their data will be used for. This increases brand transparency, which, in turn, increases brand trust.
Statista also found that 40% of consumers only consent to cookie usage when mandatory. On top of that, 10% of consumers said they never consent to cookie usage.
Consumers are rightfully distrustful of cookies because they do not have control or general awareness of the data that was collected, who it was collected by, when it was collected and what it will be used for. Conversely, when they willingly share personal preferences with a specific brand that they know and trust, the data conversation changes completely. They answered honest questions from a brand they are interested in and know what to expect as a result.
Make it easy to participate
Simplify the process and make it straightforward for your customers to share their information with you. Keep data collection accessible, easy to read and easy to understand.
Figure out a format for data acquisition that is familiar to customers, whether that’s a ranking system or a sliding scale that allows customers to choose from a few options. Make it interactive enough to keep them interested, but simple enough to get follow-through on the prompts.
Campaigns should entertain and educate consumers while gathering the information you need to personalize their journey.
Leave space for value changes
Consumer habits and spending purchases change over time. Be ready to adapt and gather new explicitly declared information at regular intervals. If your data collection and marketing efforts work, you will have solved the customer’s “problem” by offering them the product they needed at the right time with the right offer.
In the same way, continue to cultivate your relationship with customers by asking them relevant questions at regular intervals, whether that’s seasonally, yearly or always-on (depending on what you sell). This consistent interaction with the brand will increase the customer’s trust by ensuring that you, the brand, are always on target with what they want and help you deliver personalized consumer experiences at scale across your entire engagement strategy.
