Gather Zero-Party Data with
Even considering all the hurdles, transitioning to a zero-party data strategy gives retailers a competitive advantage. That’s because zero-party data is authentic, accurate and timely, making it a valuable asset.
As retailers consider how to execute an effective zero-party data strategy at scale that provides meaningful value to the organization, the right customer engagement solutions can help capture accurate information and offer insights to inform the most effective marketing and operational actions.
Use Data Value Exchange to Incentivize Zero-Party Data Sharing
Today’s shoppers expect to receive something in return for sharing their data, and because data brings value to brands, it’s only fair that brands offer something of value to their customers for providing that data. Send out a survey link in an email asking for shoppers to share their experiences or interests, and you’re unlikely to get the results you desire. But data shows that you’ll get a more enthusiastic response — and capture valuable zero-party data — by presenting a value exchange that entices customers.
90%
Of consumers will share their email addresses when presented with the right value exchange
Source: BCG
For most customers, filling out a registration form for a chance to win something is a much more attractive exchange than filling out the same registration form for a newsletter, for example. But building a customer relationship isn’t a one-sided action, and retailers that adopt a strategy with mutual benefits will successfully capture more and better-quality zero-party data.
Implementing Data Value Exchange also reduces the likelihood that customers will provide false data such as a phony email address. Because your customers will want to claim their incentive or prize, they’ll share their most accurate information with you. Encouraging signups for the types of offerings listed below will motivate your customers and embolden your zero-party data strategy:
The looming demise of online cookies and other forms of third-party data makes capturing zero-party data a must-have for brands in 2022. But smart brands know that successful data-gathering is a long-term strategy. Retailers will need to build their customer “portraits” piece by piece, using multiple customer engagement methods to fill in the details over time.
Maximize the Data Assets You Already Have
Don’t overlook the value of the information repositories that already exist across your organization. Loyalty programs provide a trove of data, but retailers can dig deeper into the information to learn even more about customers. For example, reward redemption patterns provide great insight into members’ passions for sports, travel, electronics, entertainment and other lifestyle markers. Even brands that feel they have a clear view of their customers should continuously boost their insight to better engage with their base.
Room for Improvement
14%
As you assess your existing data sets, take the time to be very clear on what you want to accomplish.
Source: Gartner
Optimize engagement via text or video chat
Increase loyalty program participation or introduce new tiers
Drive in-app purchases
of organizations have achieved a 360-degree view of the customer
Only 14%
Look for trends, patterns and gaps in your existing loyalty program intelligence.
Which pieces of additional information would be useful in developing a more
comprehensive view of customers?
How can you leverage the data you have now in the form of new insights to inform
upcoming campaigns?
It’s an exciting time for retailers. Though many struggle to displace their competitors, those with a strong zero-party data strategy can capture market share even in a difficult environment. Developing the right approach to engagement helps build on data collection efforts and creates a synergistic flow between the brand and its customers.
The right loyalty and engagement solutions enable retailers to gather valuable zero-party data directly from shoppers at scale, giving them the insight to elevate marketing actions, optimize assortment planning, develop targeted campaigns and drive revenue.
Clarus Commerce is a leader in loyalty and customer engagement strategies. Our solutions
use strategic incentives to engage consumers throughout the lifecycle of their relationship with
your brand. We help you capture consumers' attention, motivate the behaviors your brand wants to see, and use the meaningful insights generated to promote deeper and more valuable engagement for your customers.
Your customers choose if they engage with you. We give them a reason to. If you’re ready to drive meaningful, data-driven results for your brand, visit claruscommerce.com to learn more.
If you have any questions about your zero-party engagement strategy and want to see real brand examples, reach out to us anytime.
LET’S TALK ENGAGEMENT
Make Data Collection an Engaging Experience
A few prime examples:
In today’s hyper-stimulating environment, there’s too much competition for consumers' attention, so you can’t let prime engagement opportunities go to waste. Unfortunately, that’s what happens when a retailer posts a form on their website and asks customers to fill in their information. It isn’t a brand-building experience, it isn’t a motivating call to action, and it often encourages spammy replies. There are, however, multiple experiential ways to encourage shoppers to share their data as you drive engagement across every touch point.
Remember, gathering zero-party data takes ongoing effort. Every shopper interaction holds the potential for you to capture new information.
Only say they’ve filled out a survey
24%
Even customers who consider themselves loyal to a brand don’t give up a lot of data. In the past 12 months:
Source:
2022 Clarus Customer Loyalty Data Study
Knowing you’re collecting the right type of data starts with having a clear strategy regarding how you plan to use that data. As you craft your strategy, consider what type of data you want to capture and how you can shape your interactions to maximize the quality of the zero-party data customers are likely to share. You may choose to collect:
In addition, seek ways to captivate customers through visual cues, imagery and actions that make them laugh or think. This enhances their enjoyment and makes the experience feel far more interactive. In each case, it’s important to create an environment that’s engaging rather than presenting data collection as a task that customers may view more as a chore than an opportunity.
You can use the data gathered from these experiential strategies to improve your loyalty and digital promotion programs, further personalize your customer outreach efforts and create more targeted marketing actions.
Foundational information (first and last names, customer addresses)
A mere say they’ve shared data with their favorite brand
19%
Creative Engagement Strategies
Yet Retailers Face Pressure to Optimize Customer Data
Evolving customer expectations
Increased competition
No more third-party cookies
Invitations to exclusive events
Access to premium content
Product support
Sweepstakes
Loyalty programs
Rebates
Home, family and leisure pursuits
Product preferences
Price considerations and sensitivities
Social circles and other interests
Adjust your goals based on whether you want to:
Optimize engagement via text or video chat
Increase loyalty program participation or introduce new tiers
Drive in-app purchases
Roll out new products
Roll out new products
Doing so will take some savvy. Data shows that consumers are getting wary of sharing their data:
% of Shoppers Willing to Share Email Address
Source: PrizeLogic, a Clarus Commerce company
The right zero-party data strategy can help retailers embrace emerging consumer trends, increase relevance through personalization and targeted communication, grow market share and stay ahead of the competition. The key element in creating a winning strategy: providing customers with value in exchange for their data.
2018:
93%
2021:
60%
This iPaper will show you how to:
Maximize the data assets you already have
Make data collection more engaging
Incentivize consumers to share their data with a concept called Data Value Exchange
Navigate today’s zero-party data challenges
Navigate today’s zero-party data challenges
Navigating Today’s Data Challenges
Retailers face a range of obstacles in the modern data environment. As consumers express more concerns about data privacy and request more control over their personal information, regulatory pressures also abound, with new data privacy legislation covering a wider footprint than ever before.
Consumers are getting their data rights back — they can stipulate how and if businesses are able to share and utilize their personal data. They can also ask companies to delete their data, something they couldn’t do previously.
But while regulations such as the California Consumer Privacy Act (CCPA), the EU’s General Data Protection Regulation (GDPR) and others offer important privacy protections, some rules lack clarity, leaving brands and consumers with plenty of questions.
In addition, retailers frequently struggle to comply with data deletion requests and other data privacy regulations in this era of decentralized customer information.
Email servers
Agency- and vendor-based systems
Loyalty, CRM & other platforms
Customer Service platforms
Customer
Data Lives
Everywhere
That could mean
offering your shoppers opportunities to:
Win a prize
Learn something new
Enjoy an experience
Receive products
Save money
Save money
When retailers blend a zero-party data strategy into their marketing strategy, that additional wealth of information can deliver tremendous returns for similar spend. Brands can collect huge volumes of compliant zero- and first-party data through mobile, for example, such as app integrations and location information. Understanding where shoppers do their browsing and buying is just one piece of valuable competitive intelligence that can help drive revenue.
Develop a personality profile
for shoppers that connects
them to your products.
Offer a virtual
walkthrough.
Ask compelling trivia questions that lead to
a sweepstakes entry.
Ask compelling trivia questions that lead to
a sweepstakes entry.
Also consider tying contest entry to consumer actions, such as giving feedback after watching a product video or even posting a review of a recent interaction with your support team. It’s also possible to build on this experience (and the value of the data collected) by offering additional entries as the data capture actions become more intricate or time-consuming.
Offer a virtual
walkthrough.
Offer users a free demo of a new video game console and provide a discount on a game in exchange for agreeing to complete a survey about their preferences in gaming technology.
Develop a personality profile
for shoppers that connects
them to your products.
Create a fun experience that’s tailored to your audience. A pet products retailer, for example, may ask customers for their likes and dislikes to match them up with personality traits from popular dog breeds.
Ask compelling trivia questions that lead to
a sweepstakes entry.
Offer a virtual
walkthrough.
Develop a personality profile
for shoppers that connects
them to your products.
Gather Zero-Party
Data with Creative Engagement Strategies
Data with Creative Engagement Strategies
Engagement Strategies
Develop a personality profile for shoppers that connects them to
your products.
Offer a virtual walkthrough.
Ask compelling trivia questions that lead to a sweepstakes entry.