Zero Party Data 101: The Future is Here


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  • Rating and describing recent experiences

  • Personalizing "favorites" so that the categories chosen are what appears to the consumer when visiting your site

The possibilities are endless and vary depending on what industry you serve. Take for example a company like Stitch Fix. You start with a style quiz and then rely on the email "experts" and the zero-party data you give them to service you. Every month, in email marketing paradise, people are like, "heck yes, send me stuff every month and if I like it I will buy it". Consumers are literally asking for stuff to be sent to them. The consumer spends a real amount of time with each package, trying stuff on, giving feedback and progressing her relationship with the company. This is REAL cooperation between consumer and vendor. The consumer is counting on them to get it right and in turn the company is incentivized to get it right because then the consumer spends more money! It's really a win-win situation that The bottom line is that the information collected is done so in a fully transparent way that is non-invasive and doesn't pose the risk of making your customers distrust you. In fact, as noted above, it can actually improve your relationship with customers. Imagine that! How is It Valuable to Your Company? The information ethically collected through zero-party data collection methods allows your company to:

  • Gain valuable insight into consumer demographics and behavior

  • Provide more personalized shopping experiences

  • Obtain information to aid in product development and release

How Does Zero-Party Data Compare to Older Data Types? Zero-party data will soon replace the current data types: first-party data, second-party data, and third-party data. Let's take a look at the fundamentals of each data type and how they compare to zero-party data. First-Party Data First-party data is information that your company collects directly from consumers using its own resources. The pros are that you can verify the accuracy of the data and ensure it is collected in a way that complies with GDPR and other consumer privacy legislations. However, the most common issue is that your company may not be able to collect enough data. This can happen if you are a new company or maybe do not have a way to collect data in the quantities that you need. In which case, you may turn to another data type. Second-Party Data Second-party data is when you purchase consumer data from another company that collected the data first-hand. The advantage is that you know where the data came from and how it was collected. However, you tend to run into the same issue as with first-party data. Since it is still data from only one source, it might not be enough. Not to mention, you have to really trust your source to know that the data you are receiving is accurate. Third-Party Data Third-party data is very different from first and second-party data. The data comes from many different sources and is combined and sold. The big advantage is that you can get as much data as you need. However, the disadvantages are that you may not have access to where the information came from and how it was collected. This can potentially be problematic from a compliance and ethical standpoint and lead to a quality issue. Not to mention, you aren't the only company that has access to the information. Any company that can purchase the same set of data. How Does Zero-Party Data Compare?

  • Zero-party data ensures that all information is collected in an ethical matter and is in full compliance with GDPR legislation

  • Obtain and keep consumer trust by avoiding questionable tactics to get the data you need for marketing

  • Provide consumers with stunning personalized experiences based on information that is voluntarily given

  • Avoid fines and penalties pertaining to data collection

The Solution is Here! Although first-party, second-party, and third-party data have their place in marketing and analytics, zero-party data is the solution that solves the issues older data collection methods present to companies. Onemata is your trusted data and analytics partner and is here to help your company be proactive with your data collection strategies. Contact us to help with a 0-3 party data compliance strategy!