The Rising Loyalty Need For Zero-Party Data

For most major brands, cookies (small text files stored on the browser) have been the primary tool used to gather rich data on who their customers are and what kind of special offers they would most like to receive. But consumers have grown concerned about who collects this data, how their behavior is tracked, and what companies are doing with the information. This has prompted Google Chrome to announce that they will end support of third-party cookies altogether next year.

This end to the cookie era has many brands scrambling for a way to maintain the kind of personalization that customers demand – especially those who participate in loyalty programs. At Kognitiv, we believe the solution is Zero-Party data.

What is Zero Party Data?

Unlike third-party data, which is passively collected from cookies, zero-party data refers to information that is intentionally and proactively shared directly by individual consumers. This can be shared in several ways. Polls, quizzes, sweepstakes, questionnaires, and other mechanisms can be deployed to capture highly specific insights into consumer wants and needs.

It’s win-win!

Both consumers and brand win when zero party data is collected. Customers control what is shared and companies gain access to information that’s more useful than what they gathered with cookies. Now they are enabled to deliver targeted personalized offers more effectively, in the moment. Everything is transparent.

Personalization is the endgame.

A recent survey of more than 5,000 global respondents found a 33% year-over-year increase between 2020 and 2021 in the number of consumers interested in personalized offers. Zero party data makes it possible to offer better personalization than cookies ever could. Ultimately, zero-party data isn’t just a new way to do targeted ads or email campaigns — it’s about transforming how companies engage with and demonstrate that they are listening to their most valuable stakeholders: their customers.

ray.chelstowski@kognitiv.com

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