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The future of loyalty is tied to zero-party data and collaboration!

by, Ray Chelstowski

Over the last year and a half, the way we approach our daily lives has certainly changed. Some of these newly acquired habits will pass as life returns to normal, some won’t. What seems to be clear is that the way we operate digitally has forever changed how we work, play, bank, and shop. Digital consumption and e-commerce enjoyed accelerated growth during Covid, with smartphones having become the central hub of just about everything we do. With the return to brick and mortar less predictable the ability to effectively communicate to consumers via mobile is going to require better data and more personalization.

Until recently, the third-party cookie was the primary tool that brands used to track website visits and collect data that helped them target ads to the right audience. But now with third-party cookie phaseouts by Apple, Google and Mozilla, brands are scrambling to understand how they can acquire the data necessary to continue to effectively target and measure consumer behavior.

At Kognitiv we believe that all begins with capturing Zero-Party data. Zero-party data is personal information that customers proactively share with brands in exchange for incentives that are more personalized. In so many ways, it’s more valuable than first and third-party data have ever been because it isn’t interpretive – the consumer is raising their hand and telling us exactly what they want. Better yet, its 100% consented and privacy compliant.

What we have seen is that consumers are willing to share data when there is a clear value exchange. An April 2020 survey of 1,000 U.S. adults by Epsilon and GBH Insights found that most respondents (80%) want personalization from retailers and are open to brands monitoring details of their activity - especially if it leads to more personalized rewards.


At Kognitiv we are helping bands use loyalty programs as a tool to collect customer data. In joining a rewards program, customers provide brands with their email, phone number, etc. From there, the brand now has a point of contact where it can collect even more data through personalized outreach. Our proposition takes this a step further. What if non-competitive brands share the zero-party data they have on the same consumers in a safe, protected environment. They can then work together to create an ecosystem where personalization expands value in ways that they could never accomplish on their own. We call that “collaborative commerce”.

When brands consistently make the shopping experience both convenient and accurate, the chances that the customer will return are high — and loyalty programs that collect zero-party data can help ensure that they do. When peer to peer collaboration is added to the proposition a new dynamic ecosystem can transform the shopping experience, expand value, and forever change the way brands engage the consumer.

ray.chelstowski@kognitiv.com


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