A Guide to Zero-Party Data

The shift away from third-party cookies and opaque tracking methods has changed how marketers approach customer relationships. With regulations like GDPR and CCPA reshaping how data is used, marketers are rethinking how they collect and apply customer insights. Zero-party data offers a more transparent, value-aligned approach in this new environment.

Zero-party data includes information customers proactively share with your brand, such as their preferences, intentions, or values, often through surveys, quizzes, or profile settings. Rather than interpreting passive signals, marketers can gather direct input that reflects real-time wants and needs.

For B2C marketers, this creates an opportunity to build more relevant, respectful engagement. Customers who volunteer information are more likely to expect tailored experiences and are more receptive to them when done right. This level of clarity supports stronger personalization and lays the foundation for long-term loyalty and higher lifetime value.

Zero-Party Data vs. First-Party Data: Key Differences

Zero-party data is information customers proactively share with you. This includes their preferences, purchase plans, personal context, and how they want your brand to recognize them. On the other hand, you passively collect first-party data as customers interact with your channels.

Here's how these data types differ, with a quick look at second-party and third-party data too:

Collection Methods

Zero-party data comes from active, deliberate sharing. You collect it through:

• Interactive quizzes and surveys that customers choose to take
• Preference centers, where they tell you their interests
• Profile information that they voluntarily provide
• Feedback forms that they fill out

For example, when someone completes a "Find Your Perfect Product" quiz, they're directly telling you what they like and need.

First-party data is passively collected as customers interact with you:

• Website browsing and clicks
• Purchase history
• App usage patterns
• Email engagement metrics

The key difference is intent: zero-party data is deliberately shared, while first-party data is observed from behaviors. 

Data Accuracy and Reliability

Zero-party data gives you exceptional accuracy because you get information from the source when you ask people directly about what they want or need.

First-party data, while still valuable, needs some interpretation. When you analyze website behavior, purchases, or app usage, you have to make educated guesses about what these actions mean about customer preferences.

Third-party data typically suffers from much lower accuracy. Since companies outside your customer relationship collect it, it's often aggregated, potentially outdated, and lacks the precision of direct information.

Privacy and Consent

Zero-party data stands out in privacy compliance because it is inherently consent-based and explicit. When customers voluntarily disclose their preferences, they actively participate in data collection.

This differs sharply from other data types. First-party data, while collected directly, often happens passively through website visits or purchases. This creates a privacy gap where people may not realize what information you're gathering, even though they directly interact with you.

Third-party data raises even bigger privacy concerns. Consumers rarely know how their information is collected or used when bought from external data brokers.

With the impending cookie phase-out adaptation, zero-party data becomes even more important for marketers to maintain personalized marketing efforts while respecting privacy.

Third-party data presents even greater concerns. It’s typically collected without direct user knowledge and sold through brokers, making it harder for consumers to understand or control how their information is used.

Google initially planned to phase out third-party cookies in Chrome by early 2025. However, in July 2024, the company reversed this decision, opting instead to provide users with the option to enable or disable third-party cookies, rather than removing them entirely.

Strategies and Best Practices for Collecting Zero-Party Data

Here are effective ways to collect meaningful zero-party data:

Interactive Quizzes and Surveys

Interactive quizzes and surveys gather zero-party data while keeping customers engaged. They encourage participation by offering immediate value, typically personalized recommendations or insights.

Sephora uses various online quizzes, such as the “Foundation Finder,” “Skincare Routine Quiz,” and “Fragrance Finder,” to ask customers about their skin type, tone, concerns, scent preferences, and more. This information is shared directly and voluntarily, making it a textbook example of zero-party data.

What sets Sephora apart is how the brand immediately turns that data into value:

• Personalized product recommendations are delivered on the spot.
• Responses are stored in customer profiles to tailor future marketing, product launches, and loyalty perks.
• The experience feels like a helpful consultation, not a data grab, which makes customers more likely to engage and share honestly.

Quiz Design Best Practices

• Keep them short and focused to prevent abandonment
• Make sure each question helps create a meaningful recommendation, possibly using adaptive algorithms to tailor the experience
• Give immediate results that show the benefit of sharing information
• Use a conversational tone to make the experience enjoyable

The best quizzes feel like helpful consultations rather than data collection exercises.

Preference Centers

Preference centers put customers in control of their relationship with you. These user-controlled dashboards let people manage their communication preferences, interests, and personal details, while providing you with valuable zero-party data.

The beauty of preference centers is that they allow concurrent updates. Customers maintain control of their relationship with your brand, building trust through openness. Instead of guessing what content people want, preference centers give them direct input.

Tools like PossibleNOW's MyPreferences platform help you create robust preference centers that collect valuable zero-party data while maintaining compliance with privacy regulations like GDPR and CCPA. These systems naturally support consent management by recording when and how customers agree to share their information.

Giving customers control over their data and communication preferences builds a foundation for more meaningful brand relationships.

Loyalty Programs

Loyalty programs excel at collecting zero-party data while providing clear value to customers. When you reward people for sharing their preferences and feedback, you can build detailed profiles for personalization while maintaining trust.

Creating a fair value exchange is integral. Customers who see immediate benefits, like points, exclusive access, or personalized recommendations, are more willing to disclose information. Customers need to understand how sharing benefits them, not just your business.

Gamification Elements for Loyalty Programs

• Points systems rewarding profile completion
• Badges for sharing preferences or answering surveys
• Status tiers unlocking better personalization

For example, The North Face's XPLR Pass program collects detailed information about outdoor activity preferences and adventure goals, allowing for targeted recommendations while building a community of outdoor enthusiasts.

When using loyalty programs for data collection, keep requests focused and gradual rather than overwhelming customers with too many questions at once.

Onboarding Questionnaires

Onboarding presents a perfect opportunity to collect valuable zero-party data as the foundation for personalization. By asking a few targeted questions during initial sign-up, you can immediately start tailoring the customer experience.

Netflix shows this perfectly. When you create an account, it asks you to select shows and movies you enjoy, then uses this information to curate recommendations. This feels natural because it happens when customers expect to provide information and see immediate value from their preferences.

Asking too many onboarding questions can overwhelm new customers and increase drop-offs. Focus on collecting only the necessary information that delivers immediate value. For other data points, use progressive profiling, strategically requesting additional information as your relationship develops.

Combining thoughtful onboarding questions with ongoing opportunities to share preferences creates a strong foundation for personalization while respecting your customers' time.

Incorporating Zero-Party Data in Marketing Strategies

Zero-party data gives you opportunities to create highly personalized campaigns based on information customers intentionally provide.

Personalized Product Recommendations

One of the most potent uses of zero-party data is delivering accurate product recommendations based on stated preferences rather than guesses. Unlike behavioral data that needs interpretation, zero-party data clearly shows what customers actually want.

Function of Beauty, a DTC brand offering customized hair, skin, and body products, built its business around zero-party data. When customers visit the site, they’re prompted to take a detailed quiz about hair type, structure, scalp moisture, fragrance preferences, color goals, and more.

Every product recommendation is based solely on the information the customer chooses to share; no tracking or inferred data required. The results lead to a fully personalized product formula with the customer’s name on the bottle, reinforcing a sense of ownership and personal relevance.

This precision drives real business results. Customers get product suggestions that truly address their needs, increasing both confidence and satisfaction. This leads to higher conversion rates, bigger average orders, and stronger loyalty as shoppers recognize the value in their personalized experience.

Customized Content and Messaging

Zero-party data lets you deliver targeted content that genuinely resonates with each person's interests. By using information customers have directly disclosed, you can create communications that feel relevant rather than generic.

Email marketing also becomes much more effective with personalization based on customer-provided data. For example, Mockingbird, a baby gear brand, customizes both email frequency and content based on details like customers' due dates. It sends different content at different stages, focusing on reviews early on and highlighting specific stroller features closer to the due date.

You can improve social media targeting by creating specific audience segments based on stated preferences rather than inferred behaviors. The same applies to website content, where you can dynamically adjust what visitors see based on their shared interests.

Segmentation and Targeting

With zero-party data, you can create specific segments that reflect genuine needs, allowing for precise audience segmentation. Tools like Pixis can help you target your audiences with more precision. 

For example, a home goods brand might create segments like "remote workers," "busy parents," and "DIY decorators" for highly targeted campaigns. Each segment receives personalized messaging and product recommendations that match their unique situations.

Additionally, leveraging tools like Google Ads Lookalike Audiences can help you expand your reach to new customers who share characteristics with your zero-party data segments.

Customer Data Platforms (CDPs) also help integrate zero-party data with existing data. Combining zero-party data with first-party behavioral data creates comprehensive customer profiles that unite stated preferences with observed behaviors. This allows for more sophisticated targeting and personalization across all marketing channels.

Challenges and Considerations in Zero Party Data Collection

While zero-party data offers major advantages, adding collection strategies comes with challenges. Understanding these obstacles and how to address them is important for organizations wanting to use this valuable data source.

Customer Participation

Getting customers to share information is one of the biggest hurdles in zero-party data collection. Three strategies can help address this challenge:

1. Clear value exchange: Customers need good reasons to share information voluntarily. To motivate participation, offer tangible benefits like personalized recommendations, exclusive discounts, or better experiences. Be clear about what value they'll receive for their data.
2. Gamification: Making data collection fun through quizzes, polls, or interactive experiences significantly boosts participation. When sharing feels engaging rather than transactional, consumers participate more willingly.
3. Transparency: Being honest about how you'll use customer data builds trust. Clearly explain your data practices, emphasize customer control, and provide easy ways for customers to update or remove their information. This openness addresses privacy concerns and establishes the trust needed for ongoing data sharing.

These strategies help you overcome resistance and create sustainable approaches to collecting valuable zero-party data while maintaining customer trust.

Data Management and Integration

Managing zero-party data means overcoming technical challenges when integrating it with existing customer databases and systems. Traditional data infrastructure may not handle the unique characteristics of zero-party data, which requires more sophisticated approaches.

Many organizations invest in Customer Data Platforms (CDPs) to consolidate zero-party data with other data types in a unified customer view. These platforms act as central hubs where you can access and activate customer insights across channels.

Successful integration also requires collaboration across departments and channels. You'll need to work with IT to define technical requirements and with legal teams to ensure compliance with regulations. 

Maintaining Data Accuracy

Unlike behavioral data that updates automatically as customers interact with you, zero-party data can become outdated as preferences change over time.

This challenge requires proactive maintenance strategies:

• Periodic preference updates: Regularly prompt customers to review and refresh their preference data.
• Incentivized updates: Offer small rewards like discounts, loyalty points, or exclusive content when customers update their preferences, making maintenance beneficial for both parties.
• User-friendly preference centers: Create intuitive dashboards where customers can easily view and change their stated preferences anytime, giving them control of their data.
• AI-powered prediction: Use machine learning algorithms to analyze patterns in zero-party data alongside behavioral signals to identify when preferences might shift, helping you know when to request updates.

Consistently refreshing zero-party data maintains its primary advantage: high-quality, customer-provided information for relevant personalization.

Embrace Zero Party Data for Competitive Advantage

Zero-party data offers a powerful solution for marketers who want to build meaningful customer relationships while overcoming marketing challenges.

By creating thoughtful zero-party data collection through interactive quizzes, preference centers, and gamified experiences, you establish a fair exchange that benefits both your brand and customers.

Ready to start leveraging zero-party data? Here are concrete actions to take:

1. Create your first interactive quiz – Develop a simple product recommendation quiz that collects key preferences while providing immediate value to customers.
2. Launch a preference center – Add a basic preference center where customers can control their communication preferences and share their interests.
3. Invest in a CDP – Evaluate CDPs that integrate zero-party data with your existing systems for a unified customer view.
4. Run a pilot program – Test your zero-party data collection with a small segment before scaling across your entire customer base.

Incorporating zero-party data strategies requires technology investment and careful planning. However, the rewards, like deeper customer insights, stronger loyalty, and sustainable personalization capabilities, provide a significant competitive advantage that will only grow more valuable as privacy regulations evolve.