Consumer data is entering a new era. In response, tech giants are phasing out third-party cookies and turning to zero-party data and first-party data.
Consumer data is entering a new era: EU's GDPR (General Data Protection Regulation) restricts the transfer of personal data. Last year, Google announced blocking third-party cookies from Chrome by the end of 2023. Consumers are also distancing themselves from third-party cookies by using ad blockers and pushing for greater transparency, and, in response, tech giants are phasing out third-party cookies.
As a result, beauty brands are turning from third-party cookies to zero-party data and first-party data — both offer high quality without compromising privacy, but they are gathered and used in different ways.
But, what is Zero- and First-Party Data?
According to Salesforce, first-party data encompasses an individual's site-wide, app-wide, and on-page behaviors, including the person's clicks and in-depth behavior, session context, transactions and how that person engages with personalized experiences. With this input, brands and retailers can predict trends, assumptions, and get into the behavior.
Zero-party data, by contrast, is information users decide to share with you. It may be product-related, like asking specific questions to offer the relevant items and product recommendations. Zero-party data requires direct action from the consumer, which provides beauty brands with better quality and more reliable data. Most importantly, zero-party data tells marketers exactly how customers plan to purchase in the future.
At Revieve, we help brands and retailers treat data as the consumer's voice. Rather than being antithetical or hardly reconcilable, we believe first-party data and zero-party data should be seen as complementary assets. Combined, these can help brands and retailers deliver highly effective, privacy-aware personalized experiences.
Here are four ways how Revieve enables more effective personalization with zero- and first-party data:
1. Unlocking Customers Mindsets and Meeting All Their Needs
Understanding the unique differences between shoppers means you can share suitable product recommendations based on their individual requirements and behavioral data.
With first-party data, brands can get an extensive and descriptive data library to uncover customers' intention to buy specific products. For instance, through Revieve's AI Selfie Analysis, brands can collect relevant data and metrics to drive personalized recommendations, advertising, messaging, offers, and other interactions in the customer journey.
Revieve also empowers brands to collect zero-party data through user selection and user input in the experience. Revieve's questionnaire enables businesses to ask for customers' information in exchange for product recommendations. This helps create valuable experiences to encourage and make consumers' sharing of their preferences more rewarding.
2. Creating a Better Product Discovery Experience
Despite new brands and products entering the market daily, providing consumers with more innovations, educational opportunities, and options to choose from, consumers still feel overwhelmed and can't find products that suit all their needs.
This is where first- and zero-party data comes into play. Rather than guessing what customers want based on third-party data — social media engagement, page visits, or views — zero-party data allows consumers to tell brands exactly what they want. By collecting the data from customers that are willing to share it, brands and retailers can help customers overcome decision paralysis by suggesting tailor-made recommendations.
Today, it's not enough to simply equip customers with tools and technology and collect all the data. Instead, brands and retailers must leverage the data for granular consumer segmentation, leading to precision targeting, better retention, and higher value customer acquisition.
For instance, collecting the zero-party data from quizzes is one of the ways that can help brands and retailers scale. Build product recommenders, customer surveys, routine finders, or consultations to ask customers about their needs and pain points to personalize communication and deliver personalized experiences.
3. Collecting and Securing Relevant Data at Scale
Zero- and first-party data have also become the new standard for beauty product customization. With the integration of artificial intelligence and a partners’ ecosystem, such as Revieve, secure data collection and data analytics can help cosmetic brands predict how consumers will act, purchase, and engage across their preferred channels without compromising safety and efficiency.
Brands are now relying on data and gathering as much relevant data as possible to reduce uncertainty. Companies like Revieve helps beauty brands and retailers collect and evaluate actionable real-time data about their customers, thus increasing the chance of keeping a higher share of customers at a lower cost across channels and all locations.
4. Boosting Customer Loyalty
The positive brand interactions created from zero- and first-party data are a natural precursor to long-term brand loyalty. For instance, once a shopper becomes a customer, brands can continue to receive relevant zero-party data through loyalty, discounts, and rewards programs. In each case, these represent the next steps in the evolution of zero-party relationships, generating compelling, immediate incentives — discounts for loyalty program membership, exclusive invitations to events, and the like — that further drive zero-party data collection opportunities.
The journey continues, the data enriches, and the customer experience deepens. When a brand consistently makes a shopping experience both convenient and accurate, the chances that the customer will return are high — and loyalty programs that collect first- and zero-party data help ensure that they do.