Learn how to implement a zero-party and first-party data strategy and discover top zero- and first-party data types to deliver highly effective, privacy-aware personalized experiences tailored to each customer.

The data landscape in beauty is shifting. How we collect data in 2023 is drastically different from how it was collected before. Today, the amount of customer data will continue to expand, as will the privacy regulations and customer demands for a personalized experience. 

The leading beauty brands and retailers have already started working on a customer data-first strategy. And if you still need to create a plan for the strategic use of customer data, there is no time like the present to start. The longer you wait, the further behind you will be from your competition.

Furthermore, data privacy regulations are growing more stringent every day, with more and more people becoming aware of how much data they're giving up to companies daily. And as enforcement becomes stricter on governing regulations and laws like the GDPR, the way you collect data matters more than ever. With this in mind, businesses require better customer data collection, consent, and protection. 

Beauty brands and retailers now have an opportunity to improve the customer experience by leveraging their zero-party and first-party data. They both come directly from consumers and can provide richer insights for organizations. 

What is Zero- and First-Party Data?

The rise of first-party and zero-party data has become the new frontier for personalization. Gathering consumer insights and capturing their motivations, intentions, and preferences at scale enable beauty companies to personalize each customer's experience. This removes the guesswork and provides the data required to make the right connections with customers.

First-party data can be utilized to analyze customer behavior and serve relevant content and products based on browsing intent signals. First-party data are a unique user's behavioral actions and demographics, such as purchase history, website activity, location, support calls, etc. Zero-party data, on the other hand, has the potential to leverage first-party data and personalize business activities based on customer preferences. In addition, zero-party data is the most effective way to collect relevant customer insights as the individual explicitly gives this information to an organization, which is likely to be more accurate than other sources. This leads to a heightened sense of trust in the brand and subsequent interactions.

Combined, both data types can help beauty brands and retailers deliver highly effective, privacy-aware personalized experiences tailored to each customer. Contact us to learn more about how to implement a zero-party and first-party data strategy and personalize your customer experience with the Revieve Personalization Platform.

Gather Top Zero- and First-Party Data Types To Leverage Personalization At Scale

Beauty businesses can do a lot with zero- and first-party data. With data accuracy comes a more personalized experience that users are more receptive to, ultimately yielding stronger engagement rates. But first, brands and retailers must have a strategy around what information to collect, how to use it to segment and target customers, and how to store and protect that data to ensure prospects and customers trust the organization.

To build an effective data strategy, beauty businesses should understand what information they can collect with zero- and first-party data throughout the customer journey. Check out the top zero- and first-party data types you should  gather with AI beauty tech.

  1. Transactional 

This is information that you capture from transactions and your actionable metrics. For example, it records the number of users, the completion and conversion rate, the add-to card rate, AOV, revenue, the payment method employed, and other attributes associated with the transaction. This data is usually captured at the point of purchase/point of sale.

With this in mind, brands can further personalize the user experience, communication, and special offers to existing customers, allowing for stronger retention and LTV. In addition, by delivering customers the experience they prefer, brands will build more intimate and deeper relationships with their shoppers through the power of zero-party and first-party data as they engage across the site, chat, email, and other platforms.

  1. User Profile

One of the best ways to utilize zero- and first-party data is to build a detailed and in-depth user profile. This profile can include information like demographics (age and gender), user input data about skin, hair and makeup, their concerns, preferences, and location data. By understanding your customers on a deeper level, you can better target your marketing efforts and personalize the overall customer experience.

Moreover, beauty businesses that can exploit the power of AI/AR-powered platforms to understand customer behaviors better and unlock shoppers' insights and intentions will outperform their competition. For instance, Revieve data indicates concerns like Wrinkles, Eyebags, and Acne, which showed the highest overall volume in 2022. By taking a closer look at user behavior by gender group, we can also say that wrinkles and fine lines were the most common skin concerns for the female group in 2022, while men were most concerned about eyebags. 

Moreover, our deep technology enables beauty brands and retailers to determine your customer's lifetime value, and the source of this data is integral to the results.

  1. Preferences 

Harnessing the data available from customer interactions allows companies to market products and prices appropriately—and reap the rewards. With the help of zero- and first-party data, beauty businesses can identify critical factors that are often overlooked—such as the pricing, product preferences, and product properties (vegan, cruelty-free, etc.) — and reveal these motives/drives for each customer segment and product.

For instance, our AI-powered product recommendations consider the selfie results, user preferences, & geodata and cross-preference them with the partners' product database to provide personalized recommendations for each unique user. This, in turn, enables beauty brands and retailers to display and recommend products beyond their shopping lists. 

Furthermore, the data collected helps retailers and brands receive critical information on every individual buyer, such as their product preferences, food allergies, behavior, and motives behind their purchases. This approach enables beauty businesses to display products in-store and craft customized promotions to attract buyers and increase sales.

  1. Other

When analyzed accurately and applied strategically, zero-party and first-party data can vastly improve your customer relationships. As Forrester says: "Zero-party data is precious and will improve the effectiveness of your firm's personalization efforts… Ultimately, zero-party data can reduce marketing waste for a brand and improve the lives of its customers – a win-win situation for everyone involved."

Once you build an effective zero- and first-party data strategy, your customers will be eager and excited to see the new campaigns, purchase more, and engagement will rise.

To learn how to apply zero-party and first-party data to drive outstanding personalized customer experiences across channels – and if Revieve Personalized Beauty Technology Platform is the right fit for you – request a demo today.