From Zero-Party to 3rd Party Data, Everyone Should Be Invited to the Party
New Year’s predictions have become part and parcel to the turning of the new year, even springing up before the last notes of Auld Lang Syne are sung. Everyone has an opinion, and I shared mine in Adweek on Christmas Eve - “2019 Will See a Change in How Sports Are Processed Over Social Media” - Link here: http://bit.ly/2HePIuZ
Of course, like many of you, I love reading and challenging predictions across all topics, including politics, the economy and various industries outside of my own. A recent prediction piece published regarding the retail industry piqued my interest. 10 Predictions in Retail in 2019” by Greg Petro, January 4, 2019 (Forbes). The author, Petro, predicts that we are going to see a major shift in what data we leverage in marketing to consumers—a prediction with which I agree. Petro goes on further to assert that gone are the days of 3rd party data. As an isolated proposition, this may be true, but I believe that 3rd party data still has a place as a sounding board against a customer’s own 1st party data. Yes, 1st party data is required in today’s GDPR world-- that’s a given. But to raise zero & 1st party data on an altar all its own is to miss the value created by overlaying zero & 1st party data with anonymized 3rd party data. Relying solely on zero & 1st party data means you are looking into your customers’ data without regard to behavior as it relates to the broader market. Brands and properties pushing out content to capture consumers’ attention need to leverage other datasets to gain a 360 degree view. Looking into what other products your customers are consuming provides perspective on what else is vying for their attention.
In sum, utilizing multiple datasets (3rd + 2nd + 1st and zero party data) is a wise investment, and converging and maximizing the use of those datasets to achieve the highest and best use of customer 1st and zero party data will pay in dividends.
10 Predictions For Retail In 2019
Greg Petro, Contributor
Link: http://bit.ly/2CoK9UQ
1. Retailers Will Get Personal with Zero-Party Data
Consumers are becoming more aware of their rights thanks to Facebook and GDPR, which is making way for a new age of privacy and personalization. If 2018 was the year that marketers were forced to wean themselves off third-party data sets, 2019 will be the year they shift to “zero-party data.” Zero-party data is information intentionally shared by the consumer, which is empowering marketers to build direct relationships wExperience in Logistics or Supply Chain Domain is a plus.ith consumers, and, in turn, better personalize their marketing efforts, services, offers and product recommendations without the guesswork.
A recent survey found that 64 percent of consumers are actually fine with retailers saving purchase history and personal preferences if more personalization is offered. Forrester agrees, noting in a recent report that it is possible for personalization and privacy to coexist, and in 2019, the industry will “say goodbye to third-party data and hello to zero-party data. Data customers own and willingly provide to brands.”
