A term used in the context of data collection and privacy. It refers to data that customers intentionally and proactively share with a brand or company. This can include personal insights, preferences, feedback, profile information, interests, consent, and purchase intentions. Key characteristics of Zero-Party data:
- Voluntarily provided: Customers willingly and actively provide the information to the company.
- Explicit consent: Customers are fully aware that they are sharing their data and have given explicit permission for its use.
- Direct from the source: The data comes straight from the customer, without intermediaries or third parties.
- Mutually beneficial: Customers share data in exchange for better personalization, improved products, or other benefits.
The concept of Zero-Party data has gained importance as consumers become more privacy-conscious, and regulations like GDPR emphasize the need for explicit consent in data collection. By leveraging Zero-Party data, companies can build trust, improve customer experiences, and create more targeted marketing campaigns while respecting user privacy.
Zero-party data differs from First-Party (1p) data, which is data collected by a company during its interactions with customers (e.g., website analytics, purchase history), and Third-Party data, which is data acquired from external sources not directly related to the company-customer relationship.
Forrester Research coined the term Zero-Party data to distinguish it from First-Party (1P), Second-Party (2P) which is data shared between parties, and Third-Party (3P) data, which is data received or purchased from another source.
By leveraging Zero Party data, companies can build trust, enhance personalization, and create meaningful relationships with their customers while respecting their privacy and preferences.