Personas and zero-party data

Although third-party data has not (yet?) been officially abolished, it has certainly fallen into disrepute. This is good for consumers and bad for marketers. Marketers are not monsters (and in their private lives they are consumers themselves). Sure, they need data. But without nasty surprises. In other words: without sudden restrictions, securely, legally and in compliance with data protection regulations. This means that third-party data is as good as out: external providers collect it by taking advantage of the fact that almost everyone who wants to use an app or website clicks on "continue" or "accept" without reading the terms and conditions, let alone the small print. A big "blame yourself" goes out to consumers here - sure, but you have to admit that the processes are specifically made so that you simply click on "accept" - after all, there are only 24 hours in a day and normal people with normal everyday lives have a limited capacity for absorption. Once collected, third-party data is sold by many.
Second-party data also relies on small print and the "accept" button, but is still based on a partnership between just two parties. First-party data leaves out one more party and is only collected by providers directly from customers on their own website or within their own app: e.g. how long they stay on a page, what they click on, what is overlooked, at what point a purchase is abandoned or people leave the page.

What is zero-party data?

Zero-party data is a wonderful tool for customers AND marketers: It is data that a customer voluntarily and actively shares with a company or brand. Meaning: no small print, no bad feelings, no legal gray areas, zero-party data is GDPR-proof. In other words: security for all, and the finest, highly specific data that comes from the heart and that no algorithm could possibly obtain.

How does a company obtain zero-party data?

One thing is clear: not for free. For users to want to share their data and preferences with a company, there must be a recognizable benefit for them.

For example, someone who has been struggling with a problem (be it hair loss, obesity, blemished skin, insomnia, lack of energy...) is probably happy to fill out a questionnaire that gives the company valuable information about consumer behavior, preferences and habits - if in return he or she receives their hair type, skin type, personalized weight loss tips, a sleep hygiene routine or similar. The same applies to exclusive offers for special edition products at favorable conditions or similar in return for answering a few questions. As users provide this information voluntarily and are not prevented from using the website or app if they do not participate, this type of data collection is compliant with data protection regulations. They also have the advantage of being very personal and accurate: a real person shares something about a real pain point, without an intermediary algorithm: companies get first-hand customer knowledge.

In addition to the aforementioned surveys for benefits, there are several other options for companies to obtain zero-party data: For example, simply asking on social networks: "What content are you particularly interested in?" Added value through games appeals to gaming-savvy customers. If a company organizes events, be it webinars, workshops or others, registration is a good way to ask specific questions, e.g. what customers expect from the event, why they are attending and more.
In the B2B sector, white papers, specialist articles or e-books are a good way of offering customers added value in exchange for information about the Buyer Center. Last but not least, the good old loyalty programs are still in fashion and will remain so. Hardly any other means of really getting to know customers is as efficient as exchanging behavioral data and personal details for loyalty points or discounts.

Zero-party data is therefore not only of enormous value to companies and compliant with data protection regulations, but it also leads to greater transparency for customers and a win-win situation - at least in terms of perception.

What do personas have to do with it?

Personas are the key to the efficient collection of useful zero-party data, because: Data-based buyer personas, whether B2B or B2C customers, provide precise information about which customers would be willing to disclose which data about themselves for which type of benefit. In addition, data-driven personas provides information about where exactly these people can be reached with which type of campaign and approach, so that they first learn about the possible benefits and then participate in surveys, loyalty programs or voting, etc.
The benefits of data-based buyer personas start even earlier: They indicate pain points and wishes with pinpoint accuracy and thus already help with product development: product developers can use the data-based persona to develop the ideal product for their target groups. Marketers, in turn, can use the data-based persona for precise targeting. With the right campaigns in the right place, it is then possible to generate good zero-party data so that an upward spiral begins: on the one hand, ever more precise personas and, on the other, ever more personalized products or services for an ever better customer experience. All transparently and in compliance with data protection regulations. A data-driven persona is the starting point and key to this.

Incidentally, the data-based personas from the Persona Institute are based on zero-party data: scientifically collected market research data.