Zero-Party Data: A Cross-Functional Imperative for Modern Brands

Panel Session from Measurcamp Sydney 2024 – Jomar Reyes

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For the month of October 2024 I returned to my hometown of Sydney, a place I left in 2010 for Copenhagen, where I’ve continued my journey in the world of analytics, brand management, and community-building. I was fortunate for this timing to include the hosting of a discussion panel MeasureCamp event in Sydney and here I was reminded of the vast differences and striking similarities between Europe and Australia regarding data practices.

Both regions, despite their cultural nuances, are still evolving in their understanding and application of what’s known as “zero-party data”. As we explored in the panel discussion, zero-party data is a tremendous but underutilised asset, and its potential can only be fully realised through a collaborative, cross-functional approach.

The four panellists included Sarah Crooke, Vincent Koc, Kapil Kamble and Harold Janson (See their bio’s below)

As we explored in the panel discussion, zero-party data is a tremendous but underutilised asset, and its potential can only be fully realised through a collaborative, cross-functional approach.

The Rise and Riddle of Zero-Party Data

Zero-party data offers brands direct insight into what their customers want, going beyond passive tracking to a new level of transparency and engagement. It’s data that customers provide willingly, such as through surveys, quizzes, and explicit feedback. However, the current landscape indicates that both marketers and analysts are struggling to tap into this potential.

While data privacy regulations like Europe’s GDPR have pushed brands toward greater transparency, Australia is only beginning to move in that direction. Many organisations still lack the cross-departmental collaboration needed to effectively implement and leverage zero-party data.

As Kapil Kamble succinctly put it, “Zero-party data is customers willingly and with their own wish, sharing the information about themselves with the brands.” Kapil went on to describe the benefits of zero-party data, noting that it “takes out the guesswork for the organisation, because we all know that the next level now is personalization. If customers are willingly sharing that information with brands, it’s also an opportunity to build that trust with the customers… and it goes a long way in terms of building loyalty.”

This perspective underscores the unique potential of zero-party data. Instead of relying on inferred or tracked information, brands have a direct line to their customers’ true preferences—something that can only be achieved with a conscious and coordinated effort across departments.

In Europe, GDPR has catalysed a shift toward consent-based data collection, sparking a movement to reconsider the ethical dimensions of data use. This trend is beginning to gain traction in Australia, albeit at a slower pace. Yet, even with these regulatory frameworks, the concept of zero-party data remains an elusive goal. As panellist Vincent Koc said, “I would argue that all data should be zero-party data. At some point, the user has to consent to share their data, and that needs to be understood across teams.” His point resonates deeply: for data to be truly valuable, customers must feel involved in the process, and teams must unite to ensure data is handled responsibly and respectfully.

zero-party data is a tremendous but underutilised asset, and its potential can only be fully realised through a collaborative, cross-functional approach

A Collective Effort: Marketing, Analytics, Product, and Brand Management

For zero-party data to be successful, organisations need to integrate silos. A collaborative approach between marketing, analytics, product development, and brand management is essential to not only gather this data but also to use it in a way that genuinely benefits the customer. Each department brings a unique perspective and skill set:

  1. Marketing plays a crucial role in communicating the value of sharing data to customers, making the experience feel worthwhile. This department needs to be on the frontlines, designing experiences that invite users to voluntarily share their preferences.
  2. Analytics is vital in interpreting this data, turning preferences and choices into actionable insights. But more than that, they can serve as an ethical guardrail, ensuring that data is handled responsibly, securely, and in line with customer expectations. As Harold observed, “We got into this space because we just exploited data. If we weren’t doing that, I don’t think we’d be having this conversation. A cross-functional approach, especially with marketing, analytics, and product teams, is crucial.”
  3. Product Management benefits from zero-party data as it enables them to make customer-centric decisions, improving features and offerings that align with genuine needs. By integrating data from direct feedback, product teams can create experiences that feel personal and resonate on an individual level.
  4. Brand Management ensures that all data-driven decisions reinforce the brand’s core values and promises. This team can guide strategy, using zero-party data to shape the broader brand narrative, making it resonate authentically with customers.

This cross-functional approach ensures that data collection is not simply an exercise in gathering information but rather a strategic, customer-centred endeavour. By integrating the insights and expertise of each department, brands can build stronger, more personalised relationships with their customers.

Lessons from Both Sides of the World

As someone who has navigated the analytics landscape in both Australia and Europe, I have observed a shared hesitation and, at times, a misunderstanding of zero-party data’s potential. In both regions, the use of this data is still in its infancy, often overshadowed by a fixation on first- and third-party data sources. “I would argue that all data should be zero-party data,” Vincent explained. “At some point, the user has to consent to share their data, and that needs to be understood across teams.”

In Europe, companies have adapted to GDPR, yet the compliance-driven nature of this adaptation has, in some cases, led to checkbox-style implementations that miss the essence of zero-party data’s value. It’s a reminder that regulatory frameworks, while necessary, are not enough to spark genuine, customer-driven data strategies. Australia, on the other hand, is still moving toward a comprehensive data privacy landscape, with many organisations treating data as a “just-in-case” resource rather than a carefully curated, mutually beneficial asset.

Building Trust Through Transparency and Relevance

A central theme of our discussion was the importance of trust in the data-sharing relationship. To earn customer trust, brands must clearly communicate the value customers receive from sharing their preferences. There’s a critical need for brands to make data collection transparent and show customers how this data improves their experience. “It shouldn’t just be about selling more,” said Sarah Crooke, another panellist. “It should be about making people’s lives easier.” She added, “If I come in every Thursday and buy chocolate ice cream, offer to just deliver it to me—use zero-party data to make life simpler, not creepier.”

Providing value in exchange for data is no longer optional—it’s a prerequisite. For example, a personalised product recommendation or a tailored offer based on explicit preferences can go a long way in building loyalty. But trust is fragile, and it can easily be eroded if customers feel their data is mishandled or misused. As Harold put it, “Without trust, simplicity, and relevance, you’re not going to be collecting zero-party data. You’re going to be collecting zero data.”

Toward a More Personalized, Ethical Future

In our panel, we agreed that personalization is the future, but it needs to be grounded in ethical data practices. Zero-party data, when used effectively, allows brands to deliver experiences that are not only relevant but respectful of customer autonomy. It enables brands to move away from guesswork and truly meet customers where they are.

Moving forward, it is essential for organisations in both Europe and Australia to evolve their understanding of zero-party data, treating it not as an add-on but as a central part of their customer experience strategy. “The reason why zero-party data is important,” Harold explained, “is because you don’t actually know what they want until they flat-out tell you.” This shift will require continued collaboration across marketing, analytics, product, and brand teams, as well as a commitment to transparency and ethical data practices.

As I reflect on my experience bridging two continents, I am excited about the opportunities that lie ahead. Zero-party data has the potential to transform the way we understand and connect with our customers, and I look forward to a future where brands across the world embrace this powerful tool.

5 Actionable tips for integrating Zero Party Data

Here are five actionable tips that brands and organisations can implement based on the insights from the article:

1. Foster Cross-Departmental Collaboration

  • Action: Bring together marketing, analytics, product, and brand management teams to align on a zero-party data strategy. Host regular cross-functional meetings to discuss objectives, insights, and data handling best practices.
  • Why: Zero-party data requires a unified approach to ensure that data collected is relevant, actionable, and used ethically across all customer touchpoints.

2. Communicate the Value of Data Collection to Customers

  • Action: Be transparent with customers about why you’re collecting their data and what they’ll gain from it, such as personalised recommendations or exclusive offers. Clearly outline this value in data collection prompts.
  • Why: Trust and transparency are essential for encouraging customers to share their preferences willingly. When customers understand the value, they’re more likely to engage and provide accurate data.

3. Use Zero-Party Data to Create Personalized, Relevant Experiences

  • Action: Leverage zero-party data to enhance the customer journey, such as sending personalised product recommendations or offering custom experiences based on shared preferences.
  • Why: Personalization builds loyalty and keeps customers engaged with your brand. By using explicitly shared data, you ensure that recommendations are aligned with true customer interests.

4. Prioritise Ethical Data Handling and Build Customer Trust

  • Action: Ensure compliance with data privacy regulations like GDPR and follow principles of ethical data collection and storage. Regularly audit your data practices to maintain high standards of security and customer respect.
  • Why: Customers are increasingly concerned about data privacy. Ethical data handling strengthens brand reputation and fosters trust, positioning your brand as a responsible steward of customer information.

5. Offer Value in Exchange for Data through Incentives

  • Action: Create opportunities where customers gain something valuable in return for sharing data, such as discounts, early access, or tailored content based on their interests.
  • Why: Incentivizing data sharing ensures customers see the immediate benefit of participating, helping build a database of engaged users who trust the brand with their preferences.

About the Discussion Panel

The panellists at the MeasureCamp Sydney 2024 session on zero-party data were:

  1. Jomar Reyes (Panel Host): An Australian professional based in Copenhagen, Jomar is involved with the Brand Leadership Community, focusing on brand services, including data analytics and measurement. He organises events like MeasureCamp Copenhagen and Web Analytics Wednesday, emphasising community-driven growth and brand development.
  2. Harold Janson: With over a decade in the Martech space and 25 years in creative development, Harold oversees sales and strategy at a consulting firm. His extensive experience spans marketing technology and creative solutions.
  3. Vincent Koc: A data specialist with 15-20 years of experience, Vincent has held roles in marketing technology and lectured on AI and innovation at institutions like MIT and UNSW. He also contributes to the Forum as a judge and contributor.
  4. Sarah Crooke: Founder of Melioram, a consultancy aimed at enhancing client analytics and product development. Sarah assists clients in improving their analytics capabilities and product offerings.
  5. Kapil Kamble: A business analyst, throughout his career Kapil focuses on marketing projects, particularly in personalization and building connected customer experiences. He collaborates with various teams to enhance customer engagement strategies.

These panellists brought diverse expertise to the discussion on zero-party data, offering insights into data analytics, marketing technology, and customer personalization.