Building strong customer relationships is crucial for businesses to succeed in today's digital age. In recent years, marketers have relied heavily on first-party and third-party data to understand their customers better. However, there's a new kid on the block: zero-party data, which has the potential to revolutionize the way businesses interact with their customers. In this article, we'll explore how leveraging zero-party data can help you build better customer relationships, what it is precisely, and how to gather and use it effectively.


Kasper Andersen, COO & Partner

The New Essential for Successful Customer Relationships

Zero-party data is a relatively new concept that refers to data intentionally and proactively shared by customers with businesses. This type of data differs from first-party data, collected by companies through their channels, and third-party data, collected by outside sources. One of the main advantages of zero-party data is that it provides businesses with a more comprehensive view of their customers. By asking customers for their preferences and interests, companies can better understand what drives their behavior and what they are looking for in a product or service.

For example, a company that sells athletic apparel might ask its customers to provide information about their fitness goals and the types of workouts they enjoy. With this information, the company can tailor its marketing efforts to specific customer segments, such as runners or weightlifters, and create targeted campaigns that speak directly to their interests and needs. Another benefit of zero-party data is that it can help businesses build stronger relationships with their customers.

By engaging with customers and showing that you value their input, you can establish trust and loyalty, leading to long-term relationships. This can be especially important in industries where customer retention is critical, such as subscription services or luxury brands.

In addition to providing businesses with valuable insights into their customers' preferences, zero-party data can also help build trust and foster stronger relationships between brands and customers. When customers feel that their data is being used transparently and ethically, they are likelier to continue engaging with the brand and making purchases over time.

Overall, zero-party data is a powerful tool that can help businesses create more personalized customer experiences, build stronger relationships, and ultimately drive more sales. As consumers become increasingly savvy about how their data is being used, businesses prioritizing transparency and ethical data practices will be best positioned to succeed in the long run.

Another benefit of zero-party data is that it can help businesses comply with privacy regulations, such as GDPR and CCPA. These regulations require companies to obtain explicit customer consent before collecting and using their personal information. By collecting zero-party data, businesses can ensure they have obtained this consent and use the information transparently and ethically.

Zero-party data is becoming increasingly crucial for businesses wanting to build solid and long-lasting customer relationships. By collecting and using this information to create more personalized experiences, companies can differentiate themselves from their competitors and create a loyal customer base.

How is this different from the first-party data we are collecting today?

The truth is it may not differ a whole lot. However, zero-party data has grown as a term since GDPR, Apple ITP, etc has made it more difficult to collect data about your users. On top 25-35% (average in Scandinavia) don't provide consent when being asked to provide cookie consent, yet 66% of consumers expect a personalized experience by their favorite brand.

In essence, zero-party data is information that consumers consciously share with brands. It’s characterized by explicit consent and is typically shared in exchange for personalized experiences or incentives. It is particularly powerful because it is consumer-driven, as customers willingly provide insights into their preferences, intentions, and needs.

First-party data is information gathered directly from interactions with customers or users. This can be through website analytics, CRM systems, or other touchpoints. Unlike zero-party data, first-party data is not always provided explicitly; it is often derived from user behavior and engagement.

While zero-party and first-party data have virtues, they’re most powerful when used in tandem. Zero-party data can provide invaluable insights into customer preferences and desires, while first-party data can offer a wealth of information on customer behavior and interaction patterns. Together, they can help create a complete customer profile, enabling marketers to deliver highly personalized and engaging experiences.

In conclusion, as data continues to be the linchpin in contemporary marketing strategies, understanding and leveraging the unique characteristics of zero-party and first-party data can empower businesses to cultivate more profound, more meaningful relationships with their customers.

Incorporating zero-party data into your marketing strategy offers several benefits

First, knowing what information you're asking for and why is essential. Transparency is critical when it comes to collecting data. Customers are more likely to share their information if they understand how it will be used and how it benefits them. Ensure you explain how the data will be used to improve their experience with your brand.

Second, make sure you create a seamless experience for customers. Collecting data should be smooth, so make sure your forms are easy to fill out and the questions are relevant to the customer's experience of your brand. Consider using interactive forms that make the process more engaging and enjoyable.

Third, use the data you collect to create personalized experiences tailored to each customer's needs and preferences. For example, if a customer has shown a choice for a particular product or service, use that information to recommend similar products or services that they may be interested in. By showing your customers that you're listening and responding to their input, you'll create a more profound sense of connection and loyalty that lasts long after the sale.

Once you've ensured you take those into account, these are some of the benefits you'll get.

Better targeting

By collecting data directly from your customers, you can create highly targeted campaigns that resonate with them, leading to higher engagement and conversion rates.

Deeper insights

By gaining a deeper understanding of your customer's preferences, behaviors, and needs, you can create more effective marketing campaigns and product offerings, increasing customer satisfaction and loyalty.

Increased trust

By asking for customers' input and using that to create bespoke experiences, you're establishing a stronger sense of confidence in your brand, leading to greater customer loyalty and higher retention rates.

Remember, personalization doesn't just apply to product recommendations. It can also extend to marketing messages and communication channels. Use the data you collect to determine the best way to reach each customer, whether it's through email, social media, or other channels.

Finally, remember the importance of privacy. Ensure you're collecting data in a way that complies with regulations and respects your customers' privacy. Consider offering opt-in options for certain types of data collection, so customers can choose what information they want to share.


Zero-party data has the potential to be a game changer in customer relationships. Businesses can create more profound, meaningful connections that lead to greater engagement, loyalty, and sales by involving customers in the process and tailoring marketing efforts to their needs and preferences. By following best practices for gathering and using zero-party data, businesses can harness the power of this new approach to create truly personalized experiences that resonate with customers on a personal level.