As marketers are shifting their focus away from cookie-based marketing to people-based marketing strategies, many are finding their first-party data (data collected and owned by the company) is lacking not only in scale but also in detail about your customer (and prospects) interests and needs.
Challenges in Expanding Your Data
10 years ago “subscribe to our newsletter” was enough of a call to action for many people to share their email addresses. You might even get a few tidbits of information about who they were. In today’s world, however, a prospect’s email address is valuable currency. There needs to be value exchange for someone to share that information – and if you want to know any more than that you’re going to need to up the offer.
Over the last several years, marketers got comfortable using 3rd party data overlays to help build a better picture of their audiences, most often using data collected through cookies. But the days of the third-party cookie are going away. Not only due to consumers’ concerns about privacy but also due to the fact that cookies weren’t really a great proxy for the individuals who are actually your customers and prospects.
Enter the Concept of Zero-Party Data
In 2020, Forrester Research coined the term “Zero-Party Data (ZPD).” Data that a customer intentionally and proactively shares with a brand, which can include preference center data, purchase intentions, personal context, and how the individual wants the brand to recognize her.
Customer transaction data (aka First-Party Data) is the bedrock of a people-based marketing approach. You can infer a lot from your customer’s purchase habits, whether they are repeat buyers, certain types of products they tend to buy from you, etc. But adding questions in the sales process can hurt the conversion rate, so you need to find other ways to capture that information.
Having true customer data allows marketers to shift their messaging and genuinely focus on the desires of their customers.
Using Sweepstakes to Grow Your Zero-Party Data
Sweepstakes and contests are one of the most efficient ways to collect zero-party data. It provides a true value exchange with the prospect (a chance to win a prize), ensures they use their true identity (you need to provide your real email address in case you win) and the visitor is in the right mindset to share information.
Another benefit of using sweepstakes is that it enables you to collect data on both your current customers as well as prospects – giving you a larger view into your marketplace and audiences.
Best practices for Zero-Party Data Sweepstakes
- Ensure that the prize offerings are relevant (and specific to) your target audience.
- Ask questions that will help evolve your marketing strategy.
- Use multi-step opportunities to capture more data.
- Incentivize later steps with additional entry opportunities.
- Encourage sharing/referrals – let your responders help promote your contest and grow your respondent base.
For information on how we can help you grow your marketing database with relevant consumer information Contact Us today or call (888) 706-5814 to get started.
