5 Benefits of Opt-In Consent in the Age of Zero-Party Data

For brands
Loyalty & Marketing • Feb 16, 2023 • 8 min read

With opt-in consent, marketers can effectively tap into the era of zero-party data. Many opportunities lie ahead. Find out how you can take advantage.

Table of contents

  • ☑️Modern times require modern solutions

  • ☑️What is opt-in data?

  • ☑️What is zero-party data?

  • ☑️Differences between opt-in data & zero-party data

  • ☑️Combining opt-in & zero-party data

  • ☑️Benefits of opt-in & zero-party data

  • ☑️Thrive in a cookieless future

Modern times require modern solutions

In today's data-driven economy, it's no secret that companies must be able to anticipate the interests, preferences and behavior of their customers to stay ahead. Consumers are predominantly present on mobile devices, allowing businesses to track more data than ever before. It’s no surprise that mobile-first solutions, like the one Crowny offers, are generally gaining popularity. However, traditional approaches to data collection, such as third-party data, are becoming less effective due to increasing privacy regulations and customer concerns. To collect personal data without the consent of the person in question is declared unethical. As a result, businesses are increasingly turning to opt-in consent and zero-party data to gain insights into their customers, while respecting their privacy. In this article, we will explore the importance of opt-in consent and zero-party data for businesses worldwide.

A Google survey found similar results, showing 48% of people worldwide halted their interaction with a company due to privacy concerns from 2019 to 2020 - Talon

What is opt-in data?

Opt-in data refers to the data that customers explicitly provide to companies, usually in exchange for some sort of benefit. This data is collected with the customer's consent and can include personal information like name and email. Opt-in data is extremely valuable to businesses because it is accurate and specific, allowing for better personalization and targeted marketing over the entire customer journey

What is zero-party data?

Zero-party data, on the other hand, is data that customers share with a business without being prompted to do so. This data includes preferences, purchase intentions, and other behavioral information that customers provide to companies with their activities and interactions with the brand. Zero-party data is especially valuable because it comes directly from the source, providing the most accurate and up-to-date information on a customer's interests and behaviors.

Opt-in data & zero-party data

What are the differences?

Opt-in data and zero-party data are related but distinct concepts in the world of data collection and marketing. Opt-in data is the information that a customer explicitly provides to a business, usually in exchange for some benefit. Zero-party data, on the other hand, is data that a customer intentionally and proactively shares with a business, without being prompted or asked to do so. 

Your loyalty program is a gold mine of zero-party data - Talon

Combining opt-in & zero-party data

Combining opt-in data and zero-party data can be a powerful way to gain a more complete understanding of your customer's preferences and behaviors, and to create more effective marketing campaigns. Here are some ways you can combine these two types of data:

  • Create a comprehensive customer profile

  • Use zero-party data to inform opt-in campaigns

  • Use opt-in data to personalize communications

  • Combine data to create more targeted marketing campaigns

Create a comprehensive customer profile
By combining the information provided by opt-in data and zero-party data, you can create a more detailed and accurate customer profile. For example, if a customer has signed up for your loyalty program and also regularly engages with your brand on social media, you can use both sets of data to understand their preferences, purchase history, and interests. Seamless omnichannel marketing strategies boost the benefits of having a strong customer profile.

Use zero-party data to inform opt-in campaigns
Zero-party data can provide valuable insights into what types of offers and promotions your customers are interested in. You can use this information to inform your opt-in campaigns and create offers that are more likely to appeal to your customers.

Use opt-in data to personalize communications
Opt-in data can provide you with valuable information on a customer's name, email address, and other personal details. You can use this information to personalize your communications with customers and create a more engaging and memorable experience. Providing incentives for engaged customers can help in gathering this data.

Combine data to create more targeted marketing campaigns
By combining opt-in data and zero-party data, you can create more targeted marketing campaigns that are tailored to your customer's interests and behaviors. For example, you can use opt-in data to segment your customers by demographics and use zero-party data to identify which products or services are most popular among each segment.

Overall, combining opt-in data and zero-party data can help you gain a deeper understanding of your customers, create more effective marketing campaigns, and improve the customer experience.

According to Accenture, 54% of shoppers said they are open to sharing personal information and shopping preferences with retailers in order to receive personalized offers

Benefits of opt-in & zero-party data

The main benefit of both principles is that they create value for both the brand and its customers while protecting user privacy. With Crowny, however, there are many more benefits:

  • Guaranteed attention

  • Gauging interest

  • Rich customer profiles

  • Legally safe

  • Strengthening the consumer-brand relationship 

Guaranteed attention
Once a consumer gives consent to a brand to target them with content, the consumers are actively interested in the brand. The identified interest is given on an entirely voluntary basis, making it significantly more accurate than intrusively gathered interest preferences. In the Crowny App, users are asked to provide content preferences. As a result, the users will receive content tailored to the choices they’ve submitted. The content submitted preferences also give a clear indication to businesses what consumers could result in having a higher customer lifetime value.

Gauging interest
Using your user base to ask about their interest in future releases or events to see what your members desire going forward can finetune your planning in terms of, for example, inventory. With Crowny’s incentive-driven content campaign functionalities, businesses can always incentivize their online community to interact with your message. This will give all the responses needed to make well-founded decisions.

Rich customer profiles
Opt-in consent can lead unlock opportunities to build richer customer profiles. To get the best customer profile a vast amount of customer data is unnecessary. Quality and actionable data are way more valuable. An accurate buyer persona with clear purchase intent is the key component a marketer needs to execute effective customer segmentation. By practising community marketing, you encourage your audience to become more engaged with your brand and more willing to give consent to get this valuable information.

Legally safe
Zero-party data is fully compliant with data protection laws, just like the data gathered with user consent through opt-in mechanisms. Concerns about people’s personal information and privacy are out the window. Marketers don’t have to worry about fines or ethical risks. At Crowny, we use only zero-party data or data received through opt-ins.

Strengthening the consumer-brand relationship 
All the transparency and two-way interaction create a sense of trust, which further strengthens the relationship between the brand and the consumer. Effective relationship marketing between brand and consumer improves user retention and customer loyalty. 

Loyalty programs are the key to unlocking zero-party data - TheDrum

Thrive in a cookieless future

As a loyalty program software provider, we understand that the prospect of finding alternatives to third-party cookies in a cookieless future can be overwhelming for many advertisers. However, it's important to shift your mindset and view this as an opportunity. Innovative ways to leverage customer data to develop future campaigns can give you a significant advantage over other marketers. By embracing this shift and investing in new approaches to data collection and utilization, you can not only survive but thrive in a post-cookie world.

At Crowny, we’re working on our future-proof solution. Get early access to a demo of our platform and find out how we make things work.