For the upcoming cookie-less era. Open the future of marketing with customer-centric "zero-party data."

With heightened awareness of personal information leading to stricter cookie regulations these days, many companies are grappling with countermeasures for targeting and customer support. How will customer data be acquired and analyzed going forward? As the search for new methods to replace cookies becomes an urgent priority, "Zero Party Data"—acquired with customer consent—is gaining attention as a post-cookie solution.

This time, under the theme "Can Zero-Party Data Be the Savior in the Cookie-Less Era?", we explore new marketing pathways through customer-centric data collection. Whether you're considering new customer information collection methods or seeking to further enhance customer experiences, we invite you to explore this topic.

Why Zero-Party Data is Gaining Attention as the Cookie-Less Trend Intensifies

While the market size for web advertising in digital marketing is rapidly expanding, growing awareness of personal information protection is driving movements to regulate cookies, which temporarily store information about users visiting websites. Cookies have been an indispensable mechanism for web advertising, but concerns about the potential for identifying individuals when combined with other information have led to increasing global criticism.

For example, the EU's "GDPR (General Data Protection Regulation)" and California's "CCPA (California Consumer Privacy Act)" define cookies as "personal information," imposing stricter legal requirements for their handling. In Japan, the Personal Information Protection Act was revised in 2020 and took effect on April 1, 2022. This now requires customer consent for the use of cookies as online identifiers.

In response to these developments, major platform companies are also moving to restrict cookie usage. Apple implemented Intelligent Tracking Prevention (ITP) in Safari to block site tracking. Google also plans to discontinue support for third-party cookies in Chrome by 2023. For more details on cookie regulations and ITP, see this article.

As the digital marketing world approaches this cookie-less era, "zero-party data" is gaining attention as an alternative. To understand its characteristics, let's clarify how it differs from first-party data, second-party data, and third-party data.

・First-Party Data (1st Party Data)
Customer data collected independently by a company on its own websites or apps. This includes attribute information entered by customers during registration, as well as behavioral history and purchase history on the company's site obtained via cookies. It also encompasses data collected without requiring customer consent.

・Second-Party Data (2nd Party Data)
Customer data collected by other businesses. What constitutes first-party data for one company is second-party data from that company's perspective.

・Third-Party Data (3rd Party Data)
User data collected by third parties with no direct relationship to the customer. This refers to external data that is difficult to collect solely by the company or its partner companies. Under current cookie regulations, third-party cookies—which enable cross-site tracking of user behavior—are facing increasingly strict restrictions. The challenge now is how to reduce reliance on them (*1).

・Zero-Party Data
Personal information data collected directly from customers with their explicit consent. This term, coined by Forrester Research, is also known as "explicit data." Its key feature is its independence from cookies, unlike other data types. Collection methods include surveys and social media posts. As it is data gathered by the company itself, it is also referred to as "consent-based first-party data."

This consent-based Zero Party Data, collected with customer permission, is expected to grow increasingly important as a means of properly handling personal information. Furthermore, self-reported Zero Party Data is highly reliable and contains valuable insights into customer preferences and interests. It is therefore highly valued for achieving optimal personalization in marketing.

Is it enhancing the customer experience? That is the key point in utilizing zero-party data.

The previous chapter introduced the basics of zero-party data, comparing it with other types of data. So, how are companies actually collecting and utilizing zero-party data? We will now examine three specific examples to deepen our understanding.

Case 1: [Video Streaming Service] Displaying Preferred Videos via Recommendation Features
A well-known representative use case of zero-party data is the recommendation feature in American video streaming services. When creating an account, this service asks customers to select preferred titles from a video list. Based on these selections, recommended titles are displayed as a list upon service activation, making it easier for customers to find content aligned with their preferences.

Case 2: [Fashion Brand] Gathering Information Through Fashion Diagnosis
A major fashion brand conducted an outerwear fashion diagnosis campaign on its website for existing VIP members to collect zero-party data. The diagnosis gathered customer preferences and style choices when selecting outerwear. At the end of the campaign form, it presented recommended new items based on the diagnosis results, achieving a high participation rate.

Case 3: [Apparel Store] Improving Customer Service by Linking Surveys and Purchase History
A Dutch apparel company digitized its membership cards. During registration, a questionnaire captures customer preferences. Customer IDs are unified across online and offline channels, and purchase histories are also stored as data. By cross-referencing this with the "self-reported" information from the questionnaire, the accuracy of recommendations on the online store improved. Furthermore, in-store customer service became more personalized, enhancing the overall experience and achieving high customer satisfaction.

Zero-party data is information customers voluntarily provide to companies. As seen in the above example, this allows companies to gather information through simple survey formats without incurring the costs of complex system implementations. However, simply demanding data unilaterally may not encourage customers to actively share their information. So, how can companies get customers to willingly provide the desired information? The above example offers valuable insights on this point as well.

What these three examples share is that they provide customers with "value" worth sharing their data for. If companies can use the provided information to personalize the customer experience, it can become an incentive that outweighs the effort of inputting and sending data, or the risk of sharing personal information. By clearly showing the benefits customers gain from providing information, and if customers find this convincing, they should become more willing to share their data.

To enhance the quality of collected data, strategically designing survey questions and formats is crucial. Care must also be taken to avoid causing anxiety during data collection. In this regard, the second fashion brand example—which presented data collection as an enjoyable content experience through a fashion diagnosis—offers a valuable strategy.

The first step to surviving the cookie-less era begins with customer-centric design

So far, we've confirmed that when handling zero-party data, "data collection" and "customer value" must be considered as a set. Next, we'll delve into how this corporate stance impacts customer relationships.

Whereas first-party and third-party data collection was primarily driven by the company, zero-party data is provided by the customer. Therefore, it is crucial to start from the customer's perspective.

Customers provide data seeking value, and companies repay them by enhancing CX (Customer Experience) based on that data. Trust builds between both parties within this flow. From the customer's perspective, if they feel the quality of service improved because of something they casually answered during registration, their trust in that brand will likely increase.When a website accurately and efficiently recommends products matching their preferences, customers might feel the brand "understands them well," increasing their attachment. In other words, when done right, acquiring and utilizing zero-party data not only provides essential marketing insights but also strengthens the trust relationship with customers.

Conversely, if questions are framed solely from a corporate perspective, they risk being perceived as nothing more than "annoying surveys," potentially undermining the trust built so far. Similarly, bombarding customers with numerous questions under the mindset of "let's ask just in case it's useful for marketing" can give the impression of treating them lightly, potentially sparking distrust.It's problematic to merely jump on the bandwagon of "data utilization is important" without defining a purpose and vaguely setting up a data collection system. It's crucial to prioritize the "customer perspective" and design with the mindset of "entrusting us with your data."

To achieve this, clearly state the purpose and intent behind data collection. Create a system where customers can see their data is being effectively utilized and that value is being returned to them. Furthermore, rather than starting with analysis tools or specific tactics, an essential mindset is "facing the customer and carefully listening to their voice."Treat each individual's voice with care, sincerely consider what form of "repayment" is possible, and act upon it. It is through such diligent effort that trust is strengthened, inevitably leading to the collection of high-value zero-party data.

Furthermore, analyzing collected data can help uncover latent needs. Integrating this with MA tools and CRM systems enables operational efficiency and optimization. By strategically building the "data collection, analysis, and utilization" cycle while grounding it in customer trust, the path to effectively leveraging zero-party data becomes clear.

When handling zero-party data, it's crucial to prioritize customer-centric design rather than proceeding with a "method-first" or "strategy-first" approach focused solely on tool implementation, analysis, or creating D2C Inc. sites reflecting consumption trends. Doing so may help differentiate your company, positioning zero-party data not merely as an alternative solution but as a new breakthrough for enhancing CX.While cookie regulations significantly impact digital marketing, they could also serve as an opportunity to create new customer experiences.

※1 While "data" from first-party to third-party sources is often referred to as cookies, it also includes personal information entered by customers on websites and information collected offline.