Zero - Party Data gives customers exactly what they want
The goal for many retailers is to provide a shopping experience that meets – and possibly exceeds – customers’ needs, shile generating an attractive profit.
Success depends on accurately understanding and reponding to customer trends, which requires gathering and analyzing shopper data.
Traditionally, obtaining that information is done by tracking website engagement and point-of-sale data, which only offers retailers part of the story.
Ask for the data you wish to receive
Asking shoppers specific questions about their buying habits is one of the most effective ways to not only learn more about customers’ preferences but also to increase loyalty.
And shoppers – eager to have a more personalized retail experience – are increasingly willing to provide details about their purchasing habits.
By asking for relevant information and limiting the amount of personal information requested, customers are more likely to respond.
They understand their answers, referred to as “zero-party-data”, are targeted at specifits, which can ultimately yield a better customer experience.
According to Forrester Research (2018), Zero-Party Data is data that a customer shares with a brand intentionally and proactively, and can include preferences, purchase intent, personal context, and how the person wants to be recognized by that brand.
Zero-Party Data is based on the acceptance of a relationship of equals, as it only exists with the consistent and repeated voluntary contribution of the people who feed it.
Such a focused approach offers retailers high-value data and is considered by customers to be thoughtful and minimally intrusive.
Evolution of attitude towards data collecting
Years ago, at the dawn of the info-gathering age, when the emphasis was too often on just collecting as much information as possible, customers were skeptical about providing information, fearing a constant barrage of marketing material.
Retailers were reluctant too, not wanting to use data insights too readily as they worried about appearing too “creepy” in their attempts to provide personalized experiences.
Today, those sentiments are reversing. Customers are willing to provide data, especially if they benefit.
For example, bargain hunters will sign up for promotional texts for discounts, while shoppers who are enthusiasts about a brand or particular market may subscribe to a newsletter or blog.
Using OptCulture for Retail Pro makes easy to market to your customers through any and all channels are best for oyour business once they agree to share their information.
Savvy retailers offer an enticement, and customers offer select information in exchange for that valued item.
The retailer receives data that helps inform about appropiate future product selections, store locations, etc.
With OptCulture for Retail Pro, you can do this seamlessly by using a digital receipt to cross-sell or upsell.
Increasingly, customers are willing to provide details to brands when they can clearly understand the reason behind the request.
They will answer surveys or quizzes that help their favorite retailers create more tailored shopping enviroments, and they are eager to provide names of brands they are enthusiastic about.
When a retailer is upfront about what information they want and how the’ll use it, it builds trust, and the builds loyalty: A recent Harvard Business Review stud reported that companies with high loyalty grow revenue 2.5 times faster than their industry peers.
Analysis makes the most of zero-party
Collecting targeted data allows retailers to provide a more relevant shopping experience, and customers respond by offering their loyalty.
Long-term, that loyalty significantly affects revenue and profitability, as brands experience repeat purchases and no incremental acquisition costs.
After harvesting that information, retailers must be able to analyze it effectively.
Retailers use an average of five to six tools to collect feedback and data, but far fewer business invest in solutions to aggregate all the data.
Using business intelligence to analyze the information makes it significantly more useful in providing insights.
Business intelligence that is baked into software and happens automatically takes it to an even greater level of convenience. Retail Pro Decisions is one such POS business intelligence software that offers insights automatically, from every channel.
Ensuring every department uses the same CRM helps to create complete customer profiles, with data accessible among the entire business.
A unified view, augmented by customer-supplied data, supports content optimization and more relevant customer journeys.
Zero-party data, in unison with a focused CRM and targeted marketing strategy, improves the effectiveness of personalization efforts,- benefitting brands, retailers and customers.
Remember that in Cosin we are exclusive partners in Spain and Portugal of Retail Pro. If you are interested in this retail management system or need any other solution for your business please contact us and we will help you.