First-Party vs. Zero-Party Data: What Marketers Need to Know

Chief marketing officers (CMOs) today know that everything revolves around data. It’s the key to successful campaigns that reach more consumers, but increasingly strict data privacy regulations also dictate how you can collect and use it.

At the same time, consumers in this digital age are savvier than ever. CMOs must thread the needle between collecting what their companies need, maintaining compliance, and respecting customer privacy. That’s why there’s so much conversation around first-party vs. zero-party data.

First-party data is information you collect directly from customers, while zero-party data is what consumers willingly share with your brand. Many CMOs see zero-party data as the future of marketing because it checks all the right boxes. Consumers share what they’re comfortable with, your business gets the data it needs, and the implicit customer consent keeps you compliant with privacy legislation. But how do you shift toward a zero-party data strategy? Here’s what you need to know.

Understanding First-Party Data

One of the challenges of embracing a zero-party strategy is that it’s not always clear what first-party or zero-party data is. Information gathered from website interactions, email sign-ups, customer service interactions, and website visits all fall in the first-party category because your business controls the collection and management of this data. Common first-party data collection strategies include:

• Website analytics, such as tracking page views and conversions.
• CRM systems, where you store contact info, purchase history, and engagement metrics.
• Email marketing platforms, with metrics such as open rates and subscriber preferences.
• Loyalty programs, including purchase frequency data and product preferences.
• Social media engagement, such as direct interactions and views.

How Marketers Use First-Party Data

All of this is critical marketing data. CMOs and their teams use this information for personalization, customer segmentation, and determining which marketing efforts are most effective in driving conversions. This type of data is generally cost-effective because you already own it and the systems it comes from.

The problem with first-party data is that it might run afoul of privacy regulations like GDPR and CCPA without explicit consent and careful management. This type of information also has limited scope, as it only reflects interactions with your brand, giving you no insight into broader customer needs and behaviors. And since this information can be fragmented across different systems, you run the risk of it languishing in data silos.

‍Exploring Zero-Party Data

Zero-party data is the information that consumers intentionally and proactively share with your organization. Think of it as permission marketing. It’s what customers specifically tell you about what they want and how they want to interact with you. While there are many different ways to collect, manage, and utilize zero-party data, the common characteristic is the explicit consent given by the consumer and the control they maintain.

This is different from first-party data because consumers share their preferences and future intentions with you, rather than you observing their past behavior. This directness eliminates the need to infer wants or guess behaviors, giving you sharper, more actionable insights.

‍Why Rewards Drive Better Zero-Party Data

Among the most effective—and underutilized—ways to collect zero-party data is through the use of incentivized value exchange. Research and real-world campaigns increasingly show that when consumers are offered meaningful rewards in exchange for their data, they are not only more willing to share, but also more likely to provide thoughtful, accurate responses. This leads to higher-quality datasets and deeper engagement.

Whether it’s through loyalty points, tokenized rewards, exclusive offers, or other tangible benefits, the power of giving users something in return dramatically improves opt-in rates. Unlike passive data collection, this approach makes users feel respected and in control—key drivers of long-term trust and loyalty.

‍Examples of Zero-Party Data Collection Strategies

Some effective zero-party data collection methods include:

• Loyalty programs with preference profiling, where consumers share information about their interests to earn points or rewards.
  
  
• Personalized onboarding, such as asking new customers about their goals and preferences in exchange for a more customized experience or offer.
  
  
• Interactive polls and quizzes, where users are incentivized to share preferences for a chance to unlock a discount or special content.
  
  
• Contests and sweepstakes, where entry requires users to provide specific data in exchange for a potential reward.
  
  
• Rewarded opt-ins, where consumers are asked direct questions and clearly offered something of value—like digital tokens, cashback, or product perks—in return.

‍

The takeaway is simple: ask permission, offer value, and reap better data. By creating a transparent, mutually beneficial relationship, brands can turn the simple act of data collection into a deeper engagement strategy—and lay the foundation for more trusted, more effective AI-powered marketing.

First-Party vs. Zero-Party Data: What It Means for Marketers

It’s clear why zero-party data is gaining popularity with marketers across industries and business types. Because consumers actively choose to share this information and understand its intended use, zero-party data aligns perfectly with the transparency and consent mandated by privacy regulations. On top of that, your business collects more valuable data than what first-party strategies offer.

Zero-party data can be seen as part of a broader trend of consumer empowerment. Today’s customers are comfortable with digital technology and online shopping precisely because they understand the value of their personal data. Brands that recognize and embrace this shift will be better positioned to build lasting relationships and thrive in the long run.

However, CMOs and other marketers need to keep in mind that zero-party doesn’t have to replace your existing strategies. Instead, there’s an opportunity for integrating first-party and zero-party approaches. Combining voluntarily shared zero-party data with your existing first-party data ecosystem provides a deeper, more detailed understanding of your audience. This enables more accurate segmentation and highly tailored communication, improving marketing campaign performance.

Zero-Party Data Success Stories

Several well-known brands have successfully employed these and other zero-party data collection strategies. For example, the New York Times was able to de-anonymize and engage non-subscribers by asking a few direct questions in exchange for reading their content. Tesco, the UK’s largest supermarket chain, expanded its Clubcard, a loyalty program to offer lower prices to online registrants. In both cases, consumers were rewarded for sharing their data, the key to successful zero-party data collection.

Consumers appreciate more than the rewards. A Forrester Research study found that zero-party data strategies are linked to increases in customer trust and satisfaction. CMOs looking to build one-to-one customer relationships should therefore consider how they can incorporate zero-party data collection into their campaigns.

The Future of Zero-Party Data

Zero-party data is a relatively new concept, so it’s bound to evolve. For example, blockchain technology has the potential to give consumers more control over their data. Blockchain in marketing could offer secure, transparent ways to share data with brands for mutual benefit. Although widespread use in marketing is still developing, decentralized data ownership holds considerable promise.

Why CMOs Should Embrace Zero-Party Data Marketing Strategies

In today's data-driven marketing world, the distinction between first-party and zero-party data is more than semantics—it’s strategic. Zero-party strategies offer a direct line to customer preferences, intentions, and needs, all while maintaining full regulatory compliance. For CMOs, the time to embrace zero-party data is now.

At its core, zero-party data is the foundation of building trusted one-to-one relationships. When a consumer voluntarily shares their preferences in exchange for something of value, it creates a transparent, consent-driven interaction that fosters long-term loyalty. This isn’t just about better targeting—it’s about building a relationship rooted in mutual respect. And in marketing, brand equals trust.

Offering consumers a small reward for sharing their preferences—whether through loyalty points, tokenized incentives, or exclusive offers—can build deeper emotional connections, drive more effective campaigns, and future-proof your marketing strategy in an era of rising regulation and AI-powered personalization.

‍