Customer Analytics: The Data That Really Matters

Relying on cookies to understand your customers is a thing of the past. With browsers prioritizing consumer privacy and features like Apple's App Tracking Transparency, collecting third-party data has become more difficult for e-commerce brands.

To address this challenge, first-party data and zero-party data are key. Gathering information directly from customers allows you to build a more accurate profile of them—an invaluable resource in a cookieless world, where 81% of consumers still prefer personalized shopping experiences.

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Understanding first-party data

First-party data is data a company collects directly from its customers through interactions on its own channels, such as websites, apps, or physical stores. Due to changes in cookie tracking, 52% of marketers consider it a priority.

Examples of first-party data:

• Website browsing behavior.






• Purchase history.






• Email sign-ups.






• Loyalty program engagement.






• Data collected through tracking pixels.






• Payment and transaction history.






• Payment methods used.






• Purchase frequency and patterns.






• Billing information and saved addresses.






• Devices and locations used to make payments.

Benefits of first-party data

• More accurate audience segmentation and targeting.






• More efficient marketing spend.






• Personalized customer experiences.






• Improved transaction security by identifying suspicious payment patterns to prevent fraud.

Ways to collect first-party data

• User registration: Account creation, wish lists, or back-in-stock notifications.






• Social media engagement: Tracking ad clicks, comments, and responses.






• Email and SMS tracking: Recording opens and clicks.






• App usage: Tracking in-app interactions.






• Payment analytics on platforms like Tilopay: Recording payment methods used, purchase history, and transaction behavior.

To maximize the collection and use of this data, you need a robust customer data platform (CDP) that integrates information from multiple sources into a single customer profile.

Understanding zero-party data

Zero-party data is information customers intentionally and proactively share with a brand. Unlike first-party data, it isn't inferred from user behavior; customers provide it explicitly.

Examples of zero-party data:

• Preferences selected in a preference center.






• Survey and questionnaire responses.






• Customer feedback forms.






• Social media responses.






• Chatbot conversations.






• Customer service tickets.






• Payment preferences voluntarily provided by the user.






• The preferred payment method selected in their Tilopay account.






• Preferences for receiving personalized offers or notifications.






• Information entered in surveys or satisfaction forms.






• Voluntarily provided information about budgets and spending habits.

Benefits of zero-party data

• Direct, accurate information about customer needs.






• Greater consumer trust.






• More effective personalization.






• Optimized payment options and promotions based on customers' stated preferences.

Ways to collect zero-party data

• Questionnaires and surveys: Some companies offer a questionnaire to help customers choose the right product, improving conversion rates.






• Personalized pop-ups: Sign-up forms that request specific information, such as product preferences.






• Incentives and discounts: Rewarding customers for providing relevant information.






• Personalization forms on payment platforms like Tilopay: Customers can indicate their preferred payment methods or split payments based on their needs.

The most important aspect of collecting zero-party data is making the process feel natural and nonintrusive, which encourages user participation.

Key differences and synergies between both data types

The main difference between first-party and zero-party data lies in how you collect it:

• First-party data: Inferred from user behavior on your own platforms.






• Zero-party data: Provided directly by customers.

However, these data types aren't mutually exclusive. Combining them gives you a more complete view of your customers. For example:

• Identify prospective customers using first-party data and enrich their profiles with explicit information provided through zero-party data.






• Advanced segmentation: Use both data types to create highly personalized audiences.

Data type	Sources	Examples	Use cases
First-party data	Websites, apps, email, physical stores, payment platforms (Tilopay)	Purchase history, browsing data, payment methods used	Targeted ads, customer segmentation, fraud prevention
Zero-party data	Surveys, quizzes, sign-up forms, chatbots, payment forms	User preferences, interests, purchase intentions, preferred payment methods	Personalized recommendations, targeted discounts, payment method optimization

Privacy and legal considerations

Companies are responsible for protecting their customers' data and complying with regulatory authorities. To ensure compliance:

• Obtain explicit consent from users.






• Protect data on a secure platform.






• Implement data governance strategies.






• Give customers an easy way to withdraw their consent.

Using customer data to drive growth

Combining first-party and zero-party data enables advanced personalization, advertising optimization, and greater efficiency in your marketing strategies.

Example application:

• Tilopay can analyze payment patterns to provide safer, more personalized experiences.






• E-commerce businesses can combine user preference data with purchasing behavior to improve product recommendations.

Conclusion

In a cookieless world, the key to success lies in effectively using first-party data and zero-party data. Integrating them enables more personalized customer experiences, more effective marketing campaigns, and greater customer loyalty. The right technology infrastructure is essential for managing and leveraging this data. With solutions like Tilopay, your business can unify data collection, optimize payment processes, and gain a 360° view of your customers, giving you a competitive edge in today's digital market.