Lance Wright, Author at Bazaarvoice Fri, 16 Feb 2024 15:51:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 Privacy regulations: How to build a first-party data strategy https://www.bazaarvoice.com/blog/privacy-regulations-how-to-build-a-first-party-data-strategy/ https://www.bazaarvoice.com/blog/privacy-regulations-how-to-build-a-first-party-data-strategy/#respond Wed, 14 Feb 2024 21:51:08 +0000 https://www.bazaarvoice.com/?p=23546 Third-party data is on the way out. Relying on third-party cookies to drive your e-commerce sales is a thing of the past — and first-party data has stepped in to fill the void. 

E-commerce and brand managers will soon have to rely on first-party data — the data you collect directly from customers yourself.

Not just to stay compliant with privacy regulations such as the GDPR and CCPA, but because a first-party data strategy can enhance your revenue, provide value internally for your business, give you better customer data, and ultimately help you build a relationship with your customers. 

Chapters:

  1. What is first-party data?
  2. How to use first-party data
  3. How to collect first-party data
  4. First-party data e-commerce strategies
  5. Examples of first-party data strategy in action
  6. Maximize your first-party data


What is first-party data?

First-party data is customer information and data that you collect yourself — directly from your audience. Nobody else owns this data except you. It cannot legally be sold or shared, it doesn’t follow users outside of your website, and it’s made up of two different “types” of data.

1. Declarative data

Declarative data is the data that your audience self-reports, such as their name, email address, location, and more. It doesn’t just have to be rote demographic data, however. It can also be data such as their income level, the number of pets they have, and more. It’s especially useful for understanding consumer behavior and finding out what triggers buying behaviors.

Example: A customer informs you that they have pets: two cats. This information comes directly from the customer.

2. Behavioral data

Behavioral data is data based on the activities of a site visitor. This type of data is often collected via the use of a first-party cookie or tracking pixel. This cookie is unique to your site and your site only, and never follows the user across the web. Tools like Google Analytics are commonly used in conjunction with behavioral data to analyze site performance and user behavior, giving marketers and managers granular details about what parts of their website are performing and what parts need improvement.

Example: A customer likes several cat pictures and pages on Instagram but does not explicitly tell a business they have any cats. It’s up to the business to make that inference.

How to use first-party data

Before you start on your first-party data strategy, there’s some housekeeping and tactics that will need looking at first.

Align with stakeholders on what first-party data you’ll collect

First, you need to align with stakeholders on what first-party data you’ll collect. This way, you have buy-in from everyone on your team, and everyone’s needs are equally represented. Because this first-party data will become your only data source, it needs to be as robust as possible, while still keeping within regulations.

Aligning with stakeholders requires some prep on your end. Before meeting with the different stakeholders in your organization (managers, executives, legal, IT), come up with a list of metrics you’d like to track. Some common ones include sales interactions, emails, phone numbers, site behavior, purchase history, and common demographic information, such as age and location.

Next, you’re going to want to run this list of possible data points by your stakeholders, justifying why you want to collect each data type and how you’re going to do it, so there isn’t any friction between departments over what data is collected and how it’s being used.

Update to the latest Google Analytics data model

Google Analytics version 4 includes new ways to segment and track users, is GDPR and CCPA compliant, and is built to take on first-party data by utilizing AI to fill in data gaps that third-party data would ordinarily have filled.

The ever-popular analytics tool specifically addresses issues with the retirement of third-party data and inconsistencies in cookie consent options by using AI to fill in missing customer information, meaning you can still collect and analyze user data even if you don’t have a complete user profile.

Additionally, Google Analytics 4 helps you easily find and delete user data upon request, which means you can stay compliant with “the right to be forgotten.”

Looking to get started with a site implementation? Google has some valuable resources and a step-by-step guide to implementing Google Analytics 4 properties on your website’s analytics property.

Build new personas and segment your audiences based on first-party data

Because you’ll be using first-party data moving forward, you need your personas to be as accurate as possible; working with inaccurate or baseless buyer personas is a huge waste of time and resources. But you can’t keep relying on third-party data to build your buyer personas. Ask any marketer how accurate their third-party data is, and you’ll probably get back a “not very.” Survey data collected by Deloitte unearthed some startling facts about first-party data’s ugly cousin:

  • Over 66% of respondents said that the third-party data about them was zero to 50% accurate as a whole
  • Around 71% of all third-party data was deemed inaccurate after a review by survey respondents

As part of a first-party data strategy, personas based on first-party data are crucial to providing a personalized e-commerce marketing and advertising experience. Buyer personas based on first-party data have a number of benefits, including a 10–20% reduction in marketing and sales costs, a 20% higher customer satisfaction rate, a 10–15% increase in sales conversion rates, and a 20–30% increase in employee engagement.

Start by leveraging all the first-party data you can to build your personas. This might include data like location, age, purchase history, audience research, CRM data, or user account information, all of which can be consensually collected without the use of third-party data or cookies.

How you divide your customer base is entirely up to you. But some common shopper segmentations include: 

  • Shared characteristics and behaviors
  • Common interests
  • Demographics
  • Region
  • Purchase or browser history
  • Frequent shoppers or buyers
  • New customers
  • Recent cart abandoners
  • Browsing or buying habits
  • Engagement levels
  • Average AOV (e.g. big spenders, sales hunters, etc.)

Build a data governance strategy that keeps you compliant

Data governance is the process of ingesting data and managing that data’s lifecycle from creation to storage to deletion.

Both the GDPR and CCPA have clauses that allow users to request their data be deleted — “the right to be forgotten” and “right to erasure.” Data governance strategies play a huge role in both of these clauses — you can’t comply with a data deletion request if you can’t easily find and manage that data in the first place.

Failure to govern your first-party and third-party data in accordance with regulations could put you in regulatory hot water. The GDPR imposes stiff fines for companies who fail to comply. Amazon was hit with a massive $887 million fine for not complying with the GDPR.

Failure to govern your first-party and third-party data in accordance with regulations could put you in regulatory hot water.

Building a data governance strategy requires you to consult with two teams: legal and IT. Legal will be able to tell you what needs to happen to the data you have from a governance standpoint. IT will be able to help you find a solution to managing your data.

Start collecting first-party cookies in place of third-party cookies

You may have seen those popups on some websites asking to place cookies on your browsers while also offering you the chance to opt in or out of data collection. That’s how first-party cookies are placed in a way that’s compliant with regulations — and it’s a crucial aspect of your first-party data strategy. There’s a few key ideas at work here:

  • Customer information gathered from first-party cookies is gathered consensually
  • This data is being used on this site and only on this site and will not follow the user across the web

Ordinarily, companies use third-party cookies — cookies that have been placed on users’ browsers by third-party sites — to gather customer data. These cookies are placed without the consent of the user, directly violating the GDPR and CCPA, which prohibit the non-consensual placement of third-party cookies. How do you start collecting first-party cookies?

You can do this manually by consulting the different teams in your org about how you’re going to implement a first-party cookie strategy. Design the language and copy, then take your plan to legal, and finally to IT, who can implement a first-party cookie solution. 

If you’re a small or medium-sized business, services like Cookiebot can help you set up collection popups. Larger organizations can rely on tools like OneTrust to do this at scale.

Value exchange

Value exchange is a tactic used to entice customers into exchanging their personal information for high-value content or services (you might recognize this as giving your email in exchange for an e-book or a discount from a company). Value exchange is consensual data collection that’s compliant with the GDPR and CCPA, and it’s mutually beneficial to your business and the customer. It’s a win-win that provides some great, long-term benefits.

Common value exchange tactics are to offer discounts, which help you gather emails, and loyalty programs, which can improve your bottom line and your brand’s relationship with your customers. You get their data and earn their trust, and the customer gets a valuable piece of content, item, or service.

Additionally, it represents your commitment to user privacy and data transparency. You’re being upfront about what you’re collecting, why, and what the customer is getting in exchange for their data. This type of approach is great for building goodwill with your customers and helps you stay compliant with regulations.

How to collect first-party data

Collecting first-party data starts with building users’ trust, gaining their consent, engaging the customers in ways that prompt them to volunteer information, and having the right tech to gather first-party data in place. Here are some tried-and-true methods of collecting first-party data:

Be transparent about the data you do collect. Customer trust is built on transparency, but one in five consumers still believe businesses don’t care about privacy. Separate your business from the pack by explaining how you’re going to use the data you do collect and how it’s being collected in your cookie consent popup.

Ask for reviews from customers. Asking for customers to review products in your e-commerce store is not only a great way to improve your sales performance but also gain access to customer data consensually.

Offer quizzes to your customers in exchange for personalized recommendations. Customers like personalized product or content recommendations — 35% of Amazon purchases come from product recommendations, and 75% of Netflix watches come from recommendations based on customer data. Learning a buyer’s likes, dislikes, and interests is a great way to improve the customer experience, your ROI, and consensually gather first-party data.

Let customers make accounts in your e-commerce store. Accounts are a veritable treasure trove of first-party data. By letting customers volunteer information via user-created profiles, you give them an incentive to return to your e-commerce store and can also mine their accounts for useful bits of data.

Reward repeat customers with a loyalty program. Building a successful customer loyalty program provides you with a dynamic source of customer data — a data source that is constantly evolving and is updated by the customer — as well as better sales numbers and increasing your brand loyalty. It’s a win-win for everyone.

Ask users to participate in surveys. Customer satisfaction surveys are an excellent way of improving your products and services. Surveys can also function as a source of first-party data, giving you the ability to tie interactions back to specific customers so you can identify points of friction within your e-commerce store or customer journey.

First-party data e-commerce strategies

Follow these best-practices for using first-party data to drive e-commerce growth.

Retarget hesitant shoppers

Retargeting is a super effective way to use first-party data to reach customers who have shown interest in your products but haven’t completed a purchase. Use data from website visits to create targeted ads that remind them about their viewed or wishlisted products or items left in their carts.

This subtle-yet-not-so-subtle nudge brings reluctant customers back to your site and also nudges them to complete their purchases.

Generate personalized product recommendations and promotions

With 91% of consumers more likely to shop with brands that provide relevant offers and recommendations, implementing this strategy into your e-commerce marketing plan is a no-brainer. Utilize purchase and browsing history to tailor offers and product recommendations that are most likely to appeal to each customer.

These can be displayed on product pages, in email campaigns, and even during the checkout process, and should include related or complementary items that encourage upsells and cross-sells to increase average order value.

Enhance the shopper journey

Strengthening customer relationships is paramount for any e-commerce business’s growth. The stronger the relationship, the greater the trust. And the greater the trust, the deeper the loyalty — which just so happens to convert to higher online revenue. 

Analyze your first-party data to identify any pain points and areas for improvement. This will allow you to optimize the customer experience by reducing any friction throughout the conversion funnel. For example, your first-party data might highlight that many of your customers make their exit during checkout after they see limited payment options.

So then you could add more payment methods, such as buy now, pay later.

Strengthen your loyalty program

A recent study found that 79% of consumers are more likely to do business with a brand because of its loyalty program, which translates to increased customer retention and revenue. Your best approach for making your loyalty program a reason that shoppers seek out your business?

Begin by using your first-party data, such as shopper preferences and previous purchases, to tailor your rewards to each customer. 

And with third-party data going away, loyalty programs are going to be more important than ever when it comes to customers actively sharing their information. With a well-executed, personalized loyalty program, you can increase your customers’ lifetime value, drive repeat purchases, and create champions for your brand.

Target shopping cart ditchers

Customers often leave your site and abandon their full shopping basket with no intention of ever returning to complete a purchase. While this might seem like a waste of time, it’s actually a great opportunity to build connections with online consumers you might never have heard from again.

First-party data can identify those who have recently abandoned shopping carts, and you can then send targeted email reminders or offers to encourage them to complete the purchase. This strategy is proven to work well, especially when an incentive like a limited-time offer is included. 

Looking to catch cart abandoners before they leave your site? Machine learning tech (like Bazaarvoice) can use first party data to identify when a shopper is likely to abandon, and intercept before they’ve made their exit.

Implement dynamic pricing

Dynamic pricing can help you maximize revenue by charging different prices to different customers at different times, optimizing based on each consumer’s willingness to pay. Determine whether this hyper-personalization strategy could benefit you by looking at first-party data like customer preferences, buying behavior, and historical purchases.

You’ll also want to take a look at competitor pricing to ensure you’re not over (or under) reaching. From here, you can adjust prices based on your customer segment and offer discounts to customer groups who would benefit from them most to encourage purchases.

Create personalized campaigns

A large part of your marketing budget is likely going toward advertising. Take your wealth of first-party data, including purchase history, browsing behavior, and demographics, and use it to create highly targeted campaigns that spark interest in your segmented groups.

For instance, a furniture retailer may target a group that has all purchased the same sectional with ads featuring a matching chair or ottoman, along with a limited-time discount if they buy it within a set time frame.

Don’t forget to test your strategies

Testing different strategies and messages based on first-party data is paramount to determining what resonates best with your audience.

Make sure to continuously refine your marketing and personalization strategies using A/B testing, and experimenting with different messaging, offers, and channels.

You can then use first-party data to measure the impact of these changes on key metrics like conversion rates, click-through rates, bounce rates, and average order value.

Examples of first-party data strategy in action

First-party data is used like any dataset to improve your products, services, revenue numbers, or processes. In the following examples, you’ll notice a common thread throughout: a strong first-party data strategy is in place, and best-practice data collection techniques are used to do a lot more than just target customers for ads or remarketing.

B2C — The slipper store

An e-commerce store selling fun and stylized slippers severed its ties with its data vendor in order to build a first-party data strategy. Upon visiting its website, users are greeted with a prompt asking for their email and phone number in exchange for a 20% off coupon. The user fills in the form and collects their discount.

During checkout, the user is then prompted to create an account to speed along the transaction and manage future purchases. The customer creates an account, enters their shipping and billing information, and completes the transaction. The e-commerce store now has some data points it can use to help improve its products or services.

But that’s not all: first-party data can be used to retarget and nurture leads during the sales process.

B2B — Applicant tracking software vendor

An applicant tracking software (ATS) has a new website and a blog it’s using to capture organic leads. Employees notice that while the blog itself is attracting a fair number of leads for the company, once users navigate to the rest of the website, they bounce within seconds, most never completing an action beyond clicking through a few pages.

The company’s first-party data strategy helps uncover the problem. Using a first-party data cookie and Google Analytics 4, the vendor can see the users coming in via the blog, attempting to schedule a demo with the CTA link on the homepage, and then bouncing. Upon analysis, the vendor realizes that the form isn’t opening when users click the “schedule a demo” CTA. They re-work the form but have another problem on their hands: the vendor has no way of remarketing to leads who didn’t convert.

They turn to first-party data to help. The vendor creates high-quality e-books and assets and then gates them at the bottom of their highest-performing blogs, asking for some basic customer information, such as their email and phone number. Now the vendor can send personalized email content to their leads, educating them on the benefits of ATS in their business and qualifying them for a sales conversation.

Maximize your first-party data with Bazaarvoice

E-commerce managers and brand managers who don’t embrace first-party data are living on borrowed time. Regulations such as the GDPR and CCPA, in conjunction with unanimous motions to quash third-party data and cookies, have put additional pressure on businesses, that often don’t have the time or resources to prepare for third-party data’s retirement.

An easy solution is insights and reports tools from Bazaarvoice. Rather than waste time hiring third parties, the tools help you analyze customer behavior and sentiment, build your brand, and source more reviews to diversify the voices in your first-party data strategy.

Get started ]]>
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Zero-party data: A personalization superpower https://www.bazaarvoice.com/blog/zero-party-data/ Mon, 30 Jan 2023 12:14:10 +0000 https://www.bazaarvoice.com/?p=39039 Zero-party data is the newest kid on the block when it comes to customer data. But don’t let its youth fool you. Zero-party data isn’t just a buzzword — it’s the future of personalized marketing in a world of strict privacy regulations.

In this Long Read, we’ll discuss what zero-party data is, why it’s essential in a privacy-first world, and how you can use it to create personalized customer experiences.

Chapters:

  1. What is zero-party data?
  2. Understanding the difference: zero-party data vs. first-party data
  3. How to collect zero-party data
  4. Know the weaknesses of zero-party data
  5. Protect your zero-party data
  6. Zero-party data examples
  7. Make the most of your zero-party data


Data collection can be a tricky subject and at a time where data is increasingly-protected, it can be even trickier to source and collect. But it’s important because personalization is how you reach consumers. The fastest-growing companies drive 40% more of their revenue from personalization. That’s the beauty of zero-party data collection — it’s a personalization powerhouse for e-commerce.

Without zero-party data, you’re like a salesperson in a shop trying to guess someone’s needs just from their looks. With zero-party data, you’re talking to the person to form a complete picture of them and then offer the perfect solution.

What is zero-party data?

Zero-party data is information a customer willingly shares with a business. Examples include communication preferences, interests, and product feedback.

Zero-party data has a low legal risk and is generally more accurate than other types of information as it’s collected directly and with consent from the consumer. (Zero-party data does have some flaws, which we’ll get to later.)

Examples of zero-party data is information collected through:

zero-party data

Understanding the difference: Zero-party data vs. first-party data

Not so long ago, there was no distinction between zero- and first-party data. But shifting consumer expectations around personal data collection and privacy have created a need for a more granular classification of the types and methods of data collection by corporations.

Zero-party data is what someone tells you. First-party data is what you infer from someone’s actions and behavior. Understand the exact definitions of each term, their differences, and why these data types are becoming increasingly important.

First-party data

First-party data is information collected from customers’ interactions with a business, such as website visits, purchase history, and customer service conversations.

You collect first-party data with cookies on your own channels and platforms, so it’s as reliable as zero-party data since you’re the source. First-party data carries a slightly higher legal risk since customers may be unaware you’re collecting this information about them.

💡 Head over to the section Start collecting first-party cookies in place of third-party cookies in our article “Privacy regulations: How to build a first-party data strategy” for more details on how to get started with first-party cookie collection.

Examples of first-party data is information collected through:

  • Website visits
  • Past purchases
  • Product analytics
  • Marketing campaign metrics
  • Customer response time (on marketing outreach or customer service interactions)
  • In-store data (like how much time a customer spends in a store)
zero-party data

The increasing importance of both data types

Accurate and extensive customer data is essential for creating personalized marketing and excellent shopping experiences. Stricter privacy regulations mean zero-party and first-party data are the only viable sources of information for such initiatives.

Regulations like the GDPR and CCPA, plus Google and Apple’s phasing out of third-party cookies, are forcing companies to turn to zero- and first-party data.

Gartner estimates that by 2023, 65% of the world’s consumers will have their data protected by regulations. They also found that 82% of marketers have access to zero-party data, but only 42% know how to put it to good use.

How to collect zero-party data

Planning is essential when collecting zero-party data. You must have the right tools and privacy policies. But it’s also necessary to understand the weaknesses of zero-party data and what information you need to achieve your business goals.

Collect data intentionally

First, know what information you want and why. Without this intention, you may not get the data you need. Or worse, hoard info you don’t use or aren’t allowed to store.

Create a plan to figure out what zero-party data you need and where to get it by following these steps:

  1. Identify the points in your customer journey that can benefit from personalization. For instance, if conversions in your shop’s checkout are satisfactory but you lose many new customers during onboarding, then focus your personalization efforts there
  2. Determine which data you need for such personalization. Which information would help create a better experience at the point you selected in the customer journey? In the onboarding example, this could include the types of products your customer is interested in or their familiarity with your company and services
  3. Plan when and how you can ask for the required information. Look at the customer journey again and determine the best places to ask for data. Sometimes this is the same as the point of personalization. In other cases, asking for the data a step earlier may be more effective, for example, through a welcome email campaign, which then personalizes the subsequent onboarding experience
  4. Ensure all stakeholders agree with your plan. Stakeholders from all areas of your business should review and approve your plan, such as Legal, Product, and Customer Support. They may identify potential issues you overlooked or need to authorize the use of properties they manage.
  5. Avoid collecting and storing data you don’t need. Doing so reduces legal risks and makes finding, analyzing, and using the information you need more straightforward and cheaper

Pick a collection method that suits your goals and audience

Deciding how to collect your zero-party data depends on two factors: the type of information required and the format customers are most likely to respond to, like surveys, quizzes, or sweepstakes.

For example, surveys are well-suited for gathering detailed information, while quizzes are good for extracting general preferences quickly. But young people might prefer a fun quiz over a long survey. And someone on a laptop might have more time to complete a survey than a person doing a quick visit to your site on mobile.

You need to consider all these factors when deciding on the best collection method. Here’s a list of the most critical aspects to take into account, each with an example:

  1. Where you’re asking for the information. Typing a lot of text can be cumbersome on mobile
  2. The age and interests of your customers. Younger people may be more likely to play a game than older customers
  3. Your brand’s style and tone of voice. A playful quiz isn’t suitable for a formal, corporate business
  4. The type of information you need. Surveys are more effective than other methods for gathering detailed information
  5. The available time. A happy customer may be more willing to spend time filling out a questionnaire than an unhappy one when providing feedback
  6. Familiarity with your company. Loyal customers are more likely to trust your brand and share information
  7. The need for incentives. New visitors or customers who have churned may need incentives, such as discount offers, to provide information
  8. The ease of data analysis. Analyzing data from multiple-choice questions is easier than from open-ended ones

Have the right tools to collect zero-party data

Collecting zero-party data requires tools that are both capable and compliant. Capable means you can get the data you need in a way that customers are comfortable with. Compliant means the tools adhere to privacy regulations, creating an auditable trail of how information was collected and allowing customers to delete their data.

To make sure a tool is capable, check whether it has:

  • The functionality to collect the data you need
  • Integrations with the rest of your tech stack, like marketing automation and analytics platforms
  • A straightforward and smooth user experience for your customers, and accessibility options for customers with disabilities
  • The flexibility to customize its look and feel for your band and audience.
  • An easy implementation process

To ensure a tool is compliant, audit its security and privacy features by asking:

  • What data encryption and access control mechanisms does the system provide?
  • Are there audit logs to track who accessed data, when, and how?
  • Does the platform comply with applicable privacy regulations?
  • Does it offer customers control over their data, including the ability to delete their information?

💡 See the table in the previous section for specific tool suggestions, such as for running online surveys, sweepstakes, or quizzes. We also recommend Google Analytics 4 for collecting first-party data. To learn more about setting it up, read the “Update to the latest Google Analytics data model” section of our first-party data article.

Use your first-party data to start collecting zero-party data

Strange as it may sound, you often begin collecting zero-party data by using first-party data. For instance, you could send out a survey via email using contact info from their account. Or you launch a chat window with a question triggered by a product someone viewed on a webpage.

Analyze what first-party data you have to use for collecting zero-party data. Common sources include:

  • User accounts to collect contact details, communication preferences, and interests 
  • Email marketing opt-ins to send emails for promotions, discounts, gathering feedback, and other marketing initiatives
  • Social media interactions to gain feedback and insights into what content (topics) customers engage with
  • Customer service conversations and support tickets to ask questions and identify common issues customers are having
  • Mobile app push notification opt-ins to send mobile promotions, polls, and other short requests
  • In-person or phone interactions with customer service or sales representatives to collect feedback and preferences

Use data to follow up or personalize immediately

Don’t let data sit idle once you have it. When customers see the information they provided benefits them immediately, they’re more likely to share even more data in the future.

A popular approach is sending people a discount or reward straight away, like access to exclusive content. You can also personalize product recommendations or the shopping experience itself, say by hiding or highlighting specific sections of your website or app based on people’s answers to a poll or a question you ask during onboarding.

Other options are to personalize search results, emails, and even prices based on the zero-party data you collect from people.

Complement zero-party data with first-party insights

Zero-party data is what someone tells you, while first-party data comes from people’s actions. Action sometimes speaks louder than words, and words might occasionally speak louder than action. But mostly, actions and words together speak loudest.

Combining first-party data with zero-party data can provide more context about customers’ behavior and actions. Generally, zero-party data gives more insight into why people do things, and first-party data helps you understand how and what people do on your platforms.

Say you notice customers abandoning their shopping carts. In that case, you can use web analytics (first-party data) to see what pages they visited and how long they stayed on each before leaving. To understand why they left, you can use a survey (zero-party data) to ask what made them abandon their cart.

Know the weaknesses of zero-party data

We’re big fans of zero-party data because it’s usually more accurate than information collected in other ways. Still, recent research suggests zero-party data can be prone to various flaws you need to be aware of.

Zero-party data relies on people telling you about their own behavior or thoughts. Decades of social and cognitive studies have shown that the way you ask questions affects answers and that people often struggle to understand the true motivations behind their actions.

Typical causes for inaccurate zero-party data include:

  • Careless responding. People often respond randomly toward the middle or end of a long survey. Even short questionnaires can lead to incorrect responses. Accepting privacy policies without reading them can also fall into this category
  • Vague questions. Ambiguous wording may cause people to give different answers because everyone understands the prompts differently; vague questions generate vague answers
  • Uncommon words. Brands should use widely known words when collecting data, and non-native English speakers have an even higher chance of being unfamiliar with unusual words
  • Faulty scales. Multiple-choice questions with not enough answer options can lead to inaccurate data. For example, not having a “Don’t know” option can force people with no opinion to make a choice that doesn’t reflect how they feel. (💡 For a comprehensive overview of answering options for different types of questions, use article on survey answering scales)
  • Desirability biases. People may give answers they think are desirable rather than their true preferences. This phenomenon is known as social desirability bias
  • Affective forecasting. Studies on “affective forecasting” show people are poor at predicting their future choices and emotions. This finding is significant for brands and retailers collecting zero-party data. Answers about future desires and behaviors give limited insight into what consumers will want, like, and do in the future

Protect your zero-party data

You must protect your customer information from cyber attacks, data breaches, and other external threats. But don’t forget to pay attention to what happens inside your company. Rules for your employees on accessing and storing data are also critical.

E-commerce companies can start to protect themselves from these threats by taking these three steps:

  1. Implement a security program with strong authentication, encryption, and access control for all customer data
  2. Monitor networks and systems for suspicious activity, like abnormal login attempts or data leakage
  3. Educate employees on the importance of data security and the steps they can take to keep customer information safe. Such precautions include using strong passwords, being aware of phishing emails and unsecured Wi-Fi networks, and not sharing customer data via email or instant messengers (even internally)
  4. Establish operational procedures for when an attack or breach does happen

Finally, explain how you use people’s data and your procedure for deletion requests, a right many consumers have under privacy regulations like the GDPR and CCPA. Doing so can help you avoid potential legal issues with customers.

Zero-party data examples

Many businesses use zero-party data to improve the outcomes of their marketing and sales efforts. Here are two e-commerce brands that do it well.

Quotatis uses zero-party reviews to enhance its services and customer satisfaction

Quotatis connects homeowners with construction professionals, so its customers can easily find the ideal tradesperson for small to medium-scale home improvement projects.

At the end of each assignment, Quotatis sends customers an email asking them to share their opinion of the construction professional through Bazaarvoice’s Ratings & Reviews solution. To get more zero-party data (i.e., the number of collected reviews), Quotatis has added SMS as an additional channel for collecting feedback.

A team at Bazaarvoice moderates all submissions to ensure that only customers who have purchased an installation package can leave a review. Once collected, Quotatis publishes the reviews on their platform and on the affiliate website where tradespeople offer product installation services.

When a service gets a score lower than four out of five, Quotatis customer service contacts the customer and tradesperson to investigate the problem.

The Quotatis algorithm uses customer ratings to identify the ideal professional for a particular assignment. The company also chooses their “Tradesperson of the Month” based on these zero-party customer reviews.

💡 Read the entire case study here

Oak Furnitureland collects zero-party product photos to boost sales and engagement

Oak Furnitureland is a furniture retail chain with 75 locations in the UK. In these stores, customers can inspect the product quality by trying items like sofas and dining chairs. However, creating the same experience online was a challenge for the retailer.

So the brand partnered with Bazaarvoice to find a solution. They began collecting zero-party data in the form of pictures taken by customers of the furniture in their own homes, which they sent to Oak Furnitureland. The company used these images on its Instagram page to create social proof for potential customers by giving them an idea of how the furniture would look in their homes.

“We find that UGC is just a lot more relatable for our audiences,” said Laura Quigley, head of PR and communications for Oak Furnitureland. “It provides inspirational content that they can see and they can engage with. Real pictures in real settings show how our furniture blends seamlessly into customers’ everyday lives, where you’ve got dogs jumping on the sofa and children chucking their school bags in the hallway at the end of the school day.”

Bazaarvoice’s Galleries makes it easy for Oak Furnitureland to curate pictures customers share quickly. Instead of spending hours selecting photos manually, they can now have an attractive gallery with the best images online in minutes.

The conversion rate from Oak Furnitureland’s social program has doubled since they started using zero-party pictures in this way. Customers who interact with their website galleries also have a 21% higher average order value than others.

💡 Read the entire case study here

Make the most of your zero-party data with Bazaarvoice

Stop relying on first-party data — or worse, third-party sources! — to personalize your e-commerce experience and marketing. With Bazaarvoice’s suite of products, you can collect, analyze, and use zero-party data confidently while keeping your customers’ data secure and compliant with privacy regulations.

  • Through Product Sampling, our community of engaged shoppers can try out your offerings, give feedback, write reviews, and make recommendations to others
  • Ratings & Reviews helps you collect authentic ratings, reviews, and product photos. Displaying these on your product pages can help convince other shoppers to purchase
  • With Questions & Answers, you can quickly answer customer inquiries with automated alerts, question routing, and Salesforce plugins. The tool also makes it easy to uncover seasonal trends, track sentiment, and monitor mobile traffic. This data allows you to adjust product page messaging and boost sales

Click each link to learn more. Or get in touch with us directly below to get started.

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Bazaarvoice response to Log4j’s security issue https://www.bazaarvoice.com/blog/bazaarvoice-response-to-log4js-security-issue/ https://www.bazaarvoice.com/blog/bazaarvoice-response-to-log4js-security-issue/#respond Wed, 15 Dec 2021 17:26:35 +0000 https://www.bazaarvoice.com/?p=21669 On December 10th, a security vulnerability was reported in a widely used logging library, Log4j, which is used by Apache web servers, and other Apache services. Details about this vulnerability can be found here and here. In short, we discovered that it’s easy for anyone to exploit, and can be launched remotely. Due to the universal nature of Log4j, this situation was classified as a critical priority for our security team. 

Within hours of reading about the vulnerability, we mobilized Bazaarvoice’s security and engineering teams to respond to the threat. First, a comprehensive assessment of all our products was performed to determine where this vulnerability may exist, and, once identified, teams swiftly applied the appropriate resolutions to address it. 

In addition to this, we leveraged several of our security partnerships to assist with its efforts. This included deployment of firewall rules to identify and block traffic associated with the vulnerability, as well as signatures used by solutions to identify activity on hosts or cloud infrastructure which could be associated with an attack. 

We’re continuing to reach out to partners who use Bazaarvoice products and services, so we can assess their response and determine if steps need to be taken to address potential risk.

At Bazaarvoice, we value the trust our clients place upon us and we work hard everyday to earn that trust. Rest assured that we will continue to closely monitor this situation and take the steps necessary to ensure the products and services we provide, and data we are entrusted with, remain well secured. 

As always, inquiries about this or any other security related matters can be directed to security@bazaarvoice.com.

Thank you — the Bazaarvoice team.

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