The rise of first- and zero-party data

This decade, data has become more than just a commodity — it's the cornerstone of creating meaningful customer relationships. With today's technology and customers' increased willingness to share information, collecting data is easier than ever. But this power comes with responsibility, especially regarding privacy concerns.

Here's an interesting insight: According to a recent study by Jack Morton, 48% of customers are comfortable sharing their personal data when it leads to better experiences. At the same time, they're more aware and concerned about how their information is being used. As privacy regulations like GDPR become stricter and customer expectations evolve, the way you collect and manage data matters more than ever.

Effective personalization requires reliable data inputs. But not all data is created equal. Let's break down the different types of data and their unique characteristics.

Zero-party data: The gold standard

What is zero-party data?

Zero-party data is information that customers willingly share with your company. It's not inferred or collected behind the scenes — it's explicitly provided by customers who expect better experiences in return.

What makes it special? Zero-party data is inherently privacy-first since it comes directly from users with their consent. There's no guesswork involved, and it doesn't have the "creepy factor" that sometimes comes with third-party data collection (read more about that below).

This data type is particularly valuable because it's unbiased and allows you to target customer segments with content they genuinely want, rather than making assumptions based on indirect observations.

How is zero-party data collected?

While marketers often face challenges finding established tools for gathering and managing zero-party data, several effective methods exist. Here are proven approaches for collecting this valuable information:

• Forms are an excellent starting point for collecting zero-party data because they enable marketers to choose the types of data they want to capture from customers by tailoring the fields they request.

• Chatbots are a smart evolution of forms that can engage visitors naturally while gathering valuable context about each customer profile.

• Surveys are another effective way to capture zero-party customer data and with a large enough sample size, can also provide broader insights about audiences, trends, and preferences. Surveying website visitors can create an opportunity for marketers and businesses to ask about intentions, preferences, use cases, and other details that can help shape products, marketing campaigns, and beyond.

• Self-segmentation involves asking your customers to tell you which audience segment they belong to. This straightforward approach lets customers tell you exactly which audience segment they belong to — like whether they're homeowners, renters, or property seekers.

• Quizzes make data collection engaging through interactions that both entertain customers and provide valuable insights for personalization.

First-party data: Your direct connection

What is first-party data?

First-party data is like having a direct line to your customers — it's information you collect yourself through your own channels and sources. Think of it in two categories:

Customer data: The basics about your customers, like demographic details or what they've purchased. User data: The digital footprints people leave when interacting with your website content, app, or other platforms — their browsing habits, content preferences, and behavioral patterns

Here's an interesting insight: According to Segment's research, 78% of businesses consider first-party data their most valuable resource for personalization. And it makes sense — this data comes straight from your customers' interactions with your business, making it both reliable and relevant.

However, it's worth noting that privacy considerations still apply. While first-party data is valuable, companies need to be transparent about collection practices and follow regulations like GDPR and CCPA regarding customer consent.

How is first-party data collected?

The key to collecting first-party data is adding a pixel to your digital properties — think of it as a smart observer that ethically tracks and records user interactions. This could include:

• Website visits and clicks

• Product views

• Social media engagement

• Survey responses

Second-party data: Building strategic partnerships

What is second-party data?

Think of second-party data as borrowed insights — it's essentially using someone else's first-party data through a direct partnership. This approach is different from buying third-party data because you're working directly with trusted partners to share audience insights that benefit both businesses. Since second-party data is essential first-party data received from another company, it’s crucial that the data is stored securely and in compliance with data privacy regulations.

The beauty of second-party data lies in its transparency. You know exactly where it came from and how it was collected, making it more reliable than third-party alternatives. Plus, you can develop flexible arrangements that work for both parties involved. 

How is second-party data collected?

The path to second-party data is through partnerships. The most effective approach is finding organizations with complementary interests and audiences. For example, a pet food company might partner with a veterinary clinic chain — both serve pet owners but in different ways.

Third-party data: The shifting landscape

What is third-party data?

Third-party data is aggregated information collected from various sources, packaged together, and sold. While it can provide broad market insights, it's facing increasing scrutiny in today's privacy-conscious world.

The landscape for third-party data is changing dramatically. With Apple blocking third-party cookies, Google phasing them out in Chrome, and the rise in ad-blocker usage, its effectiveness has diminished. Add in concerns about data accuracy and privacy, and you can see why businesses are pivoting toward first- and zero-party data strategies.

How is third-party data collected?

Third-party data collection happens through a variety of channels:

• Independent research and surveys

• Third-party cookie tracking

• Feedback forms

• Data aggregation from multiple sources

The key difference? Unlike first- and second-party data, third-party research often uses random sampling. While this increases the volume of data, it may not always be accurate or align with your specific business needs or customer base.

The rise of zero-party data: A new era of customer trust

Another fascinating shift in the data landscape is customers becoming increasingly savvy about their personal information. They're more aware than ever of privacy concerns, and they're particularly wary of third-party data practices where they don't have control over how their information is used.

This creates what I like to call a "perfect opportunity" for marketers to leverage zero-party data in ways that benefit everyone involved. Here's what makes this approach so powerful:

Customers actually want to share information — when it's on their terms. They're looking for personalized experiences that feel tailored to their needs, but they want to choose what information they share and only connect with brands they trust.

Think about it this way: zero-party data eliminates that "creepy factor" that customers often experience when interacting with companies using third-party data. You know that unsettling feeling when an ad seems to know too much about you? That's exactly what we're avoiding here.

Turning zero- and first-party data into better experiences

Companies in the publishing, automotive, retail, and events industries are already leading by example:

The New York Times

The NYT implemented a registration wall (content locked behind a form that allows visitors to exchange their email address for access to a set volume of free content). This tactic was one of the two "key drivers" that helped grow digital advertising revenue by $100m over 5 years. It also led to significant growth in its digital subscription business, as the company discovered that registered users converted at 40x the rate of anonymous users.

Kia

Kia and its sister brand, Hyundai, recently shifted to a more customer-centric approach that revolves around first-party data. It partnered with regional car dealers to build standardized web templates that provide a more consistent customer experience and created an avenue to collect data on potential customers. It also began building first-party data collection into existing channels and websites, like when visitors request information on new cars or want to “build their own Kia.” The approach provided Kia with deeper insights on potential customers and allowed it to use CRM data for paid media marketing campaigns. The results were impressive:

• 4x higher conversion rate

• 268% increase in CTR

• 55% new-user engagement compared to benchmarks

More examples

Tesco and FT Live are two other companies leveraging first-party data to deepen customer retention, increase average consumer spend, and drive more conversions. These examples pave the way for other companies to improve their customer experiences without overstepping privacy-conscious visitors’ boundaries.

Looking forward

So how do we put this knowledge into action?

Ninetailed is a prime example of how first-party behavioral data can enhance the customer experience without being invasive. It analyzes browsing patterns and serves relevant content based on actual user intent — no guesswork required.

But here's where it gets really interesting: Companies with direct customer relationships (think banks or telecom providers) can take this even further. They can use first-party data from their CRMs and CDPs — mobile banking, call center interactions, or service usage patterns — to create truly personalized experiences that feel natural and helpful rather than intrusive.

Zero-party data goes a step further. When customers explicitly tell you their preferences, you're working with the most accurate data possible. It's like having a direct conversation with each customer about what they want.

Future-proofing your data strategy

Capturing customer motivations, intentions, and preferences isn't just about collecting data — it's about building relationships. But how you do it matters enormously.

While third-party data has been the go-to solution for many years, we're witnessing a significant pivot toward first-party and zero-party data strategies. These types of data are extremely valuable, offering companies the ability to gain deeper knowledge of their market while creating opportunities to better serve them at every step of the customer journey.

Ninetailed by Contentful simplifies the use of first- and zero-party data. Get in touch with sales to learn more about how Ninetailed and Contentful can help you implement a zero-party data personalization strategy and create future-proof customer experiences.

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