Zero and first-party data explained

Zero-party and first-party data both come straight from your customers, but the key difference between first-party and zero-party data is how you get them. Zero-party data is willingly shared – like quiz answers or preferences. First-party data is collected through user behavior – like clicks, views, or purchases.

By definition, zero-party data is the information customers share with the business willingly. It’s the information your customers are happy to provide in exchange for something you offer, like a better experience, discount, tailored offer, brand loyalty program membership, early launch access, etc.

At the same time, zero-party data is the hardest to obtain, as it requires direct input from the customer. To collect such data, you must offer the client something worthwhile.

Zero-party data, arguably the most valuable data from your clients, is gathered through direct contact with a customer. It is highly accurate, reliable, individual, and collected ethically (with the customer’s explicit consent). 

First-party data is information you collect about your customers from your channels to learn how a customer interacts with your business. It’s all the information you can gather from your encounters with your clients using your tools.

The critical difference between zero-party and first-party data is that with zero-party data, customers have to input data and expect something in return. First-party data is information you gather based on customers' interactions with your brand. 

First-party and zero-party data were grouped for a long time because they come directly from a business's interactions with its customers. If, at some point, due to browser restrictions and data regulations, more and more marketers turn to cookieless tracking as an alternative to traditional methods. It’s vital to distinguish between the types of data you collect and know how to work with each one.

While the future of third-party data remains uncertain, zero-party data stands strong. When marketers debate first-party vs zero-party data, zero-party data often comes out as the most valuable data asset a business can possess. It empowers companies to enhance the quality of their marketing efforts and tailor them to the unique needs and preferences of their customers. Zero-party data is not just crucial for building strong, loyal customer relationships; it is the most valuable asset for personalization.

First-party data must be more prominent in the face of the shift from the dominating role of third-party cookies. Any business can gather and manage this data type, making it a reliable and adaptable resource for the future. 

This data allows you to enhance personalization and maintain and nurture customer connections. You can also refine targeting (by utilizing customer behavior and purchase history data).  Thankfully, first-party cookies are not going away like the third-party ones might, at least not in the foreseeable future.

When you look at zero-party data vs first-party data side by side, the question comes down to one thing – did the customer hand you this information directly, or did you collect it by observing their behavior?

When you compare zero-party vs first-party data side by side, it becomes clear that neither one is "better" – they simply tell you different things. Zero-party data shows you what customers say they want, while first-party data shows you what they actually do. Used together, zero- vs first-party data isn't really a competition, and combining the two gives you a far more complete picture of your audience than either one alone.

Using server-side tracking to manage zero- and first-party data comes with a lot of benefits. First, server-side tracking is reliable, since you control the data transmission and management yourself. It also helps you provide better data protection, and it can support privacy-compliant advertising. Whichever side of the first-party data vs zero-party data discussion you focus on, server-side tracking helps you handle both more securely.

Server-side tagging allows you to send first- and zero-party data from your CSM, CRM, or database to the Google Tag Manager server. Then, you can deliver the data from sGTM to advertising and analytics platforms such as Facebook, Google, TikTok, etc. It can help you collect more information about your customers' events even without them visiting your website. 

Offline conversions help improve the attribution and performance of advertising campaigns. They occur when a customer, after interacting with your online ads, takes action offline, such as calling your call center or visiting your physical store. By linking these offline actions to your online campaigns, you can better understand the impact of your digital advertising efforts and optimize them for better results.

We have a guide on how to send data from your CMS, CRM, or any third-party platform directly to sGTM. Once the data reaches sGTM, you can easily configure it to be sent to any other destination or service, giving you full control over your tracking and data flow.

You can also store zero- and first-party data on the server and enrich your web events. For example, if a user creates an account on your website or makes a purchase, you can use the stape store to enrich pageview events for them. Alternatively, for those who visit your website from the ad and then convert offline, you can enrich purchase events with necessary cookies (for example, fbp and fbc for meta) before sending the purchase event to meta.

Building a custom CDP (Customer Data Platform), a system that collects and manages customer data from various sources, and enriching event data using server-side GTM allows you to combine all your customer information in one place, making it easier to understand and reach out to them more effectively.

Overall, server-side tracking is the most reliable and viable way to capture and handle customer data in a cookieless way, if the deprecation of third-party cookies happens at some point eventually. 

You should collect first-party data because it’s vital for understanding how customers interact with your business. Unlike third-party data, which is unreliable and sometimes compromised in accuracy, first-party data is accurate, reliable, and is always there for your business to use. 

Remember that effectively collecting and managing first-party data means being transparent. Let your customers know what data you collect, why you want it, and how you protect it. This will also help you get your customers on board by ensuring their information is safe with you and used only in their best interest. 

Prove that you can use customer data to improve the shopping experience and provide better service overall. Show your customers that it’s worth trusting their data with you.

Naturally, any business attempts to use customer data whenever and wherever it comes from. Finding the correct ratio for collecting and using zero, first, second, and third-party data is essential for the company's well-being in the changing marketing and advertising era. 

As businesses work on mastering user tracking without cookies, it becomes clear that relying on zero- and first-party data is the right approach. Zero-party data vs first-party data debate matters less than how well you combine the two, and using server-side tracking is one of the simplest ways to make the most of both while coping with the deprecation of third-party cookies.

Don’t hesitate to contact Stape support. We will answer your questions and resolve any issues you might be experiencing as quickly as possible.