The Value of Zero: Accuracy and Trust

Data-driven marketing has always focused on getting as much information on your customers as possible through various channels. As privacy grows increasingly important and tracking becomes increasingly limited, zero-party data (ZPD) is on the rise.

Conventional marketing wisdom has always been that the more you know about your customer, the more effectively you can target them. For that reason, marketers have always been trying to get their hand on as much data as possible, relying not just on their own first-party data but even paying for second-party and third-party data. 

To clarify terms, here’s a rundown on the differences in data sources.
First-party data

First-party data is what a business receives directly from a customer typically as a result of purchases, subscriptions, or points of contact. It can be the result of what a customer actively fills in on a form or passively shares as a result of cookies that the customer accepts by using the brand’s site or the tracking that comes through use of an app.

While a complete record of information given by a customer is valuable, for businesses that haven’t had much time to gain a complete history, it may not suffice to inform truly tailored experiences. That’s why businesses will pay for access to additional information through second and even third parties.
Second-party data

Second-party data is first-party data acquired by another company that is then sold to a business that wants more information about its customer base. Drawing on the more thorough information can fill in more of the customer picture, but it’s still limited to what a single business has been able to gather on the customers, which is why some will pay a broker for data.


Third-party data

Third-party data is different from first and second party in that it draws on multiple sources of data that a separate company puts together into a single dataset to be sold to those in the market for that kind of customer information. Typically, the company in the business of delivering data will purchase first party data from a number of companies to create these data packages for others to buy through the data exchange marketplace.
Data drawbacks

While going from one to three increases your data resources, it’s not without its drawbacks. As anyone can buy third party data, what a business buys is not unique to it. As a result, it is very likely that all businesses competing for the same customers are working off the same data set.

Also since the establishment of GDPR in Europe and CCPA in California, marketers have had to respect consumer-set boundaries for the collection, use, and sale of their data.

The rise of such legislation has shed more light on privacy issues that has created pressure for platforms to stop enabling data collection without users’ knowledge. That is the story behind Google’s resolution to phase out third-party cookies and Apple’s new iOS setup for informed consent on apps.

The new frameworks don’t only curtail marketers from using data obtained from outside sources. They can even limit some first-party data that businesses have obtained without informed consent by tracking consumer behavior with cookies, pixels, or cross-device identification (XDID).

That is why a couple of years ago, we started hearing about zero-party data or ZPD. The term has been credited to Forrester, which presented it in Predictions 2019: B2C Marketing Report.

This approach has gained momentum over the past couple of years. AW360 predicts that a quarter of CMOs will be looking to implement ZPD in 2021.
The zero-party solution

As both zero-party data and first-party data take in information directly from the customer, there is some overlap between the two. The crucial difference between them is that zero-party data only includes what a customer knowingly and willingly shares.

That means that customers are in full control of the information they share with the business. They are willing to give their data if they feel they can trust the brand and are getting something of value in return.

Read more in  Zero to Hero: Providing Personalization & Privacy

Supply Chain Transparency to Combat Slavery: the UK's Plan

Most people would make a point of refusing to buy something known to be a product of slave labor. The problem is that sometimes consumers have no way of knowing that, particularly if the items includes a component made from by workers trafficked in and enslaved by the factory. The only way to effectively stop the sale of the products of such labor is to track all the parts used in the supply chain.

Now, the United Kingdom (UK) has set out its own guidelines, titled The Transparency in Supply Chains, etc: A Practical Guide, to help businesses to keep informed about labor sources. The guide help businesses be sure they in compliance of the Modern Slavery Act of 2015.  ...

Rather than government regulating what businesses should do, they rely on the free market forces to have a positive effect. The requirement to publicize what they do or do not do will motivate businesses to do whatever they can to reduce the market for slave labor. In the words of the guide, it would "create a race to the top by encouraging businesses to be transparent about what they are doing, thus increasing competition to drive up standards."

Read more in 

UK Plans to Use Supply Chain Transparency to Combat Slavery

Data Mining for Legislative Influence

If you want to learn about the process of getting a proposed bill passed, you can read the official explanation on a state senate site. It’s remarkably similar to the steps involved for federal legislation, according to the explanation offered to the protagonist of Mr. Smith Goes to Washington.

 What the explanations don’t reveal, however, are the entities behind the proposed legislation.

The actual authors of proposed legislation don’t sign their names, but they do leave signatures of a sort, the signals of individual style that can be found throughout their written work. All it takes is reading through thousands of proposed bills to find the textual clues that link bills to the same source. The only drawback is coming up with the time it takes for humans to read through it all. But this is one problem that technology can solve.

Read more in

Data for Good: Tracking Legislative Influence

Wooden dolls and today's supply cahin

It sounds like an oxymoron: smart wooden dolls. However, that's exactly what manufacturer Avakai has created. Though it looks like a simple wooden doll in the shape Russian nesting dolls, it is Bluetooth enabled to offer interactive response. With their stress on connectivity, transparency, sustainability, and adaptability, this company reflects the values we're seeing in today's electronic supply chain.

Read more in 

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What Wooden Dolls Can Teach Us About Today’s Supply Chain

Bringing Slavery in the Supply Chain to Light

hile human trafficking and slavery are criminal offenses, they still persist. In fact, our global economy tends to foster these crimes by keeping that labor component within the supply chain out of sight from the consumers of the final products. Now, lawmakers are betting that transparency, first on a state level, and, possibly, on a federal level, may help solve the problem.

On September 30, 2010, Governor Arnold Schwarzenegger signed the California Senate Bill 657, the California Transparency in Supply Chains Act of 2010 (S.B. 657). It requires businesses that operate in California to disclose what efforts they take to purge their supply chains of human trafficking and slavery. For the electronics industry, with its deep roots in the Silicon Valley, this is significant news, and it may be the seed of a bigger change.

Read more in

Transparency Combats Human Trafficking & Slavery in the Supply Chain