What’s the Difference Between First Party Data and Second Party Data?

Zero-party data and first-party data are two types of data that businesses can collect about their customers. They are both valuable, and each have different strengths and weaknesses.

Zero-party data is data that customers intentionally and proactively share with the web platform. This can include things like purchase intentions, personal context, and how they want the product, service or brand to recognize them. Zero-party data is the most valuable type of data because it is the most accurate and reliable. It is also the most privacy-friendly because customers are giving it to you willingly.

First-party data is data that businesses collect about their customers through their own channels, such as their website, app, or email list. This can include things like purchase history, website behavior, and email engagement. First-party data is less valuable than zero-party data, but it is still valuable because it can be used to create personalized experiences for customers.

The best way to collect zero-party data is to ask for information in exchange for something of value to the customer. This could be through a survey, customized product recommendations, or a free resource such as an eBook.

The best way to collect first-party data is to use tools like website analytics, email marketing, and CRM software.

Both zero-party data and first-party data are important for businesses. Zero-party data is the most valuable, but first-party data is more abundant. By collecting both types of data, businesses can create a more complete picture of their customers and deliver more personalized experiences.

Here is a table that summarizes the key differences between zero-party data and first-party data:

CharacteristicZero-party dataFirst-party dataOriginCustomerBusinessCollection methodVoluntaryImplicitAccuracyHighMediumPrivacyFriendlyLess friendlyValueHighMediumUse casesPersonalization, targeting, segmentationPersonalization, targeting, segmentation, customer insights

Here are some examples of zero-party data:

• Customer surveys

• Product reviews

• Contact information

• Purchase intentions

• Personal preferences

• Feedback

Here are some examples of first-party data:

• Website traffic data

• Email open rates

• Click-through rates

• Purchase history

• Social media engagement

• Customer support interactions