Zero-Party vs First-Party Data: Differences Simply Explained

Ecommerce brands face a hard reality. 

Acquiring traffic is more expensive than ever, yet 97% of shoppers leave a site without buying. 

Visitors often need 6 to 8 interactions before they commit to a purchase. When brands rely on third-party cookies to track these journeys, they build their houses on rented land. As privacy regulations tighten and cookies disappear, merchants must find a better way to understand their customers.

That’s where zero-party data and first-party data come in.

While these terms are often used interchangeably, they are technically not the same. Let’s see the differences!

Zero-Party Data vs First-Party Data

In short: 

• Zero-Party Data → Information Deliberately Shared by the user
• First-Party Data → Behavioral Signals Collected by the brand
• (Third Party Data →  Information collected by an external entity)

Zero-Party Data

Zero-party data is information a shopper intentionally shares with a brand. It is collected with explicit consent and stored for the customer's benefit. This data is the most accurate reflection of what a customer wants. Examples include:

• Items saved to a wishlist.
• Requests for back-in-stock alerts.
• Preference center selections or survey responses.
• Gift registries for specific life events.

First-Party Data

First-party data consists of behavioral signals a brand collects from its own channels. Unlike zero-party data, the shopper doesn't have to fill out a form or click a specific heart icon to generate it. It is observed rather than stated. Examples include:

• Product pages viewed multiple times.
• Add-to-cart events.
• List interactions and browsing history.
• In-store purchase history.

Third-Party Data Limitations

Using third-party data is risky and challenging due to strict regulations. 

However, the biggest pitfall of third-party data is shopper friction. Shopper friction happens when a shopper's context is lost between visits or devices.

Imagine this: 

A customer finds a product on a mobile device from an ad during a commute but cannot find it later on their desktop to finish the purchase.

This wouldn’t happen with zero and first-party data as brands become the sole owner of the information and they can make sure all data is well connected and fed into their systems. 

When to use Zero-Party and First-Party Data

Now that you know exactly what Zero-party and First Party data are and what’s the benefit against third party data, you may be wondering: when to use what?

To answer that question, we need to take a step back.

Capturing data is only the first half of the equation. The real value lies in activating that data. So ask yourself: what data you want to collect and what are you going to use it for?

Utilizing Zero-Party Data

Because zero-party data represents explicit interest, it drives some of the highest-converting marketing messages in ecommerce. 

• Back-in-Stock Alerts: When a shopper asks to be notified about an out-of-stock item, they are signalling high purchase intent. That’d be an example of a marketing campaign powered by Zero-party data.
• Similarly, we also have Price Drop Alerts, that is notifying a shopper when an item on their wishlist goes on sale to create immediate urgency.
• Or a Low Stock Alerts, informing a customer that a favorite item is running low, which taps into FOMO (Fear of Missing Out) and encourages a faster finish.

Using First-Party Data 

Now first-party data allows for subtler gentle nudges that keep a brand top-of-mind. Here’re two examples:

• Smart Save: Advanced tools can automatically add items to a wishlist after a certain number of product views, ensuring high-intent products are remembered even if the shopper forgets to click save.
• Save for Later from Cart: 7 out of 10 items added to a cart are removed. By offering a Save for Later option, brands can keep shoppers in the funnel rather than forcing a "buy now or lose it" decision. 

Capture and Activate Zero-party and First-party Data with Swym

The message is clear: data equals power. 

Whether a shopper is on a mobile app or visiting a physical boutique, their context should follow them.

Swym helps you capture zero and first-party data and act on it, empowering brands to take control of their marketing and sales strategies.