If you're a marketer, you're probably familiar with the term zero-side data. There is a lot of debate about what it is and how marketers can use it to attract, convert and retain customers. But everyone agrees that marketers need to understand how to collect valuable personal information from consumers in a way that doesn't raise privacy concerns or require the use of third-party cookies.
In fact, consumer concerns about privacy continue unabated. According to a recent survey by Prosper Insights & Analytics, two-thirds of consumers surveyed want laws that prevent social media, search engines, and mobile apps from selling their personal, online, and mobile location data to advertisers and others. This is my recent discussion on page zero data and personalization with Jake Weatherly, CEO of SheerID, a company that helps brands use page zero data to personalize their marketing strategy in a way that respects consumer privacy.
Gary Drenik: Can you give me an overview of what SheerID does? Why do you think product discounts are the new frontier of personalization?
Jake Weatherly: Let me start with a question every marketer asks: How do I engage consumers in a world where they average 5,000 messages a day? Consumers are being bombarded with messages more than ever. For example, according to a recent survey by Prosper Insights & Analytics, nearly half of us regularly watch TV online. The best way to engage consumers in such a noisy environment is through personalization, addressing the specific wants and needs of each individual.
But before you can do that, you need to understand who these people are. The questions to ask and answer are related to identity. We help brands embrace this new reality by verifying the identities of their customers. Everyone wants to activate the offer available to them. Members of specific communities, such as students, teachers, nurses, or the military, are key to the success of the next generation of marketers and brand leaders.
Brands like ASICS, Target and Spotify use our software platform to validate data that consumers voluntarily provide about themselves to qualify for an offer, such as: For example, the school they attend or the union they belong to. Inviting consumers to voluntarily provide data about themselves, in this case for an attractive discount, means that brands attract new customers and gain recognition in sought-after consumer communities.
Drenik: It all makes sense. But can you give an example of a company that puts this approach into practice?
Weatherly: Sean Condon, who oversees direct marketing for ASICS, like many other marketers, found that data restrictions make it difficult to collect consumer information.
Sean and his team found that consumers are willing to share personal information about themselves when the brand is completely transparent about how that data is used to deliver valuable experiences in return.
The ASICS OneASICS loyalty program has been very successful due to the offers the company makes to certain communities of consumers based on people's self-identification: their membership in certain groups, such as first responders and the military. In just 25 days, the ASICS loyalty program generated 26,000 purchases, which represents 15% of the total sales for the month. SheerID digitally verifies these consumers so shoppers can easily identify themselves as members of the target community and redeem their discount. This verified data enables ASICS to further personalize experiences, build trust and attract new customers.
Drenik: It goes without saying that retailers will be at the forefront of zero-side data. But do you also see opportunities for companies in other sectors?
Weatherly: We work with many subscription service providers. For example, Comcast has recognized that it is lagging behind its competitors in its efforts to connect with a new generation of customers.
Part of Comcast's success is due to partnerships with HBO and Amazon Music to give Gen Z the streaming media they crave. But it wasn't just what Comcast started, it was how they started offering it.
To appeal to budget-conscious Gen-Zers, Comcast offered students a discount on a package that included high-speed Internet and content from HBO and Amazon Music. Students simply visited the Comcast home page and entered basic information like their email address and the college they attended. SheerID immediately verified their eligibility and the students were logged in without leaving the Comcast website.
The offer was so popular that subscriptions increased sixfold compared to the previous year. Plus, Comcast now has new customers and proven data to add to its ever-changing marketing mix.
Drenik: I understand that consumers like to provide their data in order to receive discounts on their customers' products or services. Are there ways brands can leverage this data from the ground up as part of their ongoing marketing efforts?
Again: Absolutely. Imagine for a moment a home improvement brand that offers discounts to military personnel through campaigns like the one Comcast offers to students.
After a service representative provides information about themselves to qualify for an offer, the brand adds that information to their customer file. A few months later, the brand could send you an email thanking you for your service by offering you a free product that can only be used in the store. Once you go to the store to pick up the free product, your range is likely to be higher.
Third-party data operations can also increase brand value and awareness. A brand can use the granular details that are disappearing from the open web due to changes in privacy to drive creativity that resonates with loyal customers.
Drenik: Change gear. From what I understand, earlier this year you commissioned a survey from Forrester Consulting that examined the opportunities and challenges marketers face when using null data. What was the biggest surprise/withdrawal for you?
Weatherly: According to a study, 90% of surveyed marketers say their companies will collect third-party data within 12 months, and 85% said third-party data is critical to creating effective personalized experiences. While nearly as many respondents said they had access to zero-type data (82%), 42% admitted they didn't know how to use it effectively.
There are so many unknowns with page zero data, including how to hold consumers accountable for their information, how to know if the data provided is accurate, and how and when to use that sensitive information. Vendors in our area can help you with this. In addition to what we do at SheerID, there are providers that offer many opportunities to encourage consumers to provide their information with confidence and security. For example, there are a number of companies that make it easy for brands to understand specific interests or capture unique preferences on their websites.
In general, all successful marketers ask themselves, "What motivates consumers to share their data with me?" With exciting, valuable and real incentives, winning brands continue to put themselves in a strong position to collect and leverage valuable data from scratch. , to engage with consumers in the most important and valuable way: personalization.
Drenik: Thanks Jake for your insights on how marketers need to rethink personalization and discounting to attract and retain customers. In today's economy, this is more important than ever.