7 Creative Ways to Use Zero-Party Data By collecting zero-party data, companies can get a better understanding of their customers without violating their privacy. Here are seven creative ways to use it.

By Vlad Gozman

Opinions expressed by Entrepreneur contributors are their own.

Big data is big business. And for good reason: It helps companies better understand and target their audiences, resulting in more efficient marketing and improved customer retention rates. But there's a big problem with big data: It's often collected without the user's knowledge or consent. This "creepy line" of data collection has led to increased public outcry over how companies are using our personal data. From Brave to DuckDuckGo to AdBlock Plus, we're seeing a growing movement of people and companies fighting back against the intrusive data practices of the online world.

But what if there was a way for companies to collect data without crossing that creepy line? What if they could collect data that was voluntarily and explicitly provided by users? That's where zero-party data comes in. Zero-party data is information that is intentionally and actively shared by users with a company. This could be something as simple as a quiz, survey or poll that a user completes on a company's website. No-code content builders make it easy for businesses to create interactive content that collects zero-party data.

By collecting zero-party data, companies can get a better understanding of their customers without violating their privacy. And because the data is voluntarily shared, it can be used more effectively for marketing and other purposes. Here are seven creative ways to use zero-party data:

Related: Why Zero-Party Data is the New Secret Weapon for Brands

1. Create a customer profile

One of the best ways to use zero-party data is to create a detailed customer profile. This profile can include information like demographics, interests, values and preferences. By understanding your customers at this level, you can better target your marketing efforts and improve the overall customer experience.

You've likely seen, and even participated in, quizzes that collect this type of data. For instance, a "style quiz" that asks about your fashion preferences or a "food quiz" that asks about your dietary restrictions. Even a B2B company can use interactive content to collect data about their target market, such as a poll that asks about recruiting trends or a survey that gathers data about the customer buying process.

2. Improve customer service

Another great way to use zero-party data is to improve customer service. This data can be used to resolve support tickets faster, route customers to the right department and even proactively reach out to customers with issues.

For example, let's say you have a customer who regularly contacts support with questions about their account. By understanding their needs and preferences through zero-party data, you can provide them with more personalized support, which can help reduce the number of support tickets they submit.

Related: You Can Collect Customer Data and Deliver a Better Experience Without Violating Privacy

3. Make product recommendations

You can also use zero-party data to make product recommendations. This is especially useful for ecommerce companies, but any type of company can use this data to suggest products or services that might be a good fit for the customer.

For instance, let's say you have a customer who takes a quiz about their travel preferences. Based on their answers, you could recommend travel-related products, such as luggage, travel insurance or even a trip to a specific destination.

4. Create customized products

Another great way to use zero-party data is to create customized products. This could be something as simple as a pair of glasses that are specifically tailored to the customer's face shape or a piece of clothing that's made to the customer's measurements.

By understanding the customer's needs and preferences, you can create a product that's truly customized for them. This not only provides a better customer experience but can also lead to increased sales and loyalty.

5. Improved ad targeting

Zero-party data can also be used to improve ad targeting. This data can be used to better understand the customer's needs and interests, allowing you to create ads that are more relevant to them.

For example, let's say you have a customer who takes a quiz about their favorite type of food. You could use this data to target them with ads for restaurants that serve their favorite type of food.

Related: 3 Tips for Using Consumer Data to Create More Personalized Experiences

6. Increase engagement

Zero-party data can also be used to increase engagement with your brand. This data can be used to create more personalized content, such as blog posts or social media posts, that are tailored to the customer's interests.

You can also use this data to segment your customers and create different engagement strategies for each group. For example, you could create a loyalty program for your most engaged customers or offer discounts to customers who haven't interacted with your brand in a while.

7. Make better business decisions

Finally, you can use zero-party data to make better business decisions. This data can be used to assess the effectiveness of your marketing campaigns, understand which products are selling well and even predict future trends.

Zero-party data is a powerful tool that can be used to improve the customer experience and create more personalized content. By collecting and using this data, companies can provide better service, make more informed decisions and create more customized products.

Vlad Gozman

Entrepreneur Leadership Network® Contributor

CEO of involve.me

Serial entrepreneur, co-founder of marketing data analytics platform Adverity and founder of no-code funnel builder involve.me.

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