When developing a data roadmap, start by identifying business outcomes and consider the data required to evaluate success for each—what analyses will be conducted, what data is needed, where will the data come from, how will it be collected, and what are the measures of success? A simplified data roadmap meant to highlight the zero-party data collected through user-submitted preferences in-app could be as simple as:

• Business objective: Increase engagement through improved user value.
• Data usage goal: Enhance user experience through personalized recommendations.
• Methods for data analysis: Segmentation analysis, machine learning algorithms
• Data sources: Mobile app analytics, customer profiles
• Data collection: In-app preference center, in-app events (SDK)
• Data needed: Zero-party (customer preferences, e.g., dietary restrictions), first-party (behaviors, e.g., search queries)
• KPIs: Daily active users, session duration, session frequency, retention rate

From the consumer perspective, transparency around the intended use of collected data is paramount to building loyalty. Trust will erode quickly if consented data is used for other purposes without their knowledge and permission.

Trusting your consumer and knowing when to let go

We often use the analogy that poor data collection practices and data misuse are akin to breaking up with someone who refuses to leave your doorstep. No matter how many times you say you aren’t interested, the person refuses to accept that it is over. Companies need to think about their data practices as relationships with their consumers. And no one wants a bad relationship! 

Zero-party data is the most accurate data you’ll collect, as long as consumers are motivated to trust and respect you as well. Create a fair and balanced value exchange, communicate what you’re collecting and how you’ll use the data, and make it abundantly clear (and easy) for customers to make changes or opt out at any time.

Zero-party data has a bright future; it’s a lucrative path for the businesses that want to put in the time and effort needed to get it right. Failure to proceed with diligence comes with a warning, however—58% of consumers surveyed said they are willing to stop doing business with a company that has a bad reputation around data.

The future is promising for companies that understand the importance of data privacy and ethical data use through transparency and choice.