Zero-Party, First-Party & Third-Party Data Explained

Data is an important asset for any business, enabling companies to better understand their customers and create more tailored experiences. With so much data at our fingertips, it is worth taking the time to look at the key differences between zero-party, first-party and third-party data.

What is Zero-Party Data?

Zero-party data is the highest quality of customer data – opt-in data that customers give directly to brands via surveys, forms, or other strategies. This data allows companies to get a deeper understanding of their customers’ interests, preferences, and behaviours.

What is First-Party Data?

First-party data is data that a company collects directly from customers. It’s normally data from interactions such as when a customer visits a website, makes a purchase, or engages with the company in any other way. This data can be used to gain valuable insights into customers’ behaviour, helping companies to assess their own data sets and make better decisions.

What is Third-Party Data?

Third-party data is data collected by an external source, such as media outlets, research organizations, or other brands. It can provide valuable insights into your customer base, as it gives companies insights into behaviour they wouldn’t normally be able to measure.

The Difference between Zero-Party, First-Party & Third-Party Data

It is important to appreciate the differences between these three types of data in order to best utilize them for the benefit of your business.

Zero-Party Data:

  • Opt-in data that customers provide directly to brands

  • Highest quality of customer data
  • Gives deeper insights

First-Party Data:

  • Data that companies collect directly from customers
  • From interactions such as website visits, purchases, etc.
  • Can help assess own data sets & make decisions

Third-Party Data:

  • Collected by external source such as media outlets, research organisations, or other brands
  • Insights into customer behaviour
  • Cannot measure normally

By understanding how zero-party, first-party and third-party data varies, companies can ensure that they are making the most of their customer data. By proactively collecting the right types of data in the correct way, organisations can propel their insights to a whole new level.