Third-party data is losing its footing as privacy laws tighten and shoppers grow more skeptical of how their data is used. At the same time, they still want personalized experiences that reflect their unique needs and preferences. 

This creates a pressing challenge: how can brands personalize the shopper journey without relying on intrusive collection methods? The answer is ethical, owned data, specifically zero-party data and first-party data.

In this post, we’ll explain the different types of customer data and explore why zero- and first-party data are essential to modern ecommerce marketing. You will also learn how to collect and activate these insights to create more personalized experiences that drive repeat purchases and long-term customer loyalty.

What is Zero-Party Data?

Zero-party data is information a shopper intentionally shares with a brand, such as preferences, purchase intentions, or information about how an individual wants to be recognized. It differs from first-, second-, and third-party data because the shopper controls what they share and why.

Here’s how zero-party data compares to other main types of customer data:

• Zero-Party Data: Shared intentionally through quizzes, preference centers, surveys, or account setup. This data reveals what shoppers want you to know about their preferences, goals, and motivations.
• First-Party Data: Collected through direct interactions, such as browsing history, purchase behavior, or engagement with email and SMS campaigns. This data is the behavioral layer that complements zero-party insights.
• Second-Party Data: First-party data shared between two companies for a specific purpose, such as co-marketing. This data limits a brand’s control over how the data is collected or maintained.
• Third-Party Data: Purchased or aggregated from external sources without a direct relationship between the brand and the shopper. 

Why Is Zero-Party Data Important for Ecommerce Marketing?

Zero-party data is becoming essential in ecommerce because it supports privacy compliance, meets shopper expectations for transparency, and enables more accurate personalization than purchased data. Brands using zero-party and first-party data can build trust, improve conversions, and deliver meaningful customer experiences that lead to long-term loyalty.

The future of ecommerce marketing isn’t about collecting more data. It’s about collecting the right kind of data. Owned data sources like zero- and first-party data are transparent, compliant, and grounded in genuine customer relationships.

Here are three reasons why owned data is becoming indispensable:

1. Privacy-First World

Privacy regulations such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and other state-level consumer protection laws give shoppers more control over what data is collected and how it’s used. As these rules continue to evolve, zero- and first-party data provide a reliable way for brands to stay compliant while also future-proofing their personalization strategies.

2. Shopper Expectations

Shoppers want authentic experiences shaped by information they’ve chosen to share. Zero- and first-party data make this possible by enabling brands to personalize in ways that feel helpful rather than invasive. This level of transparency builds trust and lays the foundation for long-term customer loyalty.

3. Performance Advantage

Zero- and first-party data come straight from the source (the shopper), making them more accurate, current, and actionable than anything purchased from third parties. Since this data reflects real preferences and behaviors, brands can create more precise audience segments, improve message relevance, and increase conversion rates over time. The result is smarter marketing that drives measurable performance without compromising privacy or trust.

How Can Brands Collect Zero- and First-Party Data?

Brands can collect zero-party data through interactive experiences like quizzes, surveys, and preference centers, while first-party data is gathered from observed behaviors such as browsing activity and purchase history. Together, these data types form the foundation for meaningful personalization across the shopper journey.

Collecting data should feel like a value exchange, not a transaction. Shoppers are more likely to share information when it enhances their experience, so focus on creating moments that feel natural, relevant, and rewarding. 

Zero-Party Data Collection Methods

• Quizzes: Help shoppers find the right product or service while gathering insights about their needs and goals.
• Surveys and questionnaires: Ask questions like “What are you shopping for today?” to uncover intent in real time.
• Polls: Quickly capture opinions to guide product development, such as “Which new color would you like to see next?”
• Forms: Go beyond name and email by adding optional fields like budget range or shopping frequency to personalize experiences.
• Preference centers: Allow shoppers to manage their communication preferences to reduce fatigue and increase engagement.
• Account setup: Ask shoppers what types of products or content they’re most interested in, such as new arrivals, sales alerts, or style tips.
• Interactive tools and calculators: Offer value-driven tools like size finders or savings calculators that double as data collection opportunities.
• Personalized offers: Let shoppers choose their preferred incentive, such as free shipping or a discount, to reveal what motivates them.
• Contests and giveaways: Offer a discount or access to exclusive content in exchange for sharing their information.
• Loyalty profiles: Invite shoppers to share their preferred rewards, set their birthday, and create wishlists.
• Post-purchase feedback: After a purchase, ask shoppers to rate their experience and share feedback to improve future touchpoints.

First-Party Data Collection Methods

• On-site behavioral tracking: Analyze pages viewed, time spent, and cart activity to understand purchase intent and product interest. 
• Referral source tracking: Identify whether a shopper arrived via organic search, email, social media, or affiliate links to understand which channels drive high-value traffic.
• Email and SMS engagement: Measure open rates, click patterns, and engagement times to optimize campaigns for individual preferences. 
• Purchase history: Use order frequency, average order value, and purchase patterns to identify cross-sell opportunities. 
• Subscription and reorder patterns: Monitor sign-ups, cancellations, and reorder intervals to predict churn and improve retention tactics.
• A/B testing: Identify which designs, CTAs, or offers resonate best with different audience segments to refine personalization. 
• Customer support chats: Review feedback to identify recurring themes around satisfaction, pain points, or unmet needs. 
• Loyalty program interactions: Track participation, redemption behavior, and preferred rewards to understand what motivates repeat purchases.

How Do Zero- and First-Party Data Work Together?

Zero- and first-party data complement each other by combining explicit shopper preferences with observed behavior. Together, they enable more accurate, predictive personalization. For example, pairing quiz responses with browsing history allows brands to deliver product recommendations that truly match a shopper’s interests.

How to Create a Zero-Party Data Strategy that Builds Trust

1. Define the Data That Actually Matters

Collect insights that lead to better personalization, not just more data. Ask intent-based questions such as “What’s your top shopping priority: price, quality, or speed?” These answers reveal motivations that can shape product recommendations and messaging.

2. Create Mutually Beneficial Experiences

Be transparent about why you’re collecting information and give shoppers something in return, such as personalized recommendations, loyalty perks, or early access. Context matters: “Help us tailor your experience” feels far more inviting than “Share your details.”

3. Create Seamless Collection Points

Integrate data capture naturally into the shopper journey to maintain relevance. For example, ask “Can we help you find your size?” if a shopper attempts to abandon a product page. The goal is to collect data when it adds value, not friction.

4. Activate and Integrate Data Across Channels

Combine declared preferences with behavioral insights to create smarter segments. Then apply those insights across on-site campaigns, email, and SMS. For shoppers who browse anonymously, solutions like Upsellit’s Anonymous Visitor ID make it possible to unify their journey and deliver consistent personalization across channels.

5. Measure, Test, and Evolve

Use ongoing testing and analysis to improve your strategy over time. Track metrics such as engagement, conversions, opt-in rates, and repeat purchases to see which questions, incentives, or touchpoints drive the most valuable results. Continuously optimize your approach to ensure every interaction adds relevance and builds trust.

Ways to Use Customer Data for Personalization

Collecting data is only the first step. The real value comes from how you use it. Here are a few effective ways to turn shopper insights into action:

• Guided product recommendations: Use quiz responses or preference selections to recommend the right products or bundles.
• Interest-based offers: Ask shoppers what product categories interest them most, then trigger personalized messages or promotions when those categories go on sale.
• Communication preferences: Deliver messages through each shopper’s preferred channel to increase engagement and reduce fatigue.
• Low-stock reminders: Send automated alerts when items a shopper viewed or added to their cart are almost out of stock to create urgency and encourage return visits.
• Replenishment reminders: Use purchase history to predict when shoppers may need to restock and send timely reminders before they run out.

These examples show how combining declared preferences with observed behavior enables brands to deliver more relevant, timely personalization across the shopper journey.

From Personalization to Loyalty: Building Long-Term Customer Relationships

Personalization is the first step in building relationships that last, but the ultimate goal is loyalty. Owned data gives brands the insight needed to move beyond transactional experiences and create genuine emotional connections that keep shoppers coming back.

Together, zero- and first-party data power:

Personalized experiences that build emotional connections: When shoppers see that a brand remembers their preferences and communicates thoughtfully, they begin to trust that the experience is designed for them, not just their wallet. That trust turns routine purchases into lasting relationships.

Loyalty programs tailored to individual motivations: Using owned data, brands can design loyalty programs that reflect what each shopper values most, whether it’s exclusive access, meaningful rewards, or early product launches. Personalization within these programs transforms loyalty from a points system into an ongoing conversation.

Continuous learning opportunities: Every interaction offers a new chance to learn. The more a brand listens and adapts based on shopper feedback and behavior, the more relevant and rewarding each experience becomes. Over time, this cycle of personalization and optimization strengthens retention and advocacy.

When shoppers feel seen and understood, they don’t just buy once. They buy again and again.

Data Ownership Is the New Customer Loyalty Strategy

Third-party data is disappearing, and the future of ecommerce belongs to brands that earn, not buy, shopper trust. By focusing on zero-party data and first-party data, retailers can create compliant, transparent personalization strategies that build stronger relationships and lasting customer loyalty.

Upsellit helps brands collect and activate owned data across the shopper journey to deliver personalized experiences that drive engagement and long-term growth. Download our Engagement Trigger Playbook to learn how to turn shopper insights into real-time triggers that convert browsers into buyers.