Zero-party data: How retailers personalize without cookies

The use of third-party data will continue to be subject to strict legal restrictions in 2025. The GDPR imposes high data protection requirements, such as explicit consent, complete transparency, and an obligation to delete data. Google's recent announcement that it will continue to support third-party cookies, contrary to previous announcements, is causing particular uncertainty. Zero-party data as an alternative represents a significant strategic opportunity for online retailers and brands.

Zero-party data is information that users consciously and actively share with a company. Unlike first-party data, which companies obtain from behavioral analyses and transaction data, zero-party data is shared explicitly and voluntarily and provides insight into how users actually want to interact with a company.

• Preference settings via the Preference Center, as well as information provided via contact forms, competition entries, feedback, survey responses, information about preferences and interests when creating accounts, and interactive content such as quizzes.

Accuracy and transparency are the biggest advantages of zero-party data. Users benefit in that they can specifically determine what data they disclose about themselves. This type of transparency and control over their own data also gives them a head start in terms of trust in the brand.

When we talk about a cookie-free future, data-driven personalization becomes more complex and therefore requires new approaches. Zero-party data offers a sustainable alternative here and enables equally relevant customer experiences without invasive tracking. Companies can use the preferences and intentions they have gathered.

Examples of this are:

• Personalized products and offers through loyalty programs, personalized recommendations such as curated watchlists and playlists, and relevant suggestions

The core of a successful zero-party strategy is transparency and added value. Users are willing to share their data as long as they see a clear benefit. This could be better offers, relevant content, or exclusive advantages. Product innovations and service offerings can also be specifically mapped in this context. For effective use of zero-party data, the information obtained can be combined with existing tracking and analysis processes. The resulting holistic approach allows for even more targeted personalization and recommendations.

Zero-party data is the basis for future-proof personalization and sustainable customer loyalty in digital commerce. It offers retailers the opportunity to focus on the real wishes and needs of their customers—in compliance with data protection regulations.