Data-backed insights on how explicit customer data transforms conversions, personalization, and trust for online retailers

Key Takeaways

• Zero-party data adoption is surging — Search interest grew 250% year-over-year, yet only 16% of marketers currently use it, creating a massive competitive opportunity
• Conversion impact is substantial — Brands implementing zero-party data strategies report conversion rate increases up to 296% with ROI reaching 96X
• Customers want to share data on their terms — 71% expect personalized interactions, while 84.1% remain concerned about how brands collect their information
• Trust directly drives revenue — 75% of consumers are more likely to share personal data with brands they trust
• The privacy landscape is shifting rapidly — 75% of the population now has modern privacy regulations protecting their personal data
• Personalization pays dividends — Companies leveraging zero-party data see 25% improvement in personalization efforts and up to 3x higher customer lifetime value

Understanding Zero-Party Data: More Than Just Information

Zero-party data represents information that customers intentionally and proactively share with brands—preferences, purchase intentions, personal context, and how they want to be recognized. Unlike first-party data collected through behavioral tracking or third-party data purchased from external sources, zero-party data comes directly from explicit customer input.

The distinction matters for ecommerce businesses investing in agentic commerce. When a shopper tells an AI agent they have sensitive skin, prefer sustainable products, or need a gift for a specific occasion, that's zero-party data in action. It enables immediate, relevant responses without the guesswork that behavioral inference requires.

1. 250% year-over-year growth in zero-party data searches

Interest in zero-party data collection has exploded, with searches growing 250% year-over-year according to Cohora research tracking keyword trends through Brightedge. This surge reflects mounting pressure from privacy regulations and the impending deprecation of third-party cookies forcing marketers to find compliant alternatives.

2. Only 16% of marketers currently use zero-party data

Despite the recognized importance, just 16% of marketers actively collect and use zero-party data according to the Supermetrics 2025 Marketing Data Report. Meanwhile, 58% still rely on third-party data—a strategy becoming increasingly problematic as privacy regulations tighten globally. This gap between awareness and adoption creates significant opportunity for brands willing to lead.

3. 85% of marketers identify zero-party data as essential for personalization

85% of marketers view zero-party data as essential for creating personalized experiences. The disconnect between this recognition and the 16% adoption rate suggests implementation challenges rather than strategic skepticism. Brands that solve the collection problem gain immediate advantage.

Why Zero-Party Data is Essential for Ecommerce Personalization

Personalization has become table stakes in ecommerce, but the methods for achieving it face increasing scrutiny. AI personalization powered by explicit customer preferences outperforms inference-based approaches in both accuracy and trust.

4. 71% of consumers expect personalized interactions from brands

McKinsey research confirms that 71% of consumers expect companies to deliver personalized interactions. This expectation has become so normalized that generic experiences now feel like poor service rather than the default. Zero-party data provides the foundation for meeting these expectations without violating privacy.

5. 60% of consumers willing to share personal information for tailored recommendations

Adobe research reveals that 60% of consumers will share personal information in exchange for tailored recommendations. The value exchange is clear—shoppers understand that better input yields better output. This willingness turns the collection challenge into a design problem rather than a persuasion problem.

6. 25% improvement in personalization efforts for companies leveraging zero-party data

Forrester Research documents a 25% improvement in personalization efforts for companies effectively leveraging zero-party data. This improvement compounds across the customer journey—better product discovery, more relevant recommendations, and more accurate sizing or compatibility guidance.

The Envive Sales Agent exemplifies this approach, listening and learning from explicit customer input to deliver highly personalized shopping journeys. When shoppers share their preferences directly, the agent can build confidence, nurture trust, and remove hesitation—creating space for the personal questions customers have always wanted to ask.

Boosting Conversion Rates with Zero-Party Insights

The revenue case for zero-party data collection is compelling. Brands implementing structured collection programs see dramatic improvements across key performance metrics.

7. Up to 296% conversion rate increase from zero-party data strategies

Companies implementing comprehensive zero-party data collection report conversion rate increases up to 296% according to Digioh case studies. These gains come from improved product matching, reduced decision friction, and increased shopper confidence.

8. 96X ROI achieved through zero-party data programs

Andie Swim achieved 96X ROI through their zero-party data collection strategy, demonstrating the multiplicative effect of combining explicit preferences with personalized merchandising. This return far exceeds typical marketing investments.

9. 469% increase in onsite conversion rate for Bonafide

Health and wellness brand Bonafide saw a 469% increase in their onsite conversion rate after implementing zero-party data collection, achieving a 14.8% conversion rate that contributed 6.64% of total online revenue. The sensitive nature of their products made explicit preference collection especially valuable.

10. 19% increase in average order value for IGK Hair

Beauty brand IGK Hair reported a 19% increase in AOV alongside 30% growth in color sales after implementing preference-based product guidance. When shoppers communicate their hair type and goals directly, recommendations improve and basket sizes grow.

These conversion improvements align with documented AI conversion funnel optimization strategies. Envive clients like Spanx have achieved 100%+ conversion increases and $3.8M in annualized incremental revenue by combining AI agents with customer preference data.

The Impact of Zero-Party Data on Customer Loyalty and Trust

Privacy concerns shape consumer behavior at every touchpoint. Brands that collect data transparently build trust that translates directly into loyalty and lifetime value.

11. 84.1% of consumers concerned about data privacy when interacting with brands online

Attest research reveals that 84.1% of consumers express concern about data privacy when engaging with brands online, with 41.2% describing themselves as "very concerned." This pervasive anxiety makes transparent collection methods essential rather than optional.

12. 75% of consumers more likely to share data with brands they trust

The trust-data relationship works both ways. Salesforce survey data shows 75% of consumers are more likely to share personal data with brands they already trust. Building trust enables better data collection, which enables better personalization, which builds more trust—a virtuous cycle.

13. 48% of consumers report greater comfort with brands collecting zero-party data

Marketing Tech News reports that 48% of consumers feel more comfortable with brands that explicitly ask for data rather than collecting it passively. The act of asking creates transparency that passive tracking cannot achieve.

14. 90% of consumers say brand transparency plays a role in purchasing decisions

Emarsys research indicates that 90% of consumers factor brand transparency into their purchasing decisions. Zero-party data collection inherently demonstrates transparency—you're telling customers exactly what information you want and why.

For brands prioritizing customer loyalty, zero-party data provides the foundation for the recognition and relevance that drives repeat purchases. Every conversation with an AI agent that remembers preferences reinforces the relationship.

Strategic Applications of Zero-Party Data in Marketing and Product Development

Beyond immediate personalization, zero-party data informs strategic decisions across marketing, merchandising, and product development.

15. 40% higher email click-through rates for fashion retailers using zero-party data

Fashion retailers leveraging preference data achieve 40% higher email CTR compared to generic campaigns. When emails reflect stated preferences rather than inferred interests, engagement improves dramatically.

16. 60% reduction in returns for fashion retailers with preference data

The same fashion retailers report a 60% reduction in returns when recommendations align with explicitly stated preferences. Fewer returns mean higher net revenue and reduced operational costs—a double benefit.

17. 99% of marketing executives say privacy concerns impact personalization plans

The 2025 Braze Global Customer Engagement Review found that 99% of marketing executives report their advanced personalization plans have been impacted by data privacy concerns. Zero-party data offers a compliant path forward.

18. 77% of marketers shifting focus from quantity to quality in data collection

The eConsultancy Future of Marketing Report indicates 77% of marketers are shifting from quantity to quality in customer data collection. Fewer, more accurate data points outperform massive datasets of uncertain reliability.

The Envive Copywriter Agent applies this principle by crafting personalized product descriptions informed by customer context. When the system knows a shopper's priorities—sustainability, specific skin concerns, budget constraints—it can adapt content to match.

Improving On-Site Search and Discovery with Customer Preferences

Product discovery remains one of ecommerce's persistent challenges. Zero-party data transforms search from keyword matching to intent understanding.

19. 48% of consumers prefer interactive surveys as their data collection method

Attest research shows 48% of consumers prefer interactive surveys when brands seek to collect data. This preference increases to 66.7% among consumers aged 18-24, suggesting younger shoppers expect and welcome structured preference collection.

20. 90% quiz completion rate for ASICS with 21.5 data points per user

ASICS achieved a 90% completion rate on their preference quiz, collecting an average of 21.5 data points per user with a 70% website redirect rate. High completion rates indicate shoppers see value in the exchange.

21. 84% completion rate for e.l.f. Cosmetics collecting 11 attributes per customer

Beauty brand e.l.f. Cosmetics reached an 84% completion rate on their preference collection, gathering 11 data attributes per customer. These attributes power recommendation engines and content personalization.

The Envive Search Agent embodies this approach, understanding intent and transforming discovery into delight. Rather than relying solely on keyword matching, it uses stated preferences to deliver smart, relevant results every time—never hitting a dead end.

Enhancing Customer Support with Proactive Zero-Party Insights

Customer support interactions generate valuable zero-party data while consuming it. When support systems understand customer context, resolution improves and escalations decrease.

22. 114% increase in one-month retention from personalized onboarding

ShareTheMeal achieved 114% increase in one-month retention by using zero-party data to personalize onboarding experiences. When the system knows customer goals from the start, it can guide them more effectively.

23. 53% increase in session frequency from preference-based personalization

The same program drove a 53% increase in session frequency, demonstrating that relevance drives engagement. Customers return when they expect value.

24. 6x higher click rates compared to benchmarks on in-app messages

Max (formerly HBO Max) achieved 6x higher click rates compared to industry benchmarks by using zero-party preference data to personalize content recommendations. This multiplier effect applies across industries.

The Envive CX Agent operates on this principle, providing great, invisible support that solves issues before they arise. When the system knows customer preferences and purchase context, it can anticipate needs and provide proactive guidance—looping in humans only when necessary.

The Privacy Landscape Driving Zero-Party Adoption

Regulatory and platform changes make zero-party data collection increasingly urgent for sustainable ecommerce operations.

25. 75% of world's population now protected by modern privacy regulations

Gartner projects that 75% of the population is now covered by modern privacy regulations protecting their personal data. GDPR, CCPA, and similar frameworks have fundamentally changed what data practices are permissible.

26. 55% of marketers expect zero-party data to become more important in next two years

The eConsultancy Future of Marketing Report indicates 55% of marketers expect zero-party data to become even more important over the next two years. Those building collection capabilities now will be positioned for the shift.

For brands navigating these changes, brand-safe AI that maintains complete control over data practices isn't just a compliance requirement—it's a competitive advantage.

Frequently Asked Questions

What is the key difference between zero-party and first-party data?

Zero-party data is information customers intentionally and proactively share—preferences, intentions, and context they explicitly communicate. First-party data is information collected through observed behavior—browsing patterns, purchase history, and click data. The distinction matters because zero-party data comes with implicit consent and higher accuracy, while first-party data requires inference about intent.

How does zero-party data directly lead to higher conversion rates in ecommerce?

Zero-party data improves conversion by eliminating the guesswork in product matching. When a shopper explicitly states their skin type, sizing preferences, or intended use case, recommendations can be immediately relevant. This reduces decision friction and builds confidence. Brands implementing these strategies see conversion improvements up to 296% because the path from interest to purchase becomes shorter and more certain.

What are some ethical considerations for collecting zero-party data?

Ethical zero-party data collection requires clear value exchange, transparent use, and easy opt-out. Customers should understand what data you're collecting, why you need it, and how it will improve their experience. The collection moment should feel helpful rather than intrusive. With 84.1% of consumers concerned about data privacy, demonstrating respect for their information builds trust that passive collection cannot achieve.

Can small ecommerce businesses effectively implement zero-party data strategies?

Yes, zero-party data collection scales down effectively. Small businesses can start with simple preference questions during account creation or checkout. Even basic information—product preferences, sizing, or intended use—improves recommendation relevance. The key is offering clear value for sharing: better recommendations, personalized content, or exclusive access. The 90% completion rates seen by brands like ASICS demonstrate that customers engage when the exchange is clear.

How can AI agents leverage zero-party data for better customer interaction?

AI agents transform zero-party data into conversational intelligence. When a shopper shares their preferences, skin concerns, or budget constraints, the agent can immediately tailor its responses, recommendations, and guidance. This creates the personalized shopping experience that 71% of consumers expect while maintaining complete brand control over every interaction. The combination of explicit preferences with AI reasoning produces measurable conversion lifts that static recommendation engines cannot match.