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Power a More Personalized CX with Zero-and-First-Party Data


Collage illustration customer experience across different channels
Image: anatolir -

Consumers would prefer to do pretty much anything over reaching out to customer service because these interactions are inherently negative— the customer has an issue or problem that needs to be resolved.

The data backs up this aversion: 24% of Americans would prefer to shave their head rather than speak with customer service, according to a survey conducted by OnePoll on behalf of Twilio Flex. Acquiring new customers is around five times more expensive than retaining the ones you have. While that may sound extreme to some, here are other ways they’d prefer spending their time:

  • 30% would rather do their taxes
  • 28% would rather go to the dentist
  • 25% would rather go to the DMV

No company wants to be known for having bad customer service. But beyond that, a negative experience can lead to lost customers. Acquiring new customers is around five times more expensive than retaining the ones you have, which makes it all the more important to keep your existing customers happy.

Call center jobs can be quite challenging, with agent churn rates ranging between 30-45%. Plus, the average cost of training a new employee is $1,252, resulting in a lot of lost money for businesses.

The good news is that each time a customer reaches out with an issue, it’s an opportunity to delight them and turn them into a customer for life. And happy customers mean an easier time for agents, resulting in less turnover and increased revenue.

How can your business accomplish this?

By investing in tools that empower agents to deliver truly personalized customer experiences.


Consumers expect personalization

Customers are losing patience with impersonalized experiences. In fact 66% of consumers said they would quit a brand if their experience wasn’t personalized, according to Twilio’s 2023 State of Customer Engagement Report.

Businesses across the globe have embraced digital transformation over the past three years, and consumers now expect tailored, frictionless digital experiences across their preferred communication channels.

But our data shows an increase in dissatisfaction with brand interactions: 51% of consumers reported being frustrated with their interactions with brands in 2022—up from 46% in 2021. And while 46% of brands believe that they are doing an excellent job of providing personalization, only 15% of consumers agree.

To engage customers with meaningful interactions, businesses must look to owned customer data to drive personalization—especially when it comes to their customer service strategies. The upcoming deprecation of third-party cookies makes this a more difficult feat. That’s why obtaining first-party and zero-party data is crucial.


Brands must collect and deploy zero-party data

To offer meaningful, personalized customer service experiences, businesses need to proactively collect zero-party and first-party data. With the death of third-party cookies quickly approaching in 2024, it’s critical to start investing in the collection of these types of data now.

First, consumers want brands to use zero-party and first-party data whether third-party cookies are here or not. In fact, 50% of consumers say they left a website rather than accept cookies this year.

Second, the macroeconomy is putting a strain on marketing budgets, which means it’s more important than ever to invest in retaining the customers you already have and expanding their lifetime value. Again, every time a customer calls with an issue, it’s an opportunity to provide an experience that earns their loyalty.

Surprisingly, only 4 in 10 brands today rate their collection of and access to zero-party data as excellent. Brands that delay focusing on owned data will fall behind their competitors that don’t. Whether it’s for marketing or customer service, consumers won’t wait around until 2024 for truly personalized brand experiences. They expect them now.


Activate personalization across channels and set up agents for success

To read more about how brands can collect and deploy zero-and-first-party data to increase personalization, and how to equip agents with the right tools for success, read the complete Personalization Imperative Ebook.

Free download here.