Today’s business environment isn’t only hyper-competitive; it’s full of self-aware customers who realize the extent of their power in the digital age. Customers don’t want to share their data. 

63% of consumers view brands as the biggest benefactors of data exchange. 57% of US consumers would rather do without marketing personalization and instead protect their data. That’s over half of the population. The struggle to capture consumer data is no joke; opt-out rates are high, and most marketers have trouble changing the tide. 

That’s where value exchange comes in. This principle boosts the customer experience, going beyond personalization to provide consumers an incentive in exchange for their data. The right incentives can take many forms, and we’ll explore eight different tactics you can offer consumers for a more value-driven trade-off.

What is value exchange?

Value exchange is a transaction where something, like goods or services, is traded for something of comparable worth. Although most often found in retail, this principle applies to marketing too. 

Loyalty programs, personalized offers, and more are given to consumers in exchange for insights straight from the source, or first-party data. That can be data like demographics, email addresses, and even reviews.

Why is data collection important?

If you convince your consumer to share data, that’s a golden ticket for scalable growth. You can contact your customer, offer them deals, and encourage them to buy and use your products  repeatedly. 

Having the right data from your consumers is the key to successful marketing. If you don’t know who your consumers are, how to reach them, and what they want, you could be spending money on tactics that fall flat or missing your target audience entirely. 

But data collection can be tricky; giving customers what they want is always challenging, especially for first-party and zero-party data. To get the information that will provide the most insight into your business, you need to offer an equal value exchange .

What are first-party and zero-party data?

First-party data is information that’s collected directly from the consumer passively. That means it’s pulled after an opt-in based on actions taken during an event or experience.

Zero-party data is collected from the consumer with their full knowledge and consent. They offer the data to you through forms, responses, and other methods.

Both are important to fully understand the consumer journey and gather the right data to support your advertising and marketing strategy.

Best value exchanges for customer data

When it comes to value exchange, here are some tactics that large and small companies have used to get customer data. 

Sweepstakes:

A sweepstake acts as a lottery. Consumers can win a prize by simply entering their contact information. Brands use sweepstakes to encourage value exchange and get consumers to provide their personal information or feedback. 

Not only are they great for gathering data, but you can also:

• Increase your consumer engagement
• Boost loyalty
• Partner with other well-known brands

Make sure the prize is relevant and worth something to your target audience; the last thing you want is to offer something no one is interested in. Also, beware of asking for too much information. Depending on the prize and the number of winners, you don’t want it to be difficult or time-consuming for consumers to enter. Prioritize the most critical information you need. 

Swag: 

Sometimes, swag is excellent advertising. Branded merchandise like t-shirts, hats, and totes can incentivize others to sign up for emails or even give social media information. The quality of the swag here is important; by offering limited edition versions of your branded merchandise, the perceived value is driven even higher! Consumers love exclusivity. 

Merch is a powerful tool for creating:

• Better brand awareness and loyalty
• Tangible connections between the customer and brands

Again, don’t ask for too much; unless this is limited edition, you might be better off going for quantity of data, not quality, and offer another value exchange down the line to add on to what you already collected. For example, a discount code in exchange for filling out a post-event follow-up survey.

Discounts: 

You might head to your favorite clothing brand’s site and notice a very special pop-up. 10% off if you sign up for text alerts! Search your feelings — do you feel uncomfortable? Overjoyed? 

This is an excellent example of the initial value exchange asking for a discount. That’s a certain percentage or dollar amount off a purchase. However, this is a tricky method that can’t always be relied on for a win-win situation. 

While signing up for an email list might be persuasive, sometimes getting phone numbers is too far. However, a 25% one-time discount might be the persuasion needed to get more information.

It depends on the value of your product and how much money the average transaction value is with your brand. Do your research and understand how much your target demographic spends with you and how much they spend on average to offer the best possible deal. 

Discounts work well for:

• Increasing sales
• Boosting average transaction value
• Attracting new customers

Exclusive Access:

Exclusivity: one of the most popular words in marketing right now. There’s something deluxe and prized about having or experiencing something not many others have. Exclusive access, the invite to a limited event or experience, can be an incredible tool for value exchange.

Depending on the quality of the event, the amount of information you can get in return varies. As long as it’s appropriate for your target audience, it’s a surefire way to encourage a larger-than-normal value exchange.

Exclusive access can:

• Deepen engagement
• Improve loyalty
• Create a sense of community 

Early Access: 

What’s better than being on time? Early, of course! Giving a consumer early entry to a new product or service is a great way to drum up hype and get zero- and first-party data in exchange for a sneak peek.

This is popular with retail brands wanting to release a seasonal line or a software company looking for beta testers. It makes consumers feel like they’re participating in the brand beyond just purchasing something and valued for their loyalty. 

Early access is a smart move for:

• Increasing loyalty
• Generating buzz around an announcement
• Better engagement 

Free Samples

If you’re selling a product with that’s newer to the market, or has lower market share, that can be a significant barrier to getting feedback and first-time customers. That makes samples a great bargain to get new advocates and information. Free samples remove the risk.

A free sample helps get people to try your product and convert, while still collecting user data. Make sure you have an easy path for giving feedback and collecting information like a QR code. 

Free samples can:

• Boost revenue
• Create new buyers
• Gather feedback on new products

Charity Donations: 

When you donate to charity, you’re not only doing a good deed. Deloitte found 90% of Gen Z buyers say they are more willing to purchase products they deem beneficial to society. It’s a great way to unite brands with a cause and earn loyalty.

Charity donations are also a great value tool for zero- and first-party data. When someone buys from your brand or attends and experiences, you can offer the option to swap data for a donation! This is also a great way to get feedback and demographic survey responses that might be a longer effort for consumers.

Charity donations are great for:

• Building brand loyalty
• Collecting in-depth information
• Establishing brand causes

VIP Experiences: 

Ah, to be a very important person. Isn’t that the goal of most people? And with VIP experiences, you can give the people exactly what they want. 

Backstage passes, tickets to special areas, or even behind-the-scenes tours — anything off-limits or premium in exchange for data. Whether it’s festivals, events, concerts, or even your brand home, this giveaway is great for creating a sense of exclusivity and community around the brands. 

The memorable experience is also a powerful motivator for a data swap and a fantastic FOMO (fear of missing out) motivator. 

VIP Experiences are the best way to:

• Transform loyalty into advocacy
• Create buzz around a brand
• Link your name to luxe experiences

Never underestimate the power of value

When you offer a gift or giveaway of equal value to your customer’s data, you’re not only arming your marketing team with personalized information and insights to help their strategies. You’re letting your customer know how much they’re worth to you and that you appreciate them. 

As long as your process is simple, memorable, and transparent, you won’t have a problem making everyone in the data exchange feel like a winner.

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