The Quiet Power Of First- And Zero-Party Data In An AI-Driven World

Forbes

12-06-2025

Ali Behnam, founder at Tealium.
In an age of predictive algorithms and AI-generated insights, it's easy to assume that more complexity equals more value. For forward-thinking brands, however, the most powerful data doesn't come from machines—it comes directly from customers.
First-party and zero-party data, gathered through real-time behavior and explicit feedback, are the secret weapons for brands seeking real, enduring customer relationships. They are proving to be more accurate, actionable and trustworthy than many predictive models. While AI has its place, there's growing evidence that listening to customers leads to stronger relationships and smarter business decisions based on pure, intentional insight.
In an era of tightening privacy regulations and the rapid decay of legacy tracking methods, businesses that prioritize data that customers willingly offer can set themselves apart. They can earn deeper trust and deliver personalized experiences that feel natural, not invasive.
Many organizations underestimate the power of simply listening to what customers are saying and doing right now. One of our customers, a major global brand, described to us how it had built a sophisticated segmentation model designed to predict customer behaviors and next best purchase.
In reality, its fancy model was often rendered useless within seconds of real-world customer activity. Predictive algorithms slotted customers into tidy segments, yet just a few moments of live browsing revealed completely different interests. For example, a customer tagged as a "TV buyer" would visit the site and start shopping for dishwashers. If the business had relied solely on predictive scoring, it would have missed that moment entirely.
First-party behavior and real-time zero-party feedback aren't just supporting characters—they're the main event. While machine learning is powerful, there's often no substitute for responding to what customers are doing and telling you in the present moment.
This isn't a call to toss sophisticated models aside. Predictive analytics is a critical component of modern marketing (i.e., customer churn prediction, lead scoring). However, leading with customer-provided data ensures that your marketing, product suggestions and experiences stay grounded in reality. When you put first- and zero-party data at the center of your strategy, you're moving beyond predictions toward active collaboration with your customers.
To unlock the full potential of customer-declared data, brands must be intentional. Here are four essentials:
• Create real value exchanges. Most customers will share their preferences if they clearly see what they gain—whether it's personalized recommendations, exclusive access, better experiences or rewards.
• Be radically transparent. Customers deserve to know exactly how you'll use their data and how it will benefit them. Trust is the foundation of any successful data strategy.
• Take immediate action. If you ask customers for their preferences and then ignore them, you risk doing serious damage to the relationship. It erodes trust and disengages the very audience you're trying to reach. Every piece of information shared is a chance to build loyalty.
• Keep it conversational. Gathering insights shouldn't feel like filling out a survey. Build natural, engaging touchpoints into the journey (quizzes, onboarding tools, product finders) that feel like part of the experience, not a chore.
The future belongs to brands that don't just collect customer data but actually listen and act on it. By elevating first- and zero-party data over black-box predictions, companies can create more human, responsive and, ultimately, profitable experiences.
In the end, the smartest move is simply paying attention to the clearest voice: your customer's.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?