Merchants and marketers need to be prepared that attribution, analytics, segmentation, acquisition and retargeting are in for a major shake-up.
Huge shifts in consumer online privacy regulations and the death of the ‘cookie’ as we know it has ignited new investments in first-party data.
First-party data is information a company collects directly from its customers . It can complement, enhance, and reduce the need for other types of data. This type of data is collected through tools and software you own - think purchase history, on-site behavior preferences, loyalty programs, customer service interactions etc.
Advertisers use third-party cookie data to learn about a visitor’s overall online behavior. Without third-party cookies we lose the ability to understand what websites a user frequently visits, what purchases they make or interests they have shown on other websites. This is the part that’s going away.
Third party data fills in the gaps – but first party data illuminates a customers relationship to your brand and their unique path to purchase. Your most trusted resource that has proven to generate the most ROI is the detailed interactions that your current consumers have with your brand (on or offline). We know today consumers expect accurate personalized experiences – driving retention and brand loyalty. Missing the mark results in churn and poor brand advocacy.
Here’s your to-do list:
Step One: Collect and organize. Create a data strategy - know all your sources, map across your customer journey and hone in what you’re collecting. Build customer profiles to increase the potential of your single customer view.
Step Two: Make sure you stack supports it. Break down those data silos - getting everything in one place can be a challenge. Collecting all of your data in one place requires smart CDP tools.
Remember, it’s a WIP: Most major platforms (from Google to TikTok and everything in between) are still working through how to adapt their technology to the new cookie-less world.
Step Three: Focus on creating authentic and engaging content to cultivate trust-based relationships. There is no doubt customers expect authenticity, don’t forget the most powerful tool you have as a brand is your ability to connect with your customers.