Understanding customers when cookies are nonexistent
Big tech has ruled the roost over several years, controlling up to 80% of web traffic. However, legislation is catching up and regulation like GDPR, first introduced in 2018 by the EU, is only the start of this governance. In late 2020, updates to website cookie notices, to inform users of third-party cookie usage, are required and if companies were not compliant it could lead to heavy fines.
These third-party cookies have an integral role in the digital advertising business and giving businesses visibility on their web users.
The latest announcement from the world’s largest browser, google chrome, is very important. Google will phase out third-party cookies by 2022. While other web browsers Firefox and Safari have already stopped tracking cookies. A cookieless internet will give web users more privacy and control over their data while online.
What does this mean for Marketers?
The elimination of third-party cookies online will lead to reduced visibility on web traffic, trends, behaviour and customer preferences for businesses. This will make it more difficult to target advertising, profile customer and expand digital footprint using similar audiences and advertising. It will also give rise to first-party data.
What is first-party data?
First-party data is consumer information collated directly by your business, based on user behaviour. This data can be used to build a profile of your target audience, tailoring your marketing and user experience accordingly.
Why first-party data is important?
First-party data will become crucial for marketers and business owners. First-party data is used to understand customers and build audience profiles. This information helps businesses to form a deeper understanding of their customers wants and needs and enable businesses to cater for their customers best.
Businesses need a data strategy to build out customer profiles, but it also requires software. Customer loyalty technology can capture, manage, profile customer and transaction data, create an effective output across multiple touchpoints. Giving marketers and businesses owners clarity and insight into their customers’ behaviours.
“84% of consumers say that being treated like a person and not a number, is very important to winning their business”.
Digital loyalty software is the perfect tool to deliver personalisation and unique customer experiences to your customers. Customers are more likely to give personal data in return for a customised experience with a brand. This consensual data exchange between customer and brand allows the brand to learn, personalise and form deeper connections with their customers. Ultimately, leading to increased customer loyalty and trust.
Cookies and other third-party data are a thing of the past. Continuing to build a marketing and sales strategy using them is the equivalent of being in quicksand and time is running out. It’s time to start looking at consensual customer data capture methods that brands and their customer can fully benefit from.