How to earn with your own data in a future without cookies
This article is part of a special issue of VB. Read the full series here: How data privacy is transforming marketing.
In 2020, Google announced its plan to phase out third-party cookies, which will come into effect by the end of 2024. Although Google’s removal of third-party cookies is once again delayed, it’s getting closer. The pardon has done little to calm the fears of business leaders, publishers and marketers.
Even with the promised capabilities of Google’s Privacy Sandbox, many people are concerned about how a future without cookies will affect business models and marketing tactics, particularly around personalized digital experiences. But do not fear the inevitable changes, because there is a better solution for your needs.
Own data is going nowhere, and marketing trends were already moving in that direction. Now it’s just a matter of determining how to best capture and use all the consumer data available to you.
Purchase history, website activity, email engagement, consumer interests, mobile app behavior and more can tell you a lot about your consumers. But many marketing decision makers aren’t sure where to start, with 41% saying they larger challenge it will be the ability to track the correct consumer data.
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Why owned data is more valuable in the long run
Own data is the data of your consumers. Its collection, segmentation and use are entirely inside of you control, which means its accuracy and completeness are never in doubt. In addition, you have exclusive ownership, which can provide a great competitive advantage.
When used correctly, first-hand data also offers the unique opportunity to position your brand in a distinctive way, which can provide several advantages for you and your consumers, such as:
significant experience
As consumers share data, they tell you exactly what they want, often directly. So use first-party data to personalize consumer experiences in meaningful and relevant ways. From first discovery to actual purchase, make the journey as seamless and enjoyable as possible. Create useful content. Share it across channels. Look for ways to continually add value to purchasing decisions.
In terms of significant experiences, the Disney Genie Service does exactly that for theme park visitors. The service, integrated into the My Disney Experience app, makes recommendations inspired by what guests are interested in doing. The app will continue to suggest new options throughout a person’s visit to ensure they have the best time possible while in the park.
Greater customization
First-party data enhances marketing efforts by allowing you to personalize virtually every touchpoint along the consumer journey. Personalization can take many forms, but it often starts with dynamic audience targeting and dynamic content. Then you can explore product recommendations and personalized messages. Sending personalized emails drives engagement, as does direct interaction with consumers across all channels.
Amazon is a company that understands customization. The company collects information about users’ previous purchases, the TV shows and movies they’ve watched, and the items they’ve looked at while shopping. They take this information and give personalized recommendations on what to buy or watch in the future.
brand loyalty
As you deliver relevant and personalized consumer experiences to your target audiences, a level of trust begins to form. Trust is the foundation of all long-term relationships, including brand loyalty. It’s about meeting consumers where they are with the right messages at the right times on the right channels, and that’s made possible by first-party data.
Brands with loyalty programs can create personalized offers based on consumer data. Data it’s the holy grail of any personalization program, and a loyalty program is the starting point. But while a loyalty program can be used to enable personalization, it does not automatically equate to personalization. Personalization fosters brand loyalty because it allows consumers to develop deeper connections with brands and vice versa.
Where to start collecting consumer information
Although this should go without saying, the collection of consumer information begins with consent. After all, you are collecting information from real people, and being transparent with your first-hand data collection practices is essential. How will you use consumer data? How will you keep your information secure?
It is also important to incentivize data sharing. This is valuable information, and consumers know it. You have to give something to get something, and I’m not talking about a weekly email with some coupons. The incentive must be of real value to consumers.
At the same time, you’ll need a means of not only capturing your own data, but also analyzing the information at scale. Otherwise, it’s nearly impossible to extract actionable insights from consumer data to inform your marketing tactics.
Even then, however, different departments within organizations often “own” their data assets. When consumer data is stored in silos across an enterprise, it doesn’t just create barriers to data access. Data quality begins to suffer, as overlaps can cause inconsistencies and lead to poor decision making. You may think you really know your consumers, but in reality, you only know part of their journey.
In other words, any data analytics solution you come up with should also offer the functionality to aggregate your own data from all of your data sources. Only then will you be able to identify where exactly you are collecting consumer information from and make sure it is labeled correctly.
New ways to use first-party data for better results
Once you can trust the data at hand, you can turn your attention to optimizing the consumer experience in new ways across myriad channels.
Take something as simple as personalized product recommendations. Helping consumers quickly find the items they are looking for through contextual marketing increases the chances of conversion. It also increases the likelihood that consumers will return for additional purchases, allowing you to capture even more data and build a richer picture of your target audience.
Dynamic audience segmentation, on the other hand, offers the functionality to automatically filter audiences based on behavior. Instead of organizing consumers into 10 or 15 segments that best fit their personas, Dynamic Audience Segmentation allows you to continually segment your audience. This means consumers are consistently assigned to the most relevant segments based on their current activity, context, and historical data. Ultimately, this leads to continuous optimization of the consumer experience, improving marketing ROI.
First-party data also helps you enable predictive personalization to deliver better consumer experiences. Artificial intelligence and machine learning tools can assign consumers individual experiences based on unique characteristics and then deliver the content most relevant to their interests.
Suppose a consumer has been searching for kitten food, small pet travel carriers, and kitten-safe cat toys. Chances are they are looking for a new kitten on the market or have recently brought one home. The pet supply store that collected that data could start delivering content based on the kitten’s various stages of growth.
Third-party data may still be available, and you can certainly still use this information to create personalized digital experiences. Very soon, however, that option will disappear. So start preparing for a world without cookies now. With first-party data at the foundation of your future marketing efforts, you’ll be able to deliver more personalized and secure experiences for consumers and continue to drive business results.
Diana Keng is the CEO and co-founder of Breinify, a predictive personalization and artificial intelligence engine that helps brands curate dynamic and meaningful experiences for their consumers at scale.
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