The impossibility of companies using data from third-party cookies is not fatal, but on the contrary presents an opportunity to enhance the use of first-party data.
Undoubtedly, the pandemic has had a lasting impact on consumer behavior, accelerating the transition to digital. During confinement, the Internet was the only way to stay in touch with family, friends, and colleagues, to enjoy or buy. However, with the loosening of restrictions, many of us have continued to shop online. According to FEVAD (Federation of E-Commerce and Distance Selling), 2021 e-commerce sales volume was 15% higher than 2020 e-commerce turnover while the holding period was shorter in 2021.
Brands can welcome an increase in volumes because in theory having more data can lead to a better understanding of customers. But with regulatory changes looming regarding the use of third-party cookies, caution is required.
In the digital marketing sector, data confidentiality has been a topic for a long time: how to improve the browsing experience of Internet users while respecting their choice about what is tracked or not. Over time, many legislative and technological changes have affected how brands collect, store and use customer data – it’s an ever-evolving field.
Today, especially in Europe, the customer is in a position to decide how brands use their data thanks to the General Data Protection Regulation (GDPR). This will be more the case at the end of 2023 when companies will no longer be able to access third-party cookies in Google Chrome, the world’s most popular browser with a 65% market share. Added to this is the fact that Apple allows users to block apps from being tracked within other apps, it’s clear that brands will have to work hard to stay relevant and connected to users in a world without cookies and privacy first.
No donuts? Not a problem !
Data provides companies with a wealth of insights into consumer behavior and preferences. They make it possible to paint a picture of the individual and communicate in the most personal way possible. Marketing managers fear that they will no longer be able to attract new customers due to the inability to use third-party cookies, which is legitimate, but they can compensate for this loss with first-party data, and consent-based brand characteristics, rather than using cookies External link. – Party cookies belonging to the platforms.
Currently, brands have unlimited access to first-party data. They can easily access it through their own channels and can maximize value with every interaction with the customer. However, with consumers now being able to decide not to share their data, this flow of useful information could disappear if brands fail to demonstrate the exchange of value that accompanies an improved and personalized experience.
Consumers want brands to see them as special people: to receive the right message at the right time and on the right platform. So companies must have agile technology to collect, analyze, and act in real time. The current supply chain crisis makes it critical to be able to adapt what is being offered to customers as they are on the go. Especially as customers are looking for updated information about product availability.
Transparency rhymes with confidence
In this new “privacy first” world, companies must earn the trust of customers to continue collecting increasingly important first-party data. If a successful experience is important to the customer, it is also essential to communicate clearly about the data collected as well as why and how it is used. With the risks of cyber attacks, transparency is needed to address customer concerns when providing their data.
We should not forget that requesting a lot of data from their customers can also give a bad image. Brands should consider whether they really need a customer’s phone number if nothing or personal information (mother’s maiden name for example) is not handed over to recover an account. It is essential to select the minimum amount of data necessary to provide a successful browsing experience.
Misuse of data can damage brand reputation and lose trust among the most loyal customers. The increasing focus on data protection should be seen as an opportunity for brands to improve data usage. In fact, delivering an excellent customer experience is not only an aspirational goal for brands, but also the key to their future success.