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Building unwavering customer loyalty: Your blueprint for maximizing value & driving ROI
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The impending doom of third-party cookie deprecation feels a bit like whiplash.
For the past decade, marketing and advertising experts have banged the drum when it comes to the impact of third-party identifier deprecation, which includes third-party cookies. And this doesn’t go without cause: Safari and Firefox removed third-party cookies from their browsers in the late 2010s, and new consumer privacy laws have caused tech giants like Apple to think differently about using third-party cookies on their devices.
But with the recent news that Google will not unilaterally get rid of third-party cookies on Chrome, opting to instead invite users to make “an informed choice that applies across web browsing,” marketers are still putting time and energy into using them for a majority of their marketing and advertising needs. According to new Epsilon research, “Preparing for a World Without Third-Party Cookies,” 75% of marketers say they’re still moderately to very reliant on third-party cookies.
The truth is that brands have a much stronger strategy right at their fingertips. Customer data is an incredibly rich asset that, when used securely and effectively, can drive outcomes that far exceed anything third-party cookies could ever do.
To start, brands need to understand the power of their data and how the right martech tools can bring first-party data assets to life.
Third-party cookies, on their own, were not that strong to begin with. While popular, these identifiers are generally weak and relatively unreliable when it comes to targeting, delivering and measuring ads. That’s because they rely on identity matching to connect people with devices and actions via inferences (also known as probabilistic matching).
This creates several gaps in the data itself. Individuals can look like several people (depending on how many identifiers like email or IP addresses are attached to them) and depending on the limited scope a brand can see, it may view people inaccurately and deliver marketing and advertising that does not motivate action.
First-party data, on the other hand, is customer data that can be tied to one person. When coupled with identity resolution that relies on a persistent identity that spans offline and online data, brands can fill in those gaps and harmonize the true view of a customer regardless of how many identifiers are attached to them. This creates rich, 360-degree profiles of real people, including what they’re doing beyond a brand’s owned channels.
Brands looking to move away from third-party cookies are looking toward first-party data strategies to enable person-first marketing. According to Epsilon research, 60% of marketers surveyed say they’re building first-party data strategies in lieu of cookie deprecation.
But one question continually heard is “How?” It’s a tall order for brands with potentially millions of first-party data points to get it in order. Step one is finding the right marketing technology that can take that data and make it usable.
The right solution takes a brand’s disjointed, unorganized or incomplete data and transforms it into an optimized first-party data asset on current and prospective customers. Identity resolution cleans, enhances, and unifies your data by using other types of datasets (including third-party data) to make pseudonymized, person-level profiles that allow for better personalization, higher campaign efficacy and more granular measurement.
Which type of martech you need—or which types you might want to combine for optimal use—depends on your accessibility to data currently and what you want to use your data for.
Solutions like customer data platforms powered by identity are great tools to get your data in order. These take existing first-party data, organize and clean it, and then optimize it for deployment, letting you know which messages, formats and channels best align to an individual’s preferences.
Loyalty programs can be incredible pieces of martech to start building a first-party data asset. These 1:1 connections allow you to really know your best customers. They also enable zero-party data collection (data shared directly by your customer with you, like preferences), which gives an even deeper understanding of your customers.
Data clean rooms can also be an option for brands that are restricted in their ability to get data, often times because of the nature of their business (for example, CPG brands that sell through retailers, not directly to consumers). Data clean rooms are secure spaces that allow brands to collaborate with trusted partners, expanding the scope of their data for prospecting, and also opening up a new source of revenue when combined with retail media networks.
Cross-channel engagement solutions (manage email, SMS, etc.) are a way to corner your owned channel messaging strategy and enhance your first-party data at the same time. Marketers can pick the best channel or path for customers, including unauthenticated customers who aren’t logged in when they visit your site. This builds more relevant messages for your customers through better journey orchestration.
Marketers will continue to struggle against third-party identifier deprecation as the digital world changes. But first-party data strategies will allow brands to take back the power of their marketing and use data as a tool to better connect with consumers.
Martech lays the foundation for a strong first-party data strategy that isn’t reliant on fickle and fleeting third-party cookies. These are future-proof strategies, and the right technology allows you to weather against headwinds today, tomorrow and the next day, too.
