By now, we've all heard about Google's decision to delay removing third-party cookies from the Chrome browser until late 2023. The delay, which gives businesses two more years to prepare their first-party data strategies, is a relief for most marketers.
So, what should brands do with this time to ensure they can achieve contextually relevant personalization come 2023—regardless of Google's plans?
1. Focus on fully using first-party customer data
First-party data is collected from the organic interactions with customers across brands' own channels and devices.
Begin your planning with an in-depth assessment of your first-party needs:
- Identify data gaps that will be exposed from a customer, channel, and behavior perspective that may not be able to be filled by first-party data sources.
- Question whether your first-party data sources can be replaced with other data sources—such as zero-party data, second-party data, or even purchased third-party data.
- Start evaluating technologies and techniques to help advance the collection and management of customer-level first-party data. That includes granular data collection technologies, as well as identity management and resolution processes.
As brands focus on first-party data and related tools, they will undoubtedly deal with more pure-play advertising methods to gain new customers (unknown users)—the work previously done by third-party data tools. Brands that maintain their ad delivery and analytics tools will have more control over where their advertising dollars are spent, which will lead to improved digital trust.
2. Apply analytics to first-party data to create growth
To gain necessary insight from first-party data, brands should start applying analytics now to their data so that by 2023 they have intelligence that can be used.
Start working to understand important customer metrics, including customer lifetime value (CLV or CLTV), Net Promoter Score (NPS), and other propensity-related metrics based on first-party data sources.
Also, consider how you can adopt what McKinsey refers to as the "growth triple play"—combining the use of creativity, analytics, and purpose to drive growth.
Organizations that apply analytics with purpose to spark creativity grow considerably faster than those that don't, McKinsey states. Applying analytics with purpose involves understanding various analytics types in more detail, knowing what type of data is needed to support those analytical types, and then preparing for the downstream steps of activation and automation.
3. Quit current bad data practices
The discontinuation of the third-party cookie will likely be a blessing in disguise for brands in the long-term. Why? Third-party cookies today are responsible for collecting user data on behalf of brands for the main purpose of behaviorally targeted advertising. Collecting such data allows brands to essentially "follow" you around the Internet.
But the data isn't always collected with the express permission of the user. Brand reliance on third-party cookies has led to poor marketing practices. Just because you can follow your visitors across digital domains doesn't mean you should.
Start considering now what the future of behavioral targeting looks like in your organization.
At first, replacing third-party data with first-party data may be a hassle from a data integration and security perspective. But it will ultimately benefit both brand and consumer if done correctly.
Plan data model creation, data movement, and other data processes with future first-party data needs in mind.
4. Establish and improve digital trust
Digital trust—the confidence that customers have in a brand's people, processes, and technology to create a secure digital world—is a hot topic today. Big tech brands are making the news for data breaches, and consumers have become very wary as to how they share their personal data.
As third-party cookies go away and brands are forced to rely on other data collection methods, a well-communicated "first-party data first" strategy will undoubtedly result in an increased level of digital trust between brand and consumer.
Brands must communicate a clear value exchange for the collection of first-party data. That means customers must understand what advantages they will gain by sharing their personal data—such as preferred access, options, and discounts. That exchange is much better for both brand and customer than the typical impermissible collection exercises of cross-domain behavioral tracking applications.
When you explain to customers the change to first-party data, the value exchange that will result, and the ways your brand will adapt to the change, they will understand that their privacy is being respected.
5. Activate and automate data processes for the future
Once brands have made the shift to deriving insights from a comprehensive data platform, they'll be ready to activate those insights.
Activation often includes disseminating information to groups and departments within the organization to educate them and thus improve the overall experience a customer has with your brand. However, activation also includes customer engagement, providing the means for omnichannel journey orchestration, the real-time sending and receiving of event information, and integration with other marketing technologies.
Once the process of moving from data to insight to activation is set up and thoroughly tested, you can make it repeatable with common process automation tools.
* * *
The best strategy for handling the demise of the third-party cookie is to plan on making the move to first-party data. That will include performing a first-party data assessment, applying analytics to your first-party data for useful insights, and then activating and automating those insights for business growth—all while removing bad data practices and communicating your new approach.
As you work through the progression, you may not miss those third-party cookies as much as you thought you would.
More Resources on First-Party Data
Continue reading "A Five-Point Plan for First-Party Data" ... Read the full article
MarketingProfs provides thousands of marketing resources, entirely free!
Simply subscribe to our newsletter and get instant access to how-to articles, guides, webinars and more for nada, nothing, zip, zilch, on the house...delivered right to your inbox! MarketingProfs is the largest marketing community in the world, and we are here to help you be a better marketer.
Sign in with your preferred account, below.
You may like these other MarketingProfs resources related to Metrics & Measurement.
So much of marketing is data-driven. But what makes data high-quality, and what are the advantages of vetting the data you use? This article covers the basics.
Industry events were famously difficult to measure ROI for... until they went virtual. Now, marketers can use the lessons learned from those virtual events to improve ROI measurement on hybrid and in-person events as well as digital ones.
Tracking email KPIs goes far beyond simply monitoring your open rates. This article outlines other important metrics to use, and how to track them.
Marketers love metrics, but they don't always track the ones that bring the most value to their company. Here are three examples of metrics that should be retired, and three that should replace them.
This infographic from Salesforce looks at what key email metrics mean and explores how you can use them to optimize your campaigns.
Data analysis does not exist in a vacuum; it is conducted by analysts who bring their inherent subjectivity to the process. It's time to acknowledge that and only then proceed to determine which metrics to track with holistic analytics.