Bain & Company and Harvard Business School report that « increasing customer retention rates by 5% increases profits by 25% to 95%.«
The internet was initially driven by a human need to connect and collect information. For businesses to market and reach consumers via the internet there was a reliable need to get control about what their consumers were interested in by looking at their browsing patterns. When cookies were first released in 1994 web users didn’t know that anything or anyone was tracking their online activity!
Users Data can be collected as Zero Party, First Party and Third Party Data.
- Third–party data is any information collected by an entity not having direct relationship with the user the data is being collected on. This is collected from a variety of websites and platforms (like Google).
- First–party data is the data collected about your customers or audience, you own and manage.
- Zero–party data is that which a customer intentionally and proactively shares with a brand. Examples are: purchase intentions, personal likes, and preferences.
The removal of cookie tracking by Google Chrome starting 2022 is important to understand as Chrome accounts for 65% of the web browser market and half of all global web traffic.
This disruption calls for a proactive reaction, response and strategy from marketers and advertisers ASAP. « Trust Customer is still the king »- A Brand can build on their First Party and Zero Party Data to counter the fall in reach and conversions which will be seen once the cookies crumble(Third Party Data) in 2022. Below is a to do list to get this process going.
What Brands and Businesses can do
- To begin with get your marketing and IT departments to work together.
- Create a culture of data and information sharing in your organisation.
- Engage with a CDP or CRM to help you collect, organise your own First party Data.
- Link your First Party Data sources, such as- websites, Apps, Store Visits, Call Centres, Logistics, Point of Sales, Social Listening, E-mails.
- Create a consistent format of data collection and reporting across regions leading to a connected eco system across the business.
- After having done this start investing in your loyal customers, creating impactful customer experiences, marketing and advertising campaigns customised for them. Give incentives for your customers who comprise your Zero Party Data and are willing to share their data.
- Create Data piggy banking and cross targeting solutions within your Brands and eventually with co dependent categories for your products.
- Shift focus on Brand Building.
What Digital Advertising Agencies can do
- In response to the threat from media giants like Google and Facebook, who own their first-party audiences for targeting within their media buying platforms, advertisers will have to look at contextual and semantic targeting, building from personifying the loyal customers behaviors.
- Help Clients with creating more lead gen campaigns for both B2B and B2C, example with surveys, quizzes to gather consensual data to counter the dip in performance marketing.
- Test, Test and Test impactful ad formats and other ad platforms like Snapchat, Twitter, Microsoft, TikTok, Reddit, Spotify, Digital OOH, Podcasts, Mobile marketing, Sampling.
- Redefine measurement in the short run till your to do list starts performing! For example estimate a higher ROAS for the lower funnel conversions as this type of marketing is the best form of precision marketing!
Read below how, The store house of Data- « Google » validates the importance of First Party Data.
To summarise make your loyal customers your Brand Ambassadors and use their Data smartly!
The power of Technology, AI and innovation will very soon give a more sustainable solution to restore this crumble. In the mean time don’t hesitate to determine your digital maturity, find solutions and stay on top of the game and be a apart of this transformation in the world of Digital Marketing and Advertising.
Planning Manager at JOLT Digital