How To Make Business Future-Proof Using First-Party Data in Cookie Less World?

Google plans to officially stop supporting third-party cookies on its Chrome browser at the end of 2023. The cookie less future is almost here and signaling the end of using third-party cookies for targeted advertising.
This will affect 40% of US web traffic that comes from block cookies and third-party cookies for advertisers. You don’t have to be grim about this news.
These sweeping changes in cookie policies mean that businesses will need to rely more on the use of first-party data. Businesses that don’t rely on the customers’ data will find themselves behind the wall.
The first-party data strategy has gone from a nice-to-have to a necessity in record time to enhance the retail customer loyalty program.
Here, you will get to know how businesses can connect better with customers and grow their business by leveraging the power of first-party data.

What is Meant by Cookie Less Future?

Google to stop supporting third-party cookies on its chrome as opposed to first-party cookies is meant by “Cookie less Future”. Cookies have been around since the beginning of the web which makes surfing websites more convenient with instant loading of pages.
They are used to track and identify users’ base and behavior around a website for behavioral advertising and retargeting ads.
Tech companies use this data to deliver relevant ads according to the behaviors of the consumer.

What is First-Party Data?

First-party data is always a key to success in the competitive market. With the world shifting towards a cookie less future, first-party data will become the top priority for businesses.
It shows valuable information about the audience – purchase history, website activity, email engagement, interests, behavior, likes, dislike, social engagement, etc.

But what makes it different from second-party and third-party data?
Second-party data is the data that marketers purchase from survey agencies and partners who get it directly from their customers.
While third-party data represents information that various NGOs, governments, and organizations have no direct relationship with the customers.

How To Collect First-Party Data?

Website Usage – A company or business website generates the right information about visitors. This information shows -how many times users visit your website, customer behavior, age, location, etc.
Information From Email Subscriber – Email subscribers are loyal customers who want regular updates from you. This helps you in generating more personalized information such as your average email open rates or the type of emails that your email subscribers are interested in receiving.
Social Media Channels – Today, social media channels have become an important part of business as it has traffic of audiences. Businesses are in a race to drive social engagement of the audiences with their brands and establish recognition.

How First-Party Data Can Grow Your Business?

First-party data are more valuable than most marketing professionals think. That’s why it is not going anywhere. Businesses, enterprises, and organizations analyze first-party data to attract their target audience more efficiently.
It contains valuable information about your consumers’ data. The accuracy of these data is so correct that it cannot be segmented and is entirely within your control to provide various advantages to your business.

Understand Your Target Customer

Understanding your target customer is the first and key step for the growth of any business. It helps you to determine your customers, conversion rates, behavior, demand, location, average order value, maximum time spent, etc.
Many retail businesses are already using first-party data to understand their target audience. It’s also important to incentivize data sharing which means that you must give something to get something.
Otherwise, it’s nearly impossible to extract actionable insights from the customers. Customer loyalty rewards program management system software allows you to provide rewards to your customers in exchange for receiving valuable data from the customers.

Personalize Your Content for Improved Conversions

First-party data helps you to create content and messaging across your marketing and communication that is most relevant for your customers.
When your messages and contents are more relevant for the customers then your business is likely to see better outcomes as well as improve the conversion rate of the customers.
Retail customer loyalty rewards program for businesses helps you in delivering more personalized content and rewards to the customers.
Thus, the invaluable use of first-party data has a huge impact on your business’s bottom line and improves conversion by delivering more personalized content.

Increases Brand Loyalty of The Customers

The relationship between you and the customer should be mutually valuable, the more you are connected with the customer, the more information your customer will provide.
Providing their data to you is a sign of having brand loyalty among the customers. Trust began to form when you start delivering personalized, relevant consumer experiences to your target customers.
Businesses with customer loyalty reward programs management system software can build personalized offerings based on customer data to increase the brand loyalty of the customers. This develops deeper connections with brands and fosters brand loyalty.

Higher ROI (Return on Investment)

Third-party data can help target new customers, but first-party data will always help you in retaining existing customers who are more interested in making purchases with your brand.
Existing customers who have already given you their first-party data are likely to spend more than the new customers.
Retail customer loyalty rewards program software for businesses makes it easier, more effective, and less expensive to collect first-party data from your existing customer base.
It is estimated that businesses with retail customer loyalty programs achieved an increase of up to 2.9 times revenue uplift.

Wrapping Up

First-party data is an invaluable resource that businesses can use to reach their audience and make it useful for their business objectives.
In the cookie less future, businesses and brands with retail customer loyalty programs will stand out to personalize the customer experience.
Want to improve your customer retention rates, reach new audiences, and generate more revenue for your business?
Clavax Technologies is an end-to-end loyalty solution provider that enables startups as well as enterprises to build robust and flexible loyalty solutions aligned with the latest marketing approach. Book your demo now to find out more!