How to use first-party data to create personalized experiences

Many traditional marketing techniques are becoming obsolete as a result of tightening data privacy legislation and Google's plan to remove the usage of third-party cookies from its browsers. Marketers can still break through the clutter and reach their customers in this more stringent internet privacy environment, but they'll need a strong plan built on first and zero-party data.

Despite increasingly consumer-focused data privacy laws and rising worries, people still demand tailored marketing and shopping experiences from brands. In fact, two-thirds of customers say they want businesses to recognize their requirements and expectations. Personalization should still be a major concern in today's competitive commerce sector, but marketers need a new strategy to implement it.

Times are changing

Third-party cookie tracking is no longer supported by Mozilla's Firefox and Apple's Safari. Marketers won't be able to monitor a user's online activity throughout the web when Google gets on board too. Government agencies are increasingly regulating consumer data acquisition through laws like the General Data Protection Regulation of the European Union, which sets limitations on the processing and use of data.

Marketers could gather data about each user, like their age, online behaviors, location, and more, with the help of third-party tracking to offer a customized CX. They are now forced to depend on first and zero-party data. However, when marketers hear the term "consumer data," alarm bells start to go off, and they start to worry about privacy rules. This worry frequently prompts marketers to ignore what they could do with that data — or, more crucially, the value they will deliver to the customer in exchange for their data.

These frequently disregarded factors are crucial when you switch from your previous marketing playbook to a new one. It's essential to ensure you have the appropriate strategy, state of mind, and resources to thrive as you continue operating in a privacy-first environment where personalization still rules supreme.

Marketing playbook for first-party data

Refrain from letting concerns about first-party data prevent you from developing a strategy that benefits both your brand and your target audience. You can create personalized CX if you have the necessary skills and resources, uphold privacy laws, give your customers something of value and earn their trust.

While adhering to data privacy laws is essential, you should make the most of your data according to them. Keep up with new developments and regulatory changes. As privacy regulations evolve, you should collaborate with your internal legal teams and rely on technology to manage them.

Although most consumers are concerned about data privacy, shoppers are more eager to share their data than you think – but only if you provide value and transparency in return. Consider all the data Amazon has about consumers, including their habits, address, location, payment details, etc. In exchange, Amazon offers regular next-day deliveries and relevant, tailored content. You first need to decide what benefit you will offer in exchange for the data of your customers. However, Amazon didn't come where it is by accident. In addition to keeping their word, they are transparent about how they utilize, gather, and safeguard personal information. Customers need to believe that their data is safe, and sharing it with you returns to them as a value.

Using a smart data approach, you should develop thorough hypotheses and concentrate on the quality of your data rather than its amount. Start small by identifying a particular CX issue and testing a particular consumer population.

Tech and people

You won't get the desired results by pouring money into technology investments. Instead, invest strategically to transform first-party data into meaningful insights.

You need a diverse team of experts in the field with the necessary knowledge in addition to a strategic tech stack. You should have expertise from other departments, such as data scientists, content experts, and marketing specialists, to get a 360° view of any effort.

The techniques used by marketers and data professionals are always changing, much like their jobs. You may develop trustworthy relationships with your customers by offering value and transparency. Additionally, you can optimize consumer data for tailored experiences with a smart data strategy and a diverse team of professionals.