Wave goodbye to third-party cookies…and say hello to customer loyalty!
In a blow to the digital marketing world, Google announced plans to phase out
third-party cookies by 2022, which will have a major impact on business and the entire advertising industry. That’s not all. On top of this huge change, there are new regulations for data collection and privacy.
Why is this change so unnerving? How will it affect businesses and their online presence? Before we get to the heart of the matter, let’s take a look at some definitions to better understand the issues at hand and the role that loyalty programs play.
The death of third-party cookies
Third-party cookies, also known as third-party data, are small files of information stored on the browser of visitors to your site by another site. It’s, for example, what allows your potential customers to see your ad on other sites after they’ve visited yours. And these are the cookies that will disappear in the name of personal privacy rights.
Make way for first-party data
First-party data, also known as proprietary data, includes all information collected directly from your customers — via online, in-store, surveys, subscriptions or customer service.
This data is a major business asset — you can copy a product or obtain the same third-party data as your competitors, but you cannot copy the information collected directly from their customers. Proprietary data is, for this reason, a gold mine for companies.
Take the loyalty data collection route
What does the death of third-party cookies mean for companies in concrete terms? Basically, it involves rethinking the way we do business. In particular, it forces us to rely less on third-party data and more on proprietary or first-party data.
A very effective, compliant and transparent way to collect this data is through a loyalty program. Now more than ever, it’s crucial to invest in customer loyalty.
3 reasons to collect customer data via a loyalty program
The loyalty trend is on the rise: the Gartner 2020 CMO Spending Survey indicates that 7.1% of CMO budgets are dedicated to customer loyalty — and 64% of these chief marketing officers plan to increase this investment over the next fiscal year.
The death of third-party cookies alone is forcing us to change our data collection tactics. Here are three solid reasons to choose the loyalty program route today.
1. Provide greater transparency
Loyalty programs collect data in a transparent way — customers join programs and consent to it. This way is more honest and respectful of privacy. It’s basically an agreement between companies and their customers with straightforward rules that strengthen this relationship of trust. Along the way, these customers also receive benefits such as rewards, points and more.
2. Collect valuable business data
The data that loyalty programs collect is very valuable. Associated with each member, this personal information offers these programs greater insight into customer behaviour. The appeal for companies here is undeniable.
3. Deliver a personalized experience
A loyalty program allows you to offer a more personalized experience. When you know your customers well, you can provide them with a richer experience, tailoring messages, offers, contact frequency and channels to their needs. You can also offer them relevant rewards based on their value and engagement level.
Lay the groundwork today
Sometimes, it takes a major disruption to bring about substantial change. Calling Google’s plans to phase out cookies disruptive is an understatement. Faced with this situation, it’s best to be at least one or two steps ahead when it comes to digital strategy. The disappearance of cookies is an opportunity to change the way you do things and develop longer-lasting customer relationships — just by adding a customer loyalty strategy to your marketing mix. Don’t wait until the last minute to embrace this change!
Don’t know where to reduce your reliance on third-party data? See how to build a successful loyalty program here. Don’t hesitate to contact us if you’d like to learn more. We’ll help you implement the stratLX loyalty method, giving you all the tools you need to engage, attract and, most importantly, retain your customers for the long haul.
