more valuable than ever?

Article by Cheetah Digital, VP go-to-market APAC, Billy Loizou.

With the death of cookies, the “exchange of value” between businesses and their customers’ willingness to share personal data has never been more important. Enabling cookie-free data to improve customer experience and gain insight is a business and skill marketers need to invest in and grow in.

Marketers agree they must survive, lead, and stay relevant in a cookie-free society – a reality looming on the horizon. Leading with loyalty and adopting a Zero Party Data strategy will help marketers survive by creating lasting customer relationships with a clear and concise exchange of value.

It’s time for a new marketing recipe.

How will life change for marketers?

It is a stressful time for traders. Many believe their lives will be turned upside down to the nth degree without cookies. But, maybe a different perspective gives stress relief and shows that there will be life after the cookies die.

Technology doesn’t need the vast treasures of personal data gathered across dozens of websites and apps to be successful. Advertising has existed and thrived for decades without it. And we are here today because the path of least resistance is seldom the path of wisdom. If a business is built on deceiving users, exploiting data, making choices that aren’t at all, then it doesn’t deserve our praise. He deserves a reform.

This digital marketing reform, which leads to the death of the cookie, is based on international regulations. the General Data Protection Regulation (GDPR) is a regulation on data protection and privacy in the European Union. This model is adopted for the APAC region, which will disintegrate the use of cookies in digital marketing.

Brands, publishers and big tech could face legal ramifications, potential class actions, and regulatory penalties for violating the GDPR. Businesses will no longer be able to assume that if they cannot identify someone by their IP address, for example, that the Privacy Act does not apply to them. According to the legislators’ proposals, this will be the case.

Challenges, Opportunities and Saying No to Data “Leasing”

But there is life after the cookie dies. Zero-Party data can help marketers connect with their customers. These preference data come directly from the consumer. There are no middlemen or guesswork – it’s psychographic data that includes clients’ values, attitudes, interests, and personality traits.

The CEO of a research center notes how clunky and outdated data processes are.

“Research shows that 70 percent of consumers accept [consent] terms, even if they are not comfortable with them. When asked why, three quarters answer that it is because it is the only way to access the product. There is no way for consumers to express their preferences and acquire products that meet those preferences – because it is a take it or leave it proposition.

“Over 90 percent of Australian consumers are uncomfortable with the way their data is collected and shared, and they don’t have the power to do anything about it. They want the government to step in and take action. and protect them. “

Consumers are protecting their personal data more than ever. In the Australian Community Attitudes to Privacy Survey 2020, 7 in 10 respondents identified privacy as a
concern for them, while 87% wanted more control and choice over the collection and use of their personal information.

So what is the solution? Businesses need to stop renting data and build their own database through Direct Consumer Relations (DTC). The key to future success lies in building a loyalty initiative that delivers mutual value. Customers can voluntarily provide their personal data in exchange for a better customer experience.

Why fidelity?

Loyalty has today become a multifaceted tool. It helps bring customers back to a brand and simultaneously helps brands understand their customers.

Loyalty began as a simple token program in the 1700s in the United States. Then, US retailers started giving customers copper tokens with purchases that they could then use for future purchases.

In the 1800s, the British company Green Shield awarded stamps for purchases at certain retailers which could later be redeemed for catalog products. 200 years later, loyalty programs have evolved from simple stamp cards to sophisticated programs benefiting both retailers and customers.

The goal of customer loyalty programs has always been to create levers that marketers can pull to entice consumers to engage in desired behaviors, such as increasing cart size or reducing the time between transactions. But now they are much more than that. Loyalty programs aren’t just about offering discounts and coupons to members; they are an extension of the brand and provide an “experience” beyond the product or service that builds customer loyalty.

But what makes a good loyalty program? Another CEO shares seven zones. They recommend that organizations implement each of these points to ensure they have a strong and consistent loyalty program that will benefit both customers and brands.

1. Company: Above all, a business must be profitable and sustainable
2. Members: Organizations must understand the behaviors, beliefs and assets of their loyal members
3. Program: The loyalty program must be meaningful and desirable to consumers
4. Team: Employees of the organization must join the loyalty program and be ready to approve it
5. Technology: Technology must be fit for the future rather than the future
6. Data: Ensure that the loyalty program captures the data necessary for analysis and relevant action
7. Dialogues: Any dialogue between the company and the client must be dynamic and personal at all times.

A multifaceted loyalty program

An iconic brand provides an example of an evolved loyalty program. This year, they launched a mobile loyalty program first rewarding customers for their engagement with the brand through social media.

The loyalty program provides added value to customers and, in turn, enables them to develop a better understanding of their customers. This symbiotic relationship has created better customer experiences while reaching 12 million members in just two years. Additionally, nearly 50% of all DTC revenue comes from their loyal members, and they see significantly higher spending from loyal members than non-members.

Loyalty data has helped this brand in five ways:

1. Identification: Be able to identify customers across devices and channels
2. Preview: Learn more about what customers like to do
3. Personalization: Help create a messaging system that resonates with customers and therefore promotes trust and data enrichment
4. Preference: Understand and activate the relevant brand message on the preferred channel of customers
5. Attribution: Measure the results of marketing campaigns

Unlocking the value of loyalty in a cookie-free future

The importance of loyalty programs should not be overlooked as an essential part of a marketer’s toolbox. Loyalty programs are the perfect replacement for connecting customers to brands in new and innovative ways, now and beyond a cookie-free world. They offer organizations a clear, unbiased data approach to unlock deeper insights into their customers, unlock new CX opportunities, and open powerful new avenues for forging longer, more meaningful customer relationships.

Joseph P. Harris