Using first-party data to create relevant personalised experiences

With Google set to phase out third-party cookie on Chrome browsers by the end of 2022, advertisers and marketers have to bring in newer ways to track data.

Websites have been using cookies to track user activity on the website and keep the record of the usage. These cookies have been used to provide the user a personalised experienced while on the website as it remembers the user’s activity. Third party cookies are used by websites other than the one that the user is visiting for cross-site tracking, retargeting and ad serving.

Now with Google deprecating third party cookies, there will be changes in the digital advertisers use data to personalise their campaigns. This has already led to an increase in the adoption of first party data by advertisers. First party cookies are those that are generated by the host domain or data that is collected directly by the advertisers from the users or their consumers.

In a third-party cookieless world, first party data is a valuable proposition and it is more or less free. Apart from the digital domain, first party data can also be collected via customer feedback, conducting surveys, as well as data stored in one’s CRM database. Since the data comes from a known source, there is greater control on keeping a check on issues like privacy concerns and better management of data.

How marketers can leverage first-party data?

According to a Google blog, there are five things that brands can do to harness first-party data’s full potential:

Tailor to customer objectives

According to Google, brands need to establish clear customer experience goals and align them to business objectives. They then need to create a plan with measurable goals to guide which data the advertiser collects and invests in. Calculate the cost of acquiring that data as well as related complexities, such as compliance with privacy laws, risks of data breach, and impact on consumer trust. This helps advertisers identify which data to prioritise.

Offer value in exchange for data

In order to address people’s concerns regarding how their will be used, brands need to stress on Consent Management. Google further suggests that brands also maintain customer trust through strong data governance. By managing data properly and implementing processes that ensure data accuracy and integrity, you can avoid data breaches while improving data accuracy, timeliness, and usability.

Invest in tech and organizational enablers

It goes without saying that such a strategy requires having the right people, technology, and processes in place. Google’s research shows that the ideal organisational model is a hybrid approach, wherein a brand takes data ownership and develops key capabilities related to data analysis and activation internally, and works with a trusted partner to fill any expertise gaps.

Test and learn to determine activation

Once a brand decides which first-party data is most relevant form them, they can focus on how they will use first-party data to improve customer experiences. These can range from one-to-one personalisation, which requires a significant amount of time and investment, to finding out the level of personalisation needed for specific audience segments.

Refine and validate with measurement

No strategy is complete without measuring its effectiveness.

Google affirms that first-party data provides valuable insights that can help deliver better customer experiences and drive business results. At the same time it calls on marketers to use first-party data responsibly.

Also read: Quora's category insights ebook is a handbook for advertisers in 2022. Click here to view the ebook.