Cookieless Personalization and Privacy in a Web 3.0 World

3 minute read

By the end of 2024, Google Chrome will have fully released updates that’ll greatly limit the use of cross-site tracking by depreciating third-party cookies by default. This means brands will need to find cookieless personalization methods to enable effective targeting and deliver relevant experiences. Other major browsers will likely adapt too. Websites and web-based tools will need to adjust their offerings in response to these changes.

This evolution is resulting in a growing need to provide secure data management to protect shoppers and service users. Companies gather data to better understand consumers, but breaches expose user data all too often. Cookies are a relatively simple way to track user behavior and preferences. But now, consumers are demanding control over their data, who sees it, and how it’s used.

This article focuses on new(er) techniques for secure data management and storing zero-party data. It does not explore the importance of collecting zero-party data itself for loyalty program personalization.

6 alternatives that support both personalization and privacy

Here are cookieless personalization approaches to access zero-party data—including behavior, preferences, personality. They offer secure data management that prioritizes customer trust and peace of mind:

1. APIs and Authentication Tokens—Use short-lived authentication tokens or APIs to authenticate and authorize user interactions rather than persistent cookies. These tokens can be securely exchanged between the user’s device and your servers. This means you’re replacing long-term tracking and enabling relevant data exchange.

2. Local Storage—Rather than relying on cookies stored on the user’s browser, you can utilize local storage mechanisms such as localStorage or IndexedDB to store user preferences or session data on the user’s device itself. However, it’s essential to ensure that sensitive information is encrypted and secure data management practices are followed.

3. Decentralized Identifiers (DIDs)—DIDs are a type of identifier that enables verifiable, self-sovereign digital identity. You can store user information in a decentralized manner using DIDs, which allows users to control and manage their own identity and zero-party data.

4. Blockchain Technology—Blockchain provides a decentralized and tamper-proof ledger for storing data. You can utilize blockchain-based solutions to store user preferences, interactions or other relevant zero-party data in a secure and transparent manner.

5. Edge Computing—Edge computing involves processing data closer to the source (i.e., the user’s device) rather than relying solely on centralized servers. You can leverage edge computing to process and store user data locally on edge devices, minimizing the need for extensive data collection and storage on centralized servers.

6. User-managed Data Vaults—Empower users to manage their own zero-party data through personal data vaults or data wallets. These vaults enable users to store and control access to their data, granting permission to your companies or applications on a per-request basis—in essence doing their own secure data management.

Loyalty programs help you satisfy cookieless personalization, privacy and secure data management requirements

One huge benefit of your loyalty program is that it creates a mutual value exchange where customers willingly share their zero-party data in exchange for you using that data to improve their experiences with your brand. Your loyalty program allows you to collect your customers’ data with their consent, making it one of the best ways to satisfy both cookieless personalization and privacy requirements. Be transparent with your members and be sure to understand the secure data management practices of your loyalty solution vendor.

Looking for expert tips on designing a loyalty program that works for both your brand and members? Head over to our Loyalty Lounge to get tons of valuable insights while enjoying a Netflix-like experience.

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