With Google’s decision to ban third-party cookies on their Chrome browser, many advertising, marketing and analytics companies have strung into panic. Brands are now being forced to rethink their marketing strategies and focus on more reliable forms of data collection like emphasis on first party data. This should be identified as an opportunity to alter tactics and implement creative ways on their web channels. The results of such efforts can be surprisingly better than ones from third party data. A report from BCG states that companies that link all of their first-party data sources can generate double the incremental revenue from a single ad placement, communication, or outreach, and 1.5 times the improvement in cost efficiency.
Benefits of First Party Data for Ecommerce
Lead with Loyalty Programs
Brands implementing a loyalty program on their ecommerce website or mobile app can reap benefits in collecting first party data. In such cases, customers are extremely motivated to engage with the brand to provide additional personal information that they would have otherwise avoided giving. Earning rewards and benefits can also appeal to passive audiences also to shop repeatedly on the website. Incentives for website specific events like subscribing to the newsletter, completing a quiz or their personal profile are becoming increasingly popular for brands running a loyalty program.
Build emotional bonds with your audience
Customers often feel connected with brands that understand their needs and cater to them continually. It is the brands’ responsibility to ensure that customer feedback is always considered and acted upon to deliver higher customer satisfaction. When brands engage with customers across the social media, email , mobile app and retail channels, the expectation is to provide a highly individualized shopping experience taking past behavior and purchase history as well as purchase intention into consideration. Brands should think about using all the intelligence collected from ecommerce channels and applying it to other channels real-time to provide a highly individualized experience. A simple strategy could be to implement a mobile Wallet solution that creates new ways for shoppers to shop from their mobile devices. Delivering personalized digital coupons or updates about in-store events or having a digital loyalty card makes the shopping experience extremely seamless as customers switch between online and offline channels.
Impact on Ecommerce
When brands show they are responsible with data collection and are using it to provide better shopping experiences, customers are inclined to assist with sharing more about themselves. With stricter government laws and data privacy regulations in place, Brands should prioritize implementation of consent mechanisms that allow customers to opt into experiences of their choice.
E-commerce brands like Amazon, Sephora, and Expedia have implemented customer-centric loyalty programs that provide not only benefits to customers but also a great shopping experience that has in turn helped brands retain their customers. Sephora allows customers to take a quiz on the website or complete their profile and get additional points as well as personalized recommendations. Hudson bay, Canada’s iconic department store asks customers to provide information about their body type to provide best fit recommendations without being creepy.
MOL Group, a Hungarian multinational oil and gas company launched its loyalty program in Croatia and Slovenia markets in the last 9 months. The Loyalty program app asks customers to fill out up to 20 questions in their profile to provide information like how often they fill gas, what is their daily average commute, which day of the week they prefer to fuel, etc. In exchange for this valuable information customers are awarded additional bonus points that they can use to upgrade their loyalty tier that earns them discount perks and free product benefits. Customers are also presented with personalized campaigns and offers which they can opt-in to qualify for benefits.
Annex Cloud Loyalty Experience Manager encompasses advanced customer retention and loyalty solutions, available for brands to take advantage of when creating their loyalty reward programs. Our Managed services offering provides best-in-class examples, expertise and recommendation for creating tailored loyalty programs to satisfy all the varying needs of the business that have seen tremendous growth in customer base as well as ROI. In order to learn more about us, get in touch with us today!