A quick history of cookies
The digital marketing world is changing. If for better or for worse, we do not know yet, but we know that the death of the third-party cookie is here. Marketers need to be prepared for this new world, and the key factor needed in order to adapt is the ability to leverage your first-party data. Solutions such as Customer Data Platforms (CDPs) are essential in this context.
The Past:
We used to live in a world of third-party cookies. All the information we needed was grabbed through these cookies, and users were mega-identifiable. There was a very minimal portion of this data that was modelled.
The Future:
There is no point in separating the present from the future as the future is already here. In the aftermath of GDPR(The aftermath caused by the GDPR compelled ), technology platforms such as Google and Apple started working on initiatives centred around user privacy. Many of these initiatives have already deployed or are set to start in the upcoming year. Browsers, for example, such as Safari and Firefox, are already blocking third-party cookies, and Chrome, the biggest browser, is set to get rid of this functionality this year. Another example is the release of IOS-14, an update filled with features that protect user privacy and affect campaign performance.
The Paradigm of Privacy and Personalisation
“80% of Consumers say they are more likely to do business with a company if it offers personalised experiences” – (The power of me: The impact of personalisation on marketing performance” Epsilon, 2018)
Consumers nowadays expect a personalised shopping experience. Marketers have been able to provide these personalised experiences because of the ability to identify users based on third-party cookies. As third party cookies disappear, a new way of activating user data to leverage personalisation is necessary. In order to succeed, you will need a first-party data strategy. Here is where CDPs come into play.
What is a CDP?
A Customer Data Platform is a data tool that aggregates and organises user data across different touchpoints and a multitude of sources (such as social, search, offline conversions, call centre, CRM, etc) so that it can be used by other marketing tools, systems and techniques for activation. CDPs collect and structure data individually and into customer profiles. A CDP should be integratable, allowing you to activate your marketing and personalisation efforts easily and seamlessly.
Benefits of a CDP in the new marketing context
Customer Data Platforms are essential in the new privacy-focused marketing environment, some of the benefits include:
Capability to Recieve Data from Different Channels:
The ability to integrate with other platforms and channels is essential for a well functioning CDP.
Unified View of Customer/ Visitor Stitching:
Once the CDP is integrated with the different online and offline channels, one of the main benefits of a CDP comes into play. The ability to unify customer information from a multitude of channels into a centralised view of the customer allows marketers to create audiences and allows for hyper-personalised marketing strategies.
This is done through visitor stitching, which is the process of unifying the different user identificators across sessions, devices, channels, and points of contact.
Privacy and Consent
A good CDP in the privacy era has to adapt to the existent law. For example, it should allow for user information and data deletion requests.
Customer Segmentation and Audience Building
This 360 view of the customer that CDPs provide allows for audience segmentation and activation of these audiences throughout the whole martech stack.
Conclusion
CDPs are a great solution to enable data activation and personalisation. Transform simple customer transactions to retained relations by developing your CDP strategy.
If you want to know more about CDPs or you are wondering how we can help you implement a CDP strategy, let us know: info@makingscience.com
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