We all know that customer data is like gold – but there is one exception: you can’t mine it, you have to mine it Earn. Surprisingly, few brands really understand data, and even fewer brands know how to make the most of their data potential.
During the pandemic, we have seen a significant increase in online sales. A goal that usually takes years to achieve under normal, non-global challenges is achieved within a few months. Brands can suddenly get more customer data than ever before—this data is sorted out from new buyers, touchpoints and deals.
However, these brands Lack of systems, models and strategies Putting data into use makes it difficult for them to gain valuable insights to shape better personalization, smart positioning and excellent customer experiences.
Today, businesses have begun to catch up, but many are still struggling to cope with changing regulations and consumer behavior.
Businesses must consider how much pressure the acquisition of third-party data is under, which hinders its use and availability. In 2020, stricter privacy laws were implemented to combat the ways companies collect and use people’s data.
This has especially affected advertisers, because They rely heavily on using third-party cookies to track consumers. The shift toward privacy-first internet is in a strong momentum.
The GDPR may have triggered this conversation, but its actions are as follows Google deletes third-party cookies in stages and Increased user selection The browser settings clearly state that data ownership now belongs to the consumer.
In 2024, Google launched an enhanced cookie transparency tool that requires users to opt-in before being tracked across websites. at the same time, Privacy first browser and ad blocker It has become the default setting, further weakening the amount of third-party data that brands can use.
This is a challenge for e-commerce marketers. one 2023 Adob Research The study found that 75% of marketers still rely on third-party cookies, highlighting the degree to which many marketers rely on external data in terms of targeting, segmentation and attribution.
Another caveat to consider is the confusion and risks involved in third-party data. Since this data comes from external brokers who buy and repackage data from different sources, there is a risk of low quality: the data may be outdated, inaccurate, or irrelevant to brand customers.
Alternatively, it may be at high risk and, if abused, may violate privacy expectations or regulations. Let’s face it, most of us value privacy and are reluctant to spread our personal information without our consent. So, this is not surprising 38% of UK shoppers now reject third-party cookies Because consumers are increasingly distrustful of their implementation.
As more and more large tech companies such as Google, Apple and Meta tighten restrictions on data access, it is becoming increasingly difficult for companies to collect, sell or share third-party data as freely as before.
However, this is not all doom and pessimism. The decline of third-party cookies does not mean the end of personalized commerce, but a shift in a better direction.
Zero Square Data is known as the new voucher for digital marketers who seek to personalize content, customize messaging and create a quality customer experience. But to truly realize its potential, we need to understand the difference between zero-party data and first-party data.
What is zero-square data?
Zero-Party Data is information that customers actively and intentionally share through interactions such as tests or polls.
What is first-party data?
First-party data is information that is passively collected through customer interactions with brand contact points and channels, such as product views and purchase history.
Using both methods can bring competitive advantages to e-commerce brands, reliably revealing customers’ preferences, interests and habits in a fully compliant way. So what about the reward? Shoppers’ Note: With 73% of customers expect personalized experiences, 41% are more likely to buy products from brands that offer them.
In addition, according to Seraj Bharwani, Chief Strategy Officer, AcuityAds:
“No doubt, first-party data is very beneficial for positioning and measuring without third-party cookies. Unfortunately, most brands don’t have a legitimate reason to interact with potential customers frequently unless they create new content, solutions and services that consumers value in exchange for first-party data.”
If third-party cookies disappear (which is possible), brands that have already collected first-party data directly from their customers will have a huge advantage. However, as Balvani said, most brands naturally do not interact with their customers often to collect this data.
The company must Earn Make customers willing to exchange their data by creating valuable tradeoffs, such as useful content or services. Here are some examples of engagement points used to collect zero-party and first-party data:
- Website polls, quizzes and questionnaires.
- Newsletter with tips and discounts.
- Sign up for an account in exchange for a reward.
- Topic content related to your product category.
- Product recommendation tools and chatbots.
- Marketing, website and application analysis.
There are many ways to adapt to the new normal of data collection and insight. Here are three best practices to help you make the most of your e-commerce data.
1. Use first-party data to achieve smarter personalization
E-commerce companies do have the opportunity to create more effective and personalized services. They can do this by collecting Related first-party data.
In an era where not all data is equal (and more importantly, not all data helps), the key to thriving in the post-cookie world is to focus on the following data:
- Meaning: Brands should try to gather insights so that they can create relevant, Value-added experience.
- Transparent: Businesses should communicate with customers in advance and tell them what they are collecting and why. After all, trust is money.
- Agree to drive: We should only collect data that is needed to enhance customer experience and let customers control sharing What do they feel satisfied with.
- Related: Quality takes precedence over quantity. Personalized messaging beats rough content every time.
2. Ensure data consistency across the entire e-commerce technology stack
If third-party cookies once dominated, the most valuable data today exists in the system you actually control. This includes your store, CRM, email and SMS platformall of which can be activated to provide personalization at scale without tracking users on a wider network.
Moving focus to first-party data also means double the focus on the channels you have: platforms and touchpoints that you can access your audience directly and consently. For e-commerce businesses, this provides new opportunities to gather meaningful insights, strengthen relationships, and provide personalized experiences.
Here are a few key areas to focus on:
Encourage account creation and login
Prompt customers to create an account (rather than checking out as a guest) gives you access to richer data. The key is to require sufficient information to provide a personalized experience without overloading users with unnecessary fields. A streamlined sign-up process coupled with clear value (such as saved preferences, order history, or faster checkout) can turn temporary visitors into long-term customers.
Go back to the basics, ask
Sometimes the easiest way to get to know a customer is to ask them directly. Short surveys, post-purchase feedback and live quizzes can be powerful tools for collecting zero-party data.
Build a loyalty program with real value
Loyalty programs are a powerful source of behavior and discount insights. When customers engage in rewards, refer friends, or choose personalized offers, they are telling you what is important to them.
Loyalty programs provide services through multiple own channels, including email, SMS and in-account experiences, can help you build deeper connections while continually refine your customer base.
3. Use AI to fill in the blanks
Even with the world’s most powerful first-party data strategy, some gaps inevitably exist. This is where artificial intelligence can really make up for this shortcoming. Today’s predictive AI tools allow businesses to model and predict customer behavior without having to track users on an open network.
Predictive AI helps bridge this gap by analyzing data you already have (such as past purchases, browsing habits, and engagement patterns) and using it to predict possible future actions. This can include suggesting the next best product, or determining when the customer is ready to buy it again, etc.
However, predictive AI really comes into play when providing rich, license-based data. By combining zero-party insights (e.g., intentionally shared preferences and feedback) with first-party behaviors (e.g., clicks, opens, and purchase history), AI tools can generate content and suggestions that are closely related to everyone.
This approach allows you to maintain a high level of personalization while keeping data usage transparent, respectful and consent-driven.
With the decrease in third-party data and the increase in the value of zero-party and first-party data, e-commerce companies are at a crossroads.
However, the best performing brands will be those that can adapt, finding new ways to capture zero-party and first-party data, convert it into segments, and create personalized content that is timely and relevant to their customers.
Email and SMS are the two most effective channels for e-commerce marketing. With the right third-party system, you can fully realize the value of data in the post-cookie world and continue to drive growth.
Through both channels, customers agree to listen to you, and personalization can bring huge benefits:
Brands such as A bright smile Already leverages zero-party and first-party data in its marketing strategy, it has achieved impressive results: The team leverages their data to increase customer loyalty, achieving a 36% repeat purchase rate through strong email and SMS marketing.
Klaviyo Data Platform (KDP) is built into Klaviyo’s B2C CRMunify all customer data and make it immediately operational in marketing, customer service and analysis.
With seamless setup, you can enable over 350 integrations to extract zero-party or first-party data from all your touch points: your store, your app, and even cheeky polls to collect into a central center.
Additionally, since security and compliance are built-in (ISO 27001 certified and SOS Type 2 reviewed), you can effortlessly ensure customer data is secure and meet CCPA and GDPR guidelines.
The next generation of data collection is versatile, personalized and safe. With Klaviyo and WooCommerce, you can transform zero-and-first-party insights into experiences that customers like, driving results.
Step into the future of data with Klaviyo.
Nicola leads Woo’s marketing operations to help achieve Klaviyo magic and more! Out of work, she is busy chasing a toddler and an Alaska Klikay, and a long list of handcraft hobbies that have never been realized.
