They are not only out of date, but also imprecise: Actually, cookies from third-party providers are supposed to support brands in this, consumers: inside personalized customers : to offer inner experiences. But the cookie monster went into business for itself.Today, publishers and advertisers use third-party cookies in so many ways that many cookie users do not just sweeten the day, but rather intervene sensitively in the protection of their personal data . So it’s no wonder that both Apple and Mozilla have blocked third-party cookie tracking in their browsers. Google will follow suit next year.
The crisis as an opportunity
Numerous data leaks in recent years, billions of stolen passwords. What happens when sensitive personal data is stolen, consumers around the world can sing a song about it. A clear mandate for brands to improve accordingly. Because most customers do not want to do without personalized, data-driven experiences.
To reduce the reduced trust to just one single outdated technology, however, falls short of the mark. New data protection laws such as the GDPR or the Californian Consumer Privacy Act (CCPA) have put trust at the top of many governments’ agendas. From Australia to Europe, regulators everywhere are working flat out to protect citizens from fraud, hacks and opportunism in an increasingly digital economy.
Transparency creates trust – and enables truly personalized experiences
Trust is therefore more than ever a central factor in the relationship between customers and brands. In return for high-quality, personalized experiences, well over half (80 percent) are quite willing to reveal their data, a study by Epsilon shows. But consumers want to decide for themselves which personal information they share with companies – and for what purpose.
But how do you manage to combine data protection and personalized experiences?
The magic word is transparency. How is my data collected and used? Who has access to my personal information? What rights and options do I have to object to the use of data or to adapt it? For consumers, these are highly relevant questions. Accordingly, your answer for brands should have top priority.
However, transparent communication is only convincing if the information does not lead customers directly into the arms of third-party cookies. Marketing specialists know that more than a third (35 percent) of demographic targeting misses the target group. The result: Consumers are shown unsuitable advertising. Personalization is different.
Build relationships instead of creating dependencies
With first-party data, i.e. the use of data obtained from direct relationships with customers, find data protection and personalization together. The key are customer profiles based on a large number of first-party data, which bundle information from all channels and touchpoints centrally. These numerous data points result in a precise picture of each: s: r customer: in, which enables precise conclusions to be drawn about their personal preferences and needs – and a correspondingly tailored communication.
The departure of third-party cookies does not mean that collaborations between brands will be a thing of the future. As long as there is a clearly recognizable advantage for customers and the cooperation is communicated transparently, brands can share first-party data with one another and use it together. For example, if a credit card provider and an airline cooperate, customers benefit from more personalized offers from the airline as well as rewards from the credit card provider. This increases the desire to travel and the mood to buy.
Trust creates added value
The departure from third-party cookies marks a crucial turning point in the relationship between brands and consumers: inside. Transparency and personalization are becoming central drivers to emerge stronger from the crisis of confidence. The new era of personalization relies on high-quality data and customer profiles that precisely reflect the needs of consumers. Many industries – from telecommunications to retail to manufacturing – are already relying on the new model. And that is just the beginning. In order to be successful in the “Cookieless Future”, all companies really have to realign their customer relationships.
Hartmut König is Head of Solutions & Strategy at Adobe.
