If there’s one thing that we’ve learned after the passing of the California Consumer Privacy Act (CCPA), along with its European counterpart — the GDPR, is that the way we’ll be able to access and use data in the future will change considerably. Marketers will become more reliant on access to first-party data.
Retail Insight published a study recently, which found that nearly 93% of businesses were “not yet completely GDPR compliant” leading up to implementation and that pretty much nobody was ready for this radical shift in data usage.
While many marketers at the time could treat the GDPR as a European issue only, the CCPA has made it clear that we’re moving into a more privacy-centric data policy worldwide. The quicker businesses adapt to a first-party data world, the better they’ll integrate into the reformed business ecosystem.
Turning to a first-party data strategy comes with a broad set of benefits that range from building trust with your customers to owning the customer relationship.
In this blog, we’re going to look into the reasons why you should consider investing your business’s time, effort, and money into harnessing the benefits of first-party data.
Permission-based relationships between brands and customers. Real relationships cannot exist without permission or consent.
Focusing on collecting first-party data means you’re abiding by privacy laws and capturing important customer consent to receive marketing messages from your company. There needs to be interest or any communication you attempt, will be ignored.
You’re probably aware of the fact that we’re in the midst of a customer trust crisis. Businesses have been exploiting this facet of human psychology for way too long, which has resulted in the peoples’ distrust in marketers and corporations.
A very recent example of a privacy breach that’s been covered by the Wall Street Journal is Facebook collecting highly sensitive and rather intimate data from a whole range of health apps pretty much seconds after the user started using it. This is exactly the type of approach we should be trying to walk away from.
Openly disclosing what data you’re collecting from your clientele and what you’re going to do with it is a sure way to address the awkward silence between businesses and the consumers that are worried about their privacy.
CCPA, the GDPR, Google’s announcement that they’ll no longer allow cross-site cookies, and many other events are all part of a massive change in regards to the consumers’ privacy, and we should all embark on this “train,” in an attempt to restore the customers’ trust.
By changing the way you collect and use your consumer data, you’ll be able to create a self-sufficient marketing environment. You won’t have to depend on purchasing imprecise customer data from third or second parties.
Furthermore, cookies aren’t exactly the most viable solution. At the beginning of 2018, it was estimated that around 66% of mobile devices don’t accept cookies. Respectively, it’s safe to say that you’re missing on a considerable amount of potential customers.
Properly collecting, and owning your data comes with a range of benefits, compared to simply purchasing access to second or third-party data.
Being the owner of your customer data allows you to easily track unsampled site performance over time, which is a pretty costly service. Furthermore, imagine owning a couple of years’ worth of customer data, which comprises financial information, customer behavior data, and other essential data that you can apply in the future, without having to purchase less accurate information from other parties.
The digital ecosystem is going through a host of critical changes that are designed to ensure greater consumer privacy and a more meaningful business to customer interaction. While companies may have to deal with a bump or two while trying to adapt to these reforms, doing so will most certainly benefit them in the long run.
And we’re here to help you with that.