How Brands Can Keep Pace With Third-Party Data Changes

As companies change their privacy policies for customers, third-party data will become nearly impossible to obtain. McKinsey calls itOpens a new window “a reckoning for the advertising agency,” with up to $10 billion in U.S. publisher revenue at risk. 

We’re about to see a massive transformation in advertising and how customers connect with brands. This shift has many brands shaking in their boots. How can they break their dependence on third-party consumer data and still deliver the personalized interactions consumers demand?

The answer, as Glinda told Dorothy at the end of The Wizard of Oz, is simple: “You’ve always had the power, my dear. You just had to learn it for yourself.” Here’s how. 

See More: Gaining Data Governance Flexibility in the Cloud 

Say Goodbye To Third-party Data

In the name of privacy, third-party cookies and apps are disappearing, leaving a gaping hole in their stead. The California Consumer Privacy Act (CCPA) requires users’ explicit permission to share and use data generated from digital interactions, with other states following suit.

Major tech players are already making moves: Apple’s iOS 14 and future updates let users pick and choose the types of data apps can access. Google announced tracking cookies from websites will start phasing out of Chrome in 2023. Facebook saidOpens a new window it would eliminate tracking options for “sensitive topics.”

These are exciting announcements for users that value their privacy, but brands rely on that data to find new customers, improve their products, and create long-term brand affinity. What will fill the void? The answer lies within the virtual walls of your own systems — you must unlock and incorporate that data to power stronger customer experiences across the buyer’s journey.

Where Companies Should Start

To ensure an improved experience, pull data from different customer touchpoints. You’re probably already getting customer feedback via:

• Surveys: A great place to start better understanding your customer, but too many companies stop there. Survey data alone can’t improve CX — it lacks the in-depth information required to fully understand customer issues. You got a 1-star rating, but why? Urging customers to provide thorough feedback can uncover the reasons why they’re dissatisfied.
• Social channels: It’s often the conversations you don’t initiate that offer the most insight, whether positive or negative. Staying connected on social channels is the best way to stay connected to those conversations. Your customers often share their unfiltered thoughts about your brand across social platforms. You need tools that let you mine that social media data through keywords, sentiment, and competitor feedback.

Unlock Insights You Didn’t Even Know You Had

Beyond surveys and social, you could likely be doing more with channels you already have in place.

Community-driven CX

When most people hear “online community,” they picture social media channels such as Reddit, Discord, Twitter, or Meta. However, brand-owned communities offer hubs for people to discover knowledge and get answers from employees, partners, customers, and peers for any need. Brand communities create relationships with people after they receive help. Just as importantly, they offer insights into customer data, and at the perfect time, with third-party data phasing out.

Rather than leaping into a massive undertaking, launch newer or smaller communities in phases with internal power users and super users. Gain feedback and make adjustments before widely launching.

As growth continues, utilize your community to help each other! Users answer common questions from other users, sharing their unique experiences. This provides an ongoing resource and deflects queries to already overloaded contact centers while consistently updating SEO for your brand.

With the right strategy, team, and resources, brands can see resultsOpens a new window like $1+ million in call deflection, 82% accepted solutions, and more than 70% of community traffic coming from organic search. 

“Sorry, could you repeat that?”

Voice is the richest channel for customer feedback. Customers provide the most detail and depth when having a conversation with your contact center reps. That’s vital data you already own, but it often lies fallow within organizations, buried in call notes or recording files. 

Brands leave these sources untapped because the data can be difficult to aggregate and normalize. In fact, 80% of consumer feedback sits in unstructured sources like voice recordings, chat episodes or brand-owned community threads within brand contact centers, according to CIOOpens a new window . 

NLP + ML +AI! The future has arrived 

Using what Forrester calls “agnostic aggregation,” brands can apply natural language processing (NLP) and machine learning (ML) technology to offer comprehensive CX analyses, allowing for improvements that create happier customers and impact your company’s bottom line. 

The above taps into all your data to bring customers front and center — when you have that data at your fingertips, backed by AI-powered insights, you can make changes for the better. For example, one company implemented customer feedback by modifying its order exchange process, resulting in a 43% reduction in customers calling for return instructions and returns turning into exchanges on 58% of all returns calls.

The Conversation Around AI Ethics

The macro focus on data privacy invites the related discussion of AI ethics. Applications using AI technologies grow more intelligent every day, presenting a critical opportunity and responsibility as tech leaders to be stewards of ethics. 

Have daily conversations on how to promote ethical AI and ensure AI solutions abide by the correct guidelines and rules. Recent enactments like GDPR have shifted how companies collect and use customer data; organizations must constantly iterate on AI guidelines to stay up-to-date. 

The pandemic has necessitated a rapid clip of innovation; the need for technology skills will scale alongside the solutions they serve. In the long-term, we’ll demonstrate how machines and advanced tech help facilitate conversations rather than limit capabilities. 

What To Expect Moving Forward

Per Gartner, collecting and actioning feedback can increase upselling and cross-selling success by 20%. Compile inferred, direct, and indirect feedback from multiple sources. Look at transcripts, website behavior, and CRM systems. These techniques help identify intentions, wants, and pain points, better optimizing the customer journey. 

While organizations adapt to the shifting data ecosystem in the near term, expect tech innovations to follow suit. AI and machine learning may eventually mine enough data across consumer feedback channels to develop lookalike audiences, creating hybrid first/third-party models for brands to drive personalized experiences consumers demand.

Companies will also use shared data, partnering with other brands to effectively share first-party data within an ecosystem. By working together, you’re doubling your user data.

See More: The Role and Benefits of Big Data in Digital Marketing

As consumer data collection remains a focus among platforms, brands, and consumers, brands must devote more resources to designing CX and user experiences that emphasize privacy and consent. Creating safe experiences when customers exchange private info like credit cards or SSNs is a requirement. Building that continual trust is an ongoing endeavor.

Digital customers are more willing to share personal data with brands offering great experiences, from the first time they hear about you through every purchase. Per AccentureOpens a new window , 45% of customers will pay more for a product if that premium leads to a higher level of service. Customers accept that to be understood by a brand they love, they must share information about themselves and their preferences. 

Listen to what your customers are saying and dig into the why behind their feedback — you’ll set your brand up for long-term success. 

What steps have you taken to deliver personalized experiences in the absence of third-party cookies? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

MORE ON THIRD PARTY DATA

• Zero Party, First Party and Third Party Data — Who Needs What and When
• How does Third-Party Data Fit Into Today’s Financial Services Marketing