Strengthening Customer Trust and Loyalty in a Shifting Data Landscape

4/11/2024 Scott Bell

Data privacy is a modern business imperative, not just a buzz phrase in the digital landscape. Although customers were inclined to click “accept all cookies” without much thought in the past, this is no longer default behavior. Today, there’s a growing recognition among consumers about the nuances of data collection during their online engagements. 

The decision to phase out third-party cookies represents a crucial turning point in digital marketing. It signifies more than just compliance with regulations — it underscores the necessity to redefine marketers’ relationship with customer data.

Consumers are still willing to provide data, as long as it’s a win-win for both parties. Despite rising trends toward transparency, a 2023 data privacy study from Cisco revealed that 67 percent of consumers wanted companies to do a better job with their data-collection disclosures. How data is collected has become key to earning customer trust and loyalty.

First and zero-party data step up

Constant advancements in data collection have made it crucial for businesses to distinguish between different types of data in order to maximize audience understanding. Here's a breakdown:

First-party data: The cornerstone of data collection, this is information obtained directly through customer interactions with your platforms — websites, apps, social media, etc. First-party data offers genuine, organic insights into customer behavior and preferences.

Second-party data: This comprises another company’s first-party data, acquired with their consent for mutual benefit.

Third-party data: Data aggregated from various sources, often lacking the transparency and control afforded by first-party data.

Zero-party data: This category focuses on customer intent and encompassing information willingly shared by customers — purchase intent, preferences, personal context, etc.

First and zero-party data have emerged as the gold standard in the digital world due to several key advantages:

• Consent and trust: Because these data types are collected with explicit user consent, they foster transparency and build trust between businesses and their customers.
• Relevance and accuracy: Sourced directly from customers, first and zero-party data are inherently more relevant and accurate, providing deep insights into customer behavior.
• Control and compliance: By prioritizing first and zero-party data, organizations maintain control over their data strategy and ensure compliance with regulatory requirements.

To effectively collect first and zero-party data, businesses should: focus on creating engaging content across their social media channels; prioritize personalization and loyalty programs; and implement robust feedback mechanisms such as surveys and feedback loops. These strategies encourage active participation from customers and also demonstrate a commitment to understanding and meeting their needs.

The end of third-party tracking

Cookies are vital tools that shape user experience and advertising strategies. First-party cookies, integral to your website’s functionality, leave traces in visitors' browsers, ensuring seamless navigation by remembering their preferences and settings. Third-party cookies, established by external domains, underpin digital advertising efforts by tracking and profiling users across various online platforms. 

However, the landscape is shifting. Major browsers like Chrome, Safari, and Firefox — which command a significant share of the market — are phasing out third-party cookies in response to regulatory mandates such as General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

This transition marks a critical juncture for businesses, prompting a reevaluation of their approach to customer engagement. As we adapt to this evolving environment, each customer interaction has to be viewed as an opportunity to glean insights in an authentic, respectful manner, and with a focus on delivering value. Embracing this shift demands a steadfast commitment to transparency and integrity in data practices. 

By prioritizing ethical data collection and usage, businesses can strengthen trust and loyalty among their customer base. Each click represents more than mere navigation — it presents a chance to deepen understanding and curate tailored experiences that resonate profoundly with individuals.

Scott Bell is Vice President, Marketing Technology for RRD.