Third-party cookies are progressively being prohibited or restricted as privacy and data protection are becoming more and more in demand on a worldwide scale. Google has delayed completely doing rid of cookies until 2024, but the trend is there and it is obvious that third-party data will soon vanish. It's time to discard old equipment. Retail customers still demand personalized offers and enjoyable shopping experiences, despite their growing skepticism about how and by whom their data is utilized. 

What has changed?

Platforms for data management (DMPs), which were once crucial, are now obsolete. They are becoming obsolete as their efficiency and dependability deteriorate and they are overly reliant on external identifiers and digital signals. As a result of the loss of the primary data source for user monitoring online, DMPs will face challenges. DMPs must adhere to privacy standards and policies, as well as communicate openly and honestly with users and partners, in order to survive. However, because of the decreased data coverage and scalability caused by the inability to match and activate data across platforms, channels, and devices, the quality and quantity of data are continually falling. As a result, funding for first-person data gathering, organization, and activation is becoming more important than using other sources.

According to 7 out of 10 marketers, prohibiting third-party cookies makes it harder for them to provide individualized brand experiences. They rely on client data, which is now severely constrained by the idea of privacy, to produce a better user experience. 

Changes in privacy policies will lead to non-cookie marketing relying more on surveys, website analytics and social media interactions to create a personalised experience, increase engagement and conversions. Alternatives will include the use of first-person data, contextual marketing, consent-based approaches, unified identifiers, advanced analytics and modelling, and data partnerships. Additional sources of consumer information for retailers and their customers will include:

• surveys where consumers share their opinions on purchases, quality of services and service;
• transaction data from points of sale; this includes date, time, place, list of goods or services, payment method;
• newsletters and blogs - interesting content with additional incentives that users receive only by prior consent;
• built-in social media tools; 
• CRM data, provided that the personal information of consumers is protected.

The potential of first-person data for retail

Retailers are being pressured by the "cookiepocalypse" trend to gather structured first-person customer data and figure out how to use it effectively. Digital marketing is actively battling for them. Retailers rarely fully utilize customer and market data. Even though they have multiple sources for gathering data, they struggle with the lack of a top-notch system for analyzing and managing data sets. This deprives businesses of several chances to keep customers, foster loyalty, comprehend the requirements and preferences of their target market, and boost revenues.   

Depending on how well data is utilized, both consumer satisfaction and corporate profitability will be affected. According to the Experian Data Quality survey, 94% of retailers suspect that they have inaccurate data on existing and potential customers. Furthermore, 75% of those who improved data quality outperformed their annual targets. 

First-party data is a valuable asset that can be used to increase participation in loyalty programs, develop individualized offers and content, open up new communication channels, and monetize data and analytics. It can also help open up new revenue streams through retail media. It is gathered through customer loyalty programs, user preferences, sign-up forms, and cart contents. Customers who consent to the processing of such data provide retailers with important information about customer behavior and preferences. 

Modern loyalty programs that include customers across many channels and at all points in the buying process can be beneficial. According to experience, implementing a successful loyalty program that includes first-person data collection boosts merchant revenue by 3–5%. For specialty stores, gas stations, and other retailers, this number is significantly greater. Through customer loyalty, personalization, and commercial decisions regarding selection, space allocation, price, and promotions, the utilization of customer data boosts revenue in the core business. Opportunities for monetizing supplier connections become available. 

As cookies are gradually restricted, businesses must again get consent to collect first-party data. These notifications are now constantly displayed to website visitors, wearing them out and making them more likely to decline consent. 

First-person data for retail media

Data and analytical resources can be gathered through straightforward dashboards or individual audience behavior surveys. This can include feedback from consumer surveys of specific segments of loyalty program participants, results from product testing with small consumer groups, and analyses of customer segments, shopping carts, and behavioral data. 

Once the cross-functional potential of data has been revealed, it can be monetized and used in retail media to boost sales by an additional 1%–2% with a profit margin of more than 40% (which is substantially greater than the margin of the main business).  For retail media partners, this will

• provide direct access to customer information, which will allow brands to better understand customer behaviour, preferences and buying patterns;
• expand targeting opportunities and increase conversion rates of advertising campaigns through personalised messages;
• strengthen relationships with consumers through relevant recommendations, rewards and promotions that encourage repeat purchases. 

But data won't be useful or important until it produces the knowledge required to take action.

Customer data platforms (CDPs) and data cleansing rooms (DRCs) can assist in achieving this. They bring together many data sets into a single repository, providing you with a comprehensive understanding of your clients and allowing you to develop focused tactics. Data security and robust encryption are guaranteed by DRCs. Retail marketers will be able to gather anonymized aggregated data there to pinpoint consumer behavior patterns and assess the efficacy of advertising.

Retailers may take the lead by providing focused, confidential advertising with high conversion rates by giving up outmoded methods dependent on third-party data, such as DMPs.