Third-party cookie depreciation is causing sources of data to disappear
Sixty-per cent of marketing leaders believe collecting first-party customer data with an appropriate balance of customer value exchange and privacy will become more challenging in 2023, according to a survey by Gartner, Inc.
A Gartner survey of nearly 400 marketing leaders conducted in November and December 2022 revealed that 85 per cent of respondents have implemented a formal policy to manage customer data, yet privacy remains an ongoing challenge. Despite this, marketers are leaning into personalization more than ever, with 42 per cent of respondents citing that they are executing one-to-one personalized messages to customers.
“Third-party cookie depreciation is causing sources of data to disappear, and many marketers are still scrambling to shore up their first-party data strategy,” said Ant Duffin, Senior Director Analyst in the Gartner Marketing practice. “As this data becomes more challenging to collect, marketers must adapt by leveraging new sources of data to fuel personalization and build deep customer relationships.”
Majority of Marketers Empower Customers to Manage Their Data
In response to growing consumer awareness of data privacy, 78 per cent of marketing leaders empower their customers to manage their own data. Eighty-two per cent indicate that their organization is prioritizing first-party data to create immediate value for customers.
“Almost a third of survey respondents said they have abandoned an agency or channel partner over the last year due to customer trust or privacy concerns, highlighting the gravity of this issue,” said Duffin.
Proactive Marketers Reap the Benefits of Prioritizing First-Party Data
Marketing leaders who act decisively to shore up first-party data achieve the strongest results. Over half of respondents who strongly prioritize the use of first-party data reported exceeding their customer retention expectations.
Marketing organizations that pursue multichannel strategies are more likely to take advantage of these benefits. Conventional wisdom suggests that brands that manage fewer marketing channels can more easily pivot towards first-party data. However, the survey found the opposite to be true.
Almost half of organizations that manage 11 or more marketing channels have increased their first-party customer data collection, compared with just over a quarter of those with 10 or fewer channels. Organizations with more channels are also more likely to be driving growth through new experiences and service channels (36 per cent) and are leveraging AI to deliver customer engagements (24 per cent).
“Data privacy is an issue that isn’t going away, and it’s imperative that digital marketing leaders build strategies that will secure the data they need while keeping the needs of customers front and center,” said Duffin.
Tags: data privacyGartner
