With third-party cookie practices soon headed for obsolescence, the findings from a new survey of CX professionals and marketers in Asia Pacific, the Middle East, and Africa show that brands must find new ways of acquiring intelligence on customer purchasing behavior, including implementing first-party data, in order to drive optimal CX.  

The survey, conducted by global marketing company Epsilon with the online community forum CX Network, reveals that most organizations remain unprepared to handle infrastructure flaws related to capturing or processing customer identity information. More than 60% of those polled say their client profiles are incomplete, hindering customer interaction. Furthermore, 24% possess fragmented data compartmentalized by channel or business function, making quick adaptation to changes in consumer behavior difficult to carry out.

“The decay of cookie technology is now forcing many brands to alter their strategies to meet changing customer expectations. Moving forward, CX practitioners and marketers should conduct frequent assessments of their data management and customer engagement strategies to deliver loyalty-winning customer experiences and boost customer lifetime values,” said Patrick Sim, senior vice president at Epsilon. 

For years, marketers and companies have used cookies to track consumer web activity and target potential customers with tailored ads. Cookies are small packets of data stored on a user’s computer and the browser, serving a wide range of applications that include authenticating users and keeping track of items in a shopping cart. More recently, third-party ad companies had also been gathering browsing data over an extended period of time, adding to the wealth of data they possess on consumer behavior.

The use of third-party cookies and extended access to consumer data have given rise to widespread concerns on privacy from consumers and regulators alike. Starting this year, most browsers will have blocked or turned off cookie tracking, leaving advertisers and marketers with little or no first-party data—that is, data shared directly by consenting consumers.

Sim said that campaigns run on third-party platforms rarely provide customer intelligence to companies, and the lack of intelligence in the system then leads to a vicious cycle of continued dependency on the platforms.

“The solution is to invest in owned platforms and software for customer engagement, allowing for relevant, timely, and compelling communication,” Sim remarked. “Businesses need to prioritize gaining an understanding of their data footprint and enhancing their data strategies, which must include capturing and leveraging first-party data to drive optimal customer experiences.”

In anticipation of the deprecation of cookies, 61% of respondents plan to alter their engagement strategies by selecting a solution provider to assist in managing customer identity data more effectively, the survey indicated. The traits of a provider desired most by respondents are accuracy (77%) and compliance (68%); cost considerations were negligible (2%).
 
Epsilon said in its statement that brands must begin increasing their spending and start focusing on managing consumer identification data, because navigating a post-cookie landscape and retaining strong customer loyalty will be critical.

“Brands should think about investing in platforms that can help them build direct relationships with customers through tailored engagement tactics, giving them an edge over their competition by increasing customer lifetime value through improved experiences,” Epsilon noted.

Based in Irving, Texas, Epsilon is a global marketing company known for using and relying on first-party data to build what the company bills as identity-based customer and marketing solutions. The company is part of Publicis Groupe, the French multinational advertising and public relations giant.