The face of digital advertising is about to change forever. Already, third-party tracking cookies and similar technologies are obsolete, with Google is dropping support for tracking methods in Chrome, and Facebook inflicting a $10 billion loss on Apple. Internet users everywhere are increasingly aware of how data about themselves and their families is being exploited by companies, seemingly without their permission.
At the same time, expectations for customer experience excellence are rising, presenting businesses with a dilemma. How do you maintain CX excellence without the insights to tailor experiences to digital interactions? The answer lies in permissions-based customer data, known as zero-party data (ZPD). ZPD may be used with first party data (information customers give for operational reasons, such as address, payment preferences, etc.) not only to compensate for loss of third party data, but to go well with the beyond current levels of information. companies have on their customers. With better information comes better, more personalized customer experiences.
This is possible because trust is inherent in zero-party data: customers exchange something (their information) in exchange for something from the company (access to secure content, special offers, VIP services, etc.) . By proceeding on the basis of trust, organizations can improve the breadth and depth of key information that will enable them to create a new generation of meaningful relationships. Already, some companies are ahead in creating a unified view of all their customers across multiple sub-brands. They use first-party data from each touchpoint to create bespoke interactions, fully compliant with local legislation (like GDPR), and with, as Forrester defined it, “data that a customer intentionally and proactively shares with a brand.” This is zero-party data.
To successfully transition to a cookie-free future, organizations must meet their technology provisions for CIAM and CDP (customer identity and access management, customer data platforms). This may require investment in a new platform, but at the same time a shift in approach to managing valuable customer data, from one that passively receives information to one that proactively seeks data with explicit consent from customers. clients. Speaking at SAP’s Customer Experience LIVE 2021 event, Nestlé and Repsol shared their insights with attendees on this topic. By revamping and changing its data-centric approach, Nestlé was able to break down data silos and begin to create meaningful, personalized customer interactions at scale, across multiple brands ranging from children’s health to pet supplies. and confectionery.
Chris O’Hara of SAP said: “CIAM [is] the cornerstone of a relationship of trust. Give customers a granular ability to set their consent and preferences, per channel (ECPM) – and give them an easy way to change them, as their relationship with the brand evolves – is the next level [Our italics]. Therefore, brands need to start putting both CIAM and ECPM technology at the heart of their CX strategy, and this is a change of mindset for most brands, which view this technology as an “IT project” rather than like what it can be: a set of tools for developing zero-party data at scale to deliver better customer experiences. »
Spanish conglomerate Repsol has achieved its goals with a similar realignment of attitudes and use of technology. For them, “customer centricity” means meeting the energy needs of 24 million B2B and B2C customers in nearly 100 countries. Sales teams need a continuous flow of customer data to find the best fit for each user and business. But for Repsol and any other company adapting to the new landscape, it’s not easy. O’Hara points out several issues that lie ahead:
“Whether there is a downside to moving to an aggressive first-party or zero-party data management strategy [it] is that it takes a real exchange of value to get the data in the first place – things like offering discounts, exclusive offers, or great content for customers to exchange value (their data) for yours (services, information).
Any new approach to customer relationship management aimed at improving the customer experience requires a world-class CIAM platform, one that is able to pivot in the new paradigm. It will need to interoperate with other technologies that empower ZPD, such as marketing technology platforms capable of creating collaborative B2C and B2B spaces, where meaningful data exchange can occur.
But, with the right solutions, permission-based customer data can be a critical revenue and loyalty driver for brands around the world, empowering customers to voluntarily and proactively cross the line from customer to advocate. of the brand.