“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.
Today’s column is written by Matt Chmiel, strategy director at Siberia.
The most successful marketers recognize the difference between passive data collection functionality and dynamic data collection experiences.
Today’s digital market is built on a passive data collection infrastructure that automatically translates a user’s visit into actionable marketing data (think third-party cookies and other stealthy data functions).
The post-cookie marketplace must be reimagined for active customer data collection. In this context, both the customer and brand are incentivized to create a more direct and reciprocal relationship in which both reap the benefits. The value exchange is transparent, and customers control their data, alleviating privacy concerns.
How do you make the journey from passive to active data collection?
Start with these four steps.
- Explore ways to attract and keep customers engaged
Draw inspiration from loyalty programs, such as those provided by Sephora and Starbucks, to create a better value exchange between brand and customer.
And allow customers to set preferences early and be transparent about how the information will be used. For example, Jebbit is a platform that enables brands to set up customer quizzes that collect preferences for their products. In return, the brand will make recommendations based on those preferences. The interaction ends with a request for an email.
- Think about customer relationship management
We’re all witnessing the race to capture as much data as possible to replace third-party cookies. But it’s what you do with that data and how you manage it that counts.
There must be more centralization and organization of data as you transition into active collection methods. This essential operational component ensures the collected data converts into meaningful customer outcomes. Without it, brands risk deploying a constellation of one-off features that do not merge into a complete customer picture.
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It is also essential to set the frequency and cadence of customer interactions. To put it more directly, do not act thirsty about data collection. You risk losing the customer before they engage.
- Keep Web3 top of mind
Web3 promises a new digital environment that can codify customer relationships differently.
Nike’s acquisition of RTFKT demonstrates this thinking and has been resonating with its customers. According to data from Dune Analytics, with just six drops, including a virtual sneaker collection called Cryptokicks and an AR hoodie paired with a real-life counterpart, the partnership has helped Nike’s total NFT revenue reach more than $185 million.
- Research, research, research
Spend time determining the mindsets and behaviors of your customers. Then design your data collection mechanisms and product features accordingly.
Are your customers paralyzed by choice while having fun browsing? Invest in interactive recommendation engines that turn excess inventory into a user identity. This is what it means to understand the value exchange in an active data collection paradigm.
Understanding how your customers engage with your brand can save time, money, and heartache as you roll out active data collection features.
In Jebbit’s case, customers understand that answering playful questions generates data that forms a user profile that delivers targeted product recommendations. They are incentivized to tailor, tweak, and adjust their profile over time, improving their recommendations and offers.
The bottom line: The key to handling the eventual demise of cookies is recognizing the difference between passive and active data collection.
The outgoing system allowed brands to ignore how their customers’ data was collected. The future of data collection requires design thinking, audience research and many rounds of experimentation and refinement.
In following this path, marketers and brands will be on the right track to smoothly wean off cookies come 2024.
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