Marketing teams face considerable obstacles when it comes to customer acquisition and attribution, especially given the ever-changing landscape of data privacy regulations.
With reduced visibility around user activity, measuring the impact of marketing dollars on third-party channels has become a challenge for both businesses and marketers.
As a result of these changes, numerous marketers are reconsidering their strategies for attracting potential customers.
The Current Landscape of Customer Data Privacy
Customer data privacy stands at the forefront of challenges and opportunities faced by marketing professionals. Not only are the rules of the game constantly changing, but so are the tools and techniques available to marketers.
This shifting environment, primarily influenced by major tech giants like Google and Apple, has a direct impact on how businesses and marketers approach customer acquisition and attribution.
If you’re grappling with these alterations and seeking clarity on how to best navigate them, this guide offers an authoritative deep dive into the changes in customer data privacy, their implications for e-commerce, and actionable strategies for marketing success.
Understanding Google’s Stance on Consumer Privacy
Google’s decision to phase out third-party cookies by 2023 represents a tectonic shift in the world of online advertising.
These cookies, which are essentially tracking codes on websites, have long been the mainstay of digital marketing. They allow advertisers to track user activities and thereby tailor more relevant advertisements.
With this change, Google aims to replace third-party cookies with Federated Learning of Cohorts (FLoC). Although designed to address privacy concerns by grouping users based on interests rather than individual behaviours, FLoCs cannot truly replicate the precision of third-party cookies.
As a result, marketing professionals must recalibrate their targeting strategies to engage groups rather than individuals.
The Repercussions for E-Commerce Enterprises
A ripple effect of these data privacy modifications is that advertising on third-party platforms will be more challenging and potentially less efficient.
This is because the precision offered by personal targeting will be lost, making it harder to send hyper-relevant messages. Add to this the rising costs of paid advertising, and e-commerce businesses face the challenge of higher customer acquisition costs and potentially diminished return on ad spend.
However, while the scenario is challenging, it’s nothing to be overwhelmed by.
Embracing the Era of Customer-First Data™
With third-party data becoming increasingly restrictive, forward-thinking marketers are pivoting towards first-party and zero-party data.
This shift is not just about regulatory compliance but is driven by a genuine need to put customers first. Such data is gathered directly from customers and is explicitly consented to, unlike the often ambiguous collection methods of third-party data.
In essence, Customer-First Data is all about understanding and respecting customer preferences and using this data to forge stronger, more genuine relationships.
Tips To Master Customer Acquisition in 2023
Reformulate Your Attribution Metrics
One key strategy for adapting to this new era is to rethink how you keep track of attribution. As ROAS becomes harder to track, it’s time to zoom out and look at the big picture. One emerging attribution method is measuring your marketing efficiency ratio (MER), which looks at your total revenue divided by total advertising spend. This can help you get a more holistic view of your marketing efforts and better understand the true impact of your campaigns.
Tailor Your Ad Strategy Accordingly
An important consideration is your product promotion strategy in your ads. With less ability to personalise ad content, ecommerce stores with a limited number of SKUs may focus on conveying the brand story or promoting entire collections instead of particular items. Meanwhile, stores with many SKUs may focus on promoting their top sellers. By tailoring your ad messaging to your specific product offerings, you can still effectively reach your target audience and drive conversions.
Lookalike Audiences: Work With What You Already Have
Leveraging lookalike audiences is another key tactic for adapting to the new landscape. As third-party data becomes obsolete, marketers can use the Customer-First Data they already own to reach new audiences through lookalike audiences. By identifying customers who share similar attributes to your current data base, you can expand your reach and drive more conversions.
Build Your Email Subscribers List with Lead Ads
Lead ads can also be a valuable tool for collecting Customer-First Data and building your email and SMS lists. Instead of relying on paid ads for one-off sales, treat them as an opportunity to gather valuable customer information that you can use to drive future marketing efforts.
It’s All About the Looks: Why Creatives In Your Campaign Matter
Copy, content, promotions, media, and messaging will also play a larger role in the new marketing landscape. With ads needing to appeal to a broader audience, you may need to change your approach to these elements in order to effectively reach and engage your target audience.
Broaden Your Horizons
Finally, consider reallocating your time and budget to other channels such as organic social media, influencer marketing, over-the-top advertising, connected television, out-of-home advertising, public relations, SEO, and SEM. With less reliable attribution models, many marketers are taking this time as an opportunity to experiment on other channels and find new ways to drive growth for their brands.
The world of marketing is constantly evolving, but the most transformative shift yet has been brought about by data privacy regulations.
The phasing out of third-party cookies and the increasing focus on data privacy are more than just obstacles to overcome; they signal a wider change in how businesses and marketers should engage with consumers.
The move towards a transparent, consensual, and customer-centric approach to data underscores the importance of building trust with consumers in today’s digital era.
While customer acquisition strategies and tactics will inevitably adjust and transform in response to these changes, the fundamental principles remain the same: authenticity, relevance, and trustworthiness.
It’s no longer just about reaching customers but about doing so in a way that respects their preferences and offers genuine value in return. As marketers and businesses, it is our responsibility to navigate these changes and use them as opportunities for meaningful engagement and growth.
Ultimately, by prioritising the customer in our strategies, we can guarantee the longevity and success of our marketing efforts regardless of external factors. Stay informed, stay adaptable, and always put the customer first. The future of marketing is not just about data—it’s about the people behind that data.
To unlock the full potential of your own customer data, don’t hesitate to reach out to our Klaviyo Specialists at Connect The Dots.
Our Klaviyo Experts’ support will empower you to elevate your marketing strategy, achieve remarkable sales growth and provide an outstanding customer journey.
Want to learn more about how to leverage your customer data with Klaviyo to boost sales for your business?