In July, Google made waves when it announced that third-party cookies wouldn’t deprecate just yet. This was met with relief and frustration across the advertising industry. Retailers, already knee-deep in preparing for a cookieless future, have been testing alternatives like Google’s Privacy Sandbox for years.
But even with this delay, the shift towards privacy-first advertising is unstoppable, and the retail brands converting to privacy-first measurement will be at an advantage.
Using first-party data to understand your customers
With the third-party cookie era nearing its end, customer insights will be even harder to obtain. Retail brands can compensate by harnessing first-party contextual data from installed apps, devices, and location data. By gathering insights directly from customers who choose to interact, retail brands can create deeply personalised experiences based on their preferences. All retail brands should be making use of this untapped gold mine to personalise customer engagement through detailed analysis of needs, preferences, and buying behaviours. This information helps brands engage customers across multiple touchpoints, creating a seamless and consistent experience. Brands can use this information to personalise their media and marketing efforts. Helping to strengthen the bond between brand and consumer through responsible, privacy-compliant data practices.
Privacy’s your competitive edge
As privacy regulations become firmer, compliance is necessary to build trust and loyalty. Customers are more likely to stay engaged with brands they trust to handle their data safely. Effective privacy-first advertising depends on transparent communication, clear permissions, and careful data collection practices. When brands explain what data they collect, why they need it, and how their customers will benefit, they foster trust. In a world where information is readily available, being transparent about data collection and emphasising privacy as a core brand value is vital.
For retail brands, compliance with privacy regulations is an opportunity to demonstrate their commitment to protecting customer data. A privacy-focused approach among larger retail brands sets an example across the entire industry, encouraging others to raise the bar on data protection.
Using AI to bring back dormant customers
As the cost of acquiring customers increases, retention and reactivation of dormant customers becomes even more important. First-party data is invaluable for identifying and re-engaging dormant customers in particular. With insights into past behaviour, brands can pinpoint when a customer has disengaged, understand the reasons, and use that information to tailor re-engagement campaigns. If a customer hasn’t interacted within a specific timeframe, brands can send targeted offers, promotions, or personalised messages to capture their interest.
For example, a customer who left items in their cart and didn’t complete their purchase might receive a reminder and a discount code. We all know this encourages them to complete the transaction, but using AI kicks this up another notch. Establishing that window of inactivity ensures that communications are timely and relevant, potentially even pre-empting and avoiding the abandoned cart altogether.
How to be privacy-first
Privacy-first advertising depends on responsible data collection and use. To build customer trust, retail brands should be clear about how they collect data and give customers control over their data when they opt in. Using consent-based data methods, especially on mobile apps, lets customers choose what information they feel comfortable sharing. Some customers care less about privacy, but the onus is still on brands to give them that choice. Collecting only necessary data helps avoid overwhelming customers with too many requests, which may actively harm their experience, and provides them with real value.
Brands should also think about how long they keep the data they collect. First-party data often gives valuable insights for longer than cookies. Focusing on data retention policies and limiting storage times can help brand commitment to privacy and reduce storage costs.
Personalisation is important to retailers, but achieving it in a privacy-first way requires thoughtful approaches like anonymisation. Instead of tracking individual customers, retailers can group customers anonymously to offer personalised recommendations without invading privacy.
Another option is preference-based personalisation, where brands deliver targeted content based on explicit customer preferences and the behaviour of users who opted in. AI tools can help identify patterns in anonymous data, which enhances customer experiences at scale while respecting privacy boundaries.
Retail brands can no longer rely on third-party data alone, nor should they. By embracing first-party data collection and privacy-first advertising, they can build stronger, more trustworthy customer relationships. First-party data provides valuable insights into what customers buy or ignore creating a foundation for re-marketing and brand campaigns. In the long run, brands that balance customer privacy with data-driven decision-making will be better positioned to thrive in a privacy-conscious world. Retailers can’t afford to ignore privacy-first advertising.
Featured image: Will H McMahan / Unsplash