Our Private World: What are B2b and B2c Businesses Allowed to Track & Advertize
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Our Private World: What are B2b and B2c Businesses Allowed to Track & Advertize

Joshua Rockoff, VP, E-Commerce + Product, Balfour
Joshua Rockoff, VP, E-Commerce + Product, Balfour

Joshua Rockoff, VP, E-Commerce + Product, Balfour

Today there is a tussle between privacy and advertising. As technology improved, so did concerns regarding data privacy. Advertising is not new; walk the streets of ancient Pompeii and one will see advertisements on walls and floors. The medium has changed, alongside the technology by which customers access.

Consider these key statistics. Today there are 137 countries and three US states with legislation securing the protection of private data the UN Conference on Trade & Development notes. Flurry Metrics in May 2021 identified 96 percent of iPhone users opted out of mobile application tracking in Apple’s iOS 14.5 update. And Google announced it would phase out third-party cookies in late 2023 in its’ Chrome browser. Last, Congress released the first draft of the bipartisan Federal Privacy Law in early June 2022.

Understanding the difference between first party and third party cookie types is important.

First Party Cookie (Allowed)

• Definition: When someone supplies Personal Identifiable Information (PII)

directly. Email address and mobile phone number are examples of PII.

• Entry methods: a subscription form, in a checkout, creating a profile, etc. This data is taken directly from your site into a tool like an Email Service Provider (ESP) or Customer Data Platform (CDP) where it can track customers for the end of time (or until they reset their cookies).

• Experience: The customer experience here is great. The customer’s perspective is they find a site they love, subscribe to it, and receive emails and/or texts based on subscription type.

Third Party Cookie (Not Allowed)

• Definition: Ways to track visitors when they DO NOT supply PII

• Entry method: dropping an ID on each site a user goes to, following the user around through their web activity, and recording it without their knowledge

• Experience: Awkward! They did not give you any information about themselves, and it's likely an uncomfortable surprise when you reach out.

"Local storage enables marketers a greater opportunity for personalized interactions in the near and long-term"

Knowing identity enables marketers to build one-to-one scale with the third-party cookie deprecation. To do this requires leveraging local storage. It offers the space to store all previous views, carts, and checkouts. This technology is not new; it is available in all modern web browsers. Here is how it works:

1. Create an ID for a customer when they come onto the site, saving that to local storage, and sending it to your email application (Klaviyo / Wunderkind), Operations (Webeyez), Business Intelligence (Glew), etc.

2. Save all of the data about what a customer does on the site in local storage and send it along to your “system”. This enables tailored forms, popup windows, and personalized onsite content.

3. Merge all data from the anonymous profile to a new profile once an email address or phone number is found from the browser.

To assist in creating a single customer profile, ensure the disparate profiles are merged into one based on email addresses, phone numbers, physical address, device IDs, etc.

Local storage enables marketers a greater opportunity for personalized interactions in the near and long-term. For one, this affords a significant increase for building a solid CRM database. The specificity at the customer level enables marketers to create segments that are more reflective of what these customers are interested in, rather than what they have converted on. Second, the availability in usable data allows not only for more granular segmentation based on user behavior, but affords marketers the ability to scale their marketing efforts (e.g., for direct mail, email or online advertising). Last, the first two opens up additional avenues. Examples include website personalization based on previous browse behavior, on-going sales, or interest segments.

There are several key performance indicators (KPIs) to measure revenue success. Below are several examples:

1. Conversions = Number of recipients who have clicked and converted (attribution window varies by channel)

2. Conversion Rate = Of those who clicked, what percentage of recipients purchased. Mathematically, # of conversions /# of total clicks, or of those who received a targeted message, what percentage of recipients purchased. Mathematically, # of conversions /# of total emails sent.

3. Click Revenue = Revenue generated by recipients who have clicked and converted (attribution window varies by channel)

Privacy remains a hot button issue. But all is not lost for marketers. In fact, the recent legislation offers a return to old school tactics. Both customers and businesses stand to gain.

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