Many brands are collecting their own customer data to fill the void left by third-party cookies. In some ways, this is an upgrade. Third-party data is getting more expensive, often only available for a limited period of time, and the accuracy is questionable at best. Some studies say businesses overestimate ad effectiveness upwards of 4,000%.
In contrast, businesses have total control over their own customer data. They know exactly when, how, and why the data was collected, and it belongs to the business forever. And because this data comes from consumers who directly interact with the brand, the information is more likely to be relevant. What’s more, customers want an integrated, transparent, human experience, which third-party cookies are not cut out to give.
Some good news for customer acquisition out of the disruption is that more people are open to trying new brands. It didn’t look like consumers were willing to buy from new brands in 2020, when 38% of customers increased their spending with an individual retailer. But once the strictest lockdowns eased up and more options hit the market, 41% of consumers switched brands.
Whether new stores, new products, or new buying methods, 75% of consumers tried something different during the pandemic. And now, thanks to inflation, consumers are on the hunt for the best value, making them even more open to change. Two out of three shoppers abandon brands for better deals, and 58% switch in search of higher quality products.
But there’s still one big question first-party data can’t answer alone: How do brands find and attract these new customers? The answer that’s emerging for forward-thinking brands is collaboration.