You Ask, I Answer: Marketing Consumer Data and Privacy?

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You Ask, I Answer: Marketing Consumer Data and Privacy?

Nicole asks, “What should our strategy be with CPRA and cookies inevitably being taken away from marketers?”

It’s inevitable that consumer data will become more private. Intelligent Tracking Prevention for Safari and Firefox have blocked third party cookies. CPRA – just voted into law – will restrict sharing of data (not just selling). Chrome will be implementing third party cookie blocking by 2022.

What all this means is that we have to own our data and audiences – and as quickly as possible.

How? By asking consumers for their data directly, rather than relying on third parties of any kind.

You Ask, I Answer: Marketing Consumer Data and Privacy?

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Machine-Generated Transcript

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In today’s episode, Nicole asks, What should our strategy be with cpra and cookies inevitably being taken away from marketers cpra is California’s new legislation was just passed into law by a vote in the most recent 2020 election, it will supersede the existing ccpa law, which has been in effect will supersede it in 2023.

It is inevitable that consumer data will become more private and less accessible to marketers.

We’ve been on this march for four or five years now.

And between changes in browser architectures to themselves legislation, and the absolute dominance of ad blocking technology, it’s no surprise that the data that marketers used to be able to get access to is diminishing.

If we look at things like intelligent tracking, prevention and enhanced privacy protection in Safari and Firefox, respectively, they block third party cookies and cross site tracking out of the box.

It’s not allowed.

Now that takes out about 25 30% of your marketing data from third parties.

Google Chrome will be implementing third party cookie blocking by default in 2022.

So what all this means, in short, is, as marketers we cannot rely on third party services to provide us usable data.

Right? There’s just no way to do that.

What we need to do instead is we need to be focusing very, very heavily on first party data.

And, quite frankly, we maybe need to focus on understanding the value of the data itself, not for us, but to the consumer.

When we talk about first party data, we’re talking about information that consumers give to us directly, what is it that they are willing to volunteer? And what are we willing to trade to them in exchange? This is a big was a big open question for a lot of marketers, because the reality is most of the things that marketers have to trade are not particularly valuable, right? What do we have to trade to a consumer in exchange for their data, some white papers, free downloads, maybe some credits or something if you know, depending on the kind of business we have.

And we need to be thinking much more from a marketing perspective about the value of data, getting a consumer to give us their data, is now going to be a sale in and of itself.

And think about that, from that perspective getting a consumer to give us their data is a sale unto itself.

So a sale means that there is a transaction, right? There’s an exchange of value, what do we have to give that is worth enough that a consumer would say yes, I will buy that I will buy whatever you’re offering a value.

And the collateral I’m putting up is my data.

most marketers don’t have anything to give, right? You read your average company newsletter that’s out there, what’s in there, it’s a lot of chest beating and puffery.

That, frankly, is uninteresting even without, you know, any personalization data, you read a white paper, and it’s a more often than not a very self centered piece of content intended to persuade you to buy as opposed to being of legitimate value to you.

You attend the conference session, and an unpleasant percentage of the time is a sales pitch.

So we’re already not providing value to customers, to consumers, we’re already trying to sell them something without giving them something in the first place.

And now, most marketers will be in a situation where they’re not going to earn the right to that consumer data, they’re not going to earn the sale.

So what do we have to give? What do we have to offer, and this is going to be the foundation of your first party data strategy.

Your first party data strategy looks like this.

It looks like an email list that’s robust.

It looks like private community of some kind that is not a major social network, like discord or slack.

It looks like a list of mobile numbers that you can text.

It’s basically a form of contact where you can reach out to the consumer directory directly you have earned the right to do so.

And so we have to ask ourselves what value are we providing? What is? What are our options to increase the value of the data that we have? There are certainly techniques like progressive profiling, for example, where you can ask for a minimal amount of information at registration.

And then over time, ask for, you know, one or two new pieces of information, with each new login each new launch each new download, so that you eventually build that profile.

But that’s kind of like taking a large purchase and breaking it up over a bunch of payments, right? You still have to earn that every single time.

When we look at the content we’re providing, can we create enough value that somebody wants it to begin with? And then can we upsell for additional data? A number of years ago, I used to do a thing called premium content in my newsletter in exchange for people’s information.

Turns out, I stopped doing that because I wasn’t using the additional information, it wasn’t of any value.

And so I stopped doing it, because they really was no reason to do that.

But most marketing automation systems will support that it will support dynamic content where you can say, only display this block if you have these pieces of information in the database.

So you can do a premium content model.

Instead of asking for money, you’re asking for the data.

But again, it’s got to be valuable.

It’s got to be worth trading for.

So the bigger question is, what could you be doing to offer value in the content you provide that is worth paying for? Right? That was Jay Bear’s thesis in his book utility A number of years ago? Is your content good enough that someone would pay you for it? Well, now, we are at that situation where consumers will pay with their data in exchange for valuable content.

Again, looking around at what comes in inboxes, and in the mail and at trade shows, the answer is no, it’s not worth paying for it.

So that’s the mission for marketers in the next two years, right? Because Chrome is still the largest browser, it’s 70% of the market, give or take.

And when it implements its own third party cookie blocking, it will be a substantial disadvantage for many, many marketers who are relying on that data for things like cross channel attribution stuff, not from websites and website data but from ad networks.

So what will you do over the next call the next year, what will you do over the next year to make your content so valuable, that someone would pay for it with their data? Right? That may mean original research on a regular and frequent basis.

That may mean curated content that has a point of view that nobody else else can get from anywhere else.

That may mean subject matter experts offering legitimate value without trying to sell you something that may mean unique stuff that isn’t available.

If you’re For example, I have a mobile app to be discount codes.

For in app purchases, or freebies or contests, giveaways.

Whatever it is, you have to have something that’s worth paying for with somebody’s data.

That’s the biggest takeaway, you have to treat consumer data as a sale, and be collecting it on a first party basis voluntarily from consumers.

Because if consumer gives you the data, voluntarily having read all the disclosures, they then cannot take any legal action if you use that data, now, they can revoke consent at any time.

And you have to make it easy for them to do so.

But again, the idea is if continuing to provide value, they should continue to provide consent.

That’s pretty straightforward.

So good questions are going to be a question that you might hear a lot of in the next two years.

So make sure that you’re staying on top of it and working on building your content value.

Guy follow up questions, leave them in the comments box below.

Subscribe to the YouTube channel in the newsletter, I’ll talk to you soon.

Take care.

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