Your post-cookie playbook: How CDPs and CRMs can help you thrive

A world without cookies feels a little less sweet.

This is the sentiment the marketing community has been sharing since January when Google officially began phasing out third-party cookies.

However, fear not as with new challenges come new opportunities… to get creative.

Marketers now have the perfect excuse to rethink their tracking and targeting strategies and connect with their customers in more meaningful (and consensual) ways.

How? By harnessing the power of alternative systems like Customer Data Platforms (CDPs) and Customer Relationship Management systems (CRMs).

Let’s take a look at how you can use these tools to thrive in a cookie-less world.

Cookie deprecation: How did we get here?

When Google, Apple and Mozilla announced their intention to phase out third-party cookies, it sent shockwaves through the marketing community.

According to Forrester Research, 51% of global marketers surveyed did not believe Google would follow through, but follow through they have.

On 4 January 2024, Google began rolling out Tracking Protection – a new functionality that automatically limits third-party cookies – for 1% of Chrome users as part of its testing phase. This was just the starting point with a lot more change still on the horizon.

At this stage plans are in motion to increase this to 100% of Chrome clients by early 2025. While this timeline has shifted out due to commitments Google has made to a UK regulatory Authority, it is still very much going ahead. Therefore, it is essential that marketers adapt their tracking strategies to stay ahead of the curve.

Also of importance in providing the context of the environment that marketers need to navigate are the forthcoming amendments to Australia’s Privacy Act. These are imminent and marketers need to start preparing for the changes now to stay on the front foot and ensure they are compliant.  

“While the exact form of the Privacy Act reforms is yet to be confirmed, we know enough to start preparing our businesses. We know that the definition of personal data is expanding to include any things that we have been unclear of in the past, we also know that there are other new definitions (pertinent to marketing) being introduced and that there will be a need for businesses to be far more transparent around their data practices. We will also see Australia introduce a world-first – an overarching test of Fair and Reasonable. This immediately shifts us from a solely consent-based model of data collection.

Taking into consideration, just these foundational reforms is enough to see that marketers need to get across the data they currently hold, and the data they may need to obtain in the future, if they want to ensure that their business is compliant and that they are providing services in a way that their customers would expect.” – Sarla Fernando, Head of Regulatory & Advocacy at ADMA

So if changes to data privacy laws and platform offerings are changing and preventing us from using traditional methods to monitor consumer behaviour across websites, we must rewrite the manual.

The key to success in a world without third-party cookies?  Zeroing in on first-party data.

Where third-party data relies on information collected from external sources, first-party data is collected directly from customers through a company’s own interactions with them. It’s more accurate, reliable and – crucially – privacy-friendly (as long as the company gets the correct consent).

And until now, you probably haven’t valued it as highly as you should have. As Andrea Martens, CEO of ADMA shares:

‘As the sun starts to set on third-party cookies, first-party data will become doubly valuable. With robust (and privacy compliant) data collection systems in place, marketers can use the information they collect to create a better experience for their customers. This, in turn, will help them build trust with their audience and stay competitive in today’s market.’ 

Unifying data in a fragmented world

So, now that you have your privacy obligations front of mind - where to begin?

Step one is to get on top of your customer data.

Customer information today is scattered across countless platforms and channels, making it difficult to understand and engage with effectively. This challenge will only grow as third-party cookies phase out.

Enter Customer Data Platforms (CDPs): Your essential tool for collecting, organising and analysing customer data. A CDP pulls customer data from an array of channels or systems in real-time to build a customer profile for more personalised customer experiences.

By aggregating information from diverse sources (think websites, mobile apps, social media platforms and so on), CDPs allow you to create a comprehensive profile of each customer's behaviours, interactions and preferences.

CDPs store varying types of data, including:

• Identity data such as name, email and phone number

• Demographic data such as age, gender, marital status and occupation

• Behavioural data such as website visits, search history and email opens

• Transactional data such as past purchases, payment methods and order history

• Preference data such as preferred products, content topics and communication channels

• Engagement data based on previous interactions with promotions and communications

With a robust CDP in place, you can use this information to create more targeted, personalised campaigns.

The new-found importance of nurturing customer relationships

The second key ingredient to your post-cookie success? Good relationship management.

This is where Customer Relationship Management systems (CRMs) come in.

While CDPs help you analyse data to understand customer behaviour, CRMs help you nurture individual relationships for personalised engagement and long-term loyalty.

‘Deploying a 1st party data strategy is essential for delivering exceptional CX by providing accurate, reliable, and contextual insights that help you understand and cater to your customers' needs and preferences’ – Paul McCrory, Commercial Advisor ADMA

A digital address book of sorts, a CRM acts as a centralised database that holds valuable information about current and potential customers, including:

• Contact information such as name, email and phone number

• Communication history including emails, phone calls and live chats that have taken place

• Sales pipeline data such as sales opportunities, lead stages and expected close dates

• Activity and task management including tasks and follow-ups relating to customers

• Marketing interactions including email responses and event registrations

• Customer service interactions including records of enquiries, follow-ups and resolutions  

A good CRM will help you stay on top of your relationships, which can work wonders for brand salience and customer retention.

‘It’s worth noting though that with the imminent changes to Australia’s Privacy Act, it would be remiss to not consider privacy here. Using a CRM or CDP system usually means using a cloud-based service which is supplied by an external provider. That is, the service is "outsourced". This means having to consider the issue of data security in the outsource agreement and making sure that you meet the Australian Privacy Principles associated with data security.’ – Rob Nicholls, Regulatory and Policy Manager ADMA

Four ways to leverage CDPs and CRMs for marketing success

Together, these two systems make for a comprehensive survival kit that will help you navigate the cookie-less terrain. Here’s how:

Gain deeper insights into customer behaviour

The wealth of data stored in both CDPs and CRMs will help you identify broad patterns and trends in your customers’ behaviours.

Once you’ve mapped these, you can build entire marketing strategies around them.

Data-driven strategies have major payoffs. According to Forbes (2023), data-driven companies are:

·       23 times more likely to top their competitors in customer acquisition

·       About 19 times more likely to stay profitable

·       Nearly 7 times more likely to retain customers

1.     Create personalised campaigns with tailored messaging

CDPs and CRMs allow you to segment your customers based on attributes, behaviours or interests. This means you can tailor your messaging when speaking to specific groups to create a more personalised experience.

Whether it be products you know they’ll like or information you know they’ll want to read, showing your customers content that’s relevant to them is sure to enhance engagement and drive conversions.

2.     Measure your performance to ensure continued growth

CDPs and CRMs offer robust analytics and reporting capabilities.

With the intricate details of each customer’s engagement at your fingertips, you’ll be able to accurately track the success of your campaigns and adjust them accordingly. (Did someone say data-driven insights?)

This will maximise your ROI, ensuring you’re always getting bang for your advertising buck.

3.     Orchestrate a seamless customer journey

CDPs and CRMs help you track consumer touchpoints across all your channels and platforms. This makes them essential tools when it comes to customer journey mapping.

By visualising the steps customers take when engaging with your brand, you can ensure the process is as seamless as possible.

This also helps your day-to-day customer interactions.

Everyone remembers when a customer service team deals with an enquiry efficiently and effectively – and the data recorded in your CRM will allow you to do just that. This will, in turn, drive brand loyalty and ensure customers become advocates.

It’s a win win win … and win!

Want to create a compelling customer experience for your audience in a cookie-free world? We’ve got a course for that.