The digital marketing landscape is set to change once again. The impending “death of cookies” and the recent launch of Apple’s App Tracking Transparency (ATT) privacy feature are on track to radically change the access marketers and businesses have to third-party consumer data.
Since coming into effect with the roll out of iOS 14.5 just a few weeks ago, the stats show just 11% of global users have approved app tracking when requested on their devices.
Now, more than ever, brands and marketers need to pivot their first-party data acquisition strategy to put relationship building at the centre of everything they do. And that’s where creating a value exchange program proves essential.
What is a value exchange program?
Privacy is a major concern for individuals in 2021. In fact, recent surveys show that 38.9%* of Australians worry about how companies use their personal data. And if customers believe their personal information is being mishandled, 72% of consumers would have no problem taking their money elsewhere.
Clearly, trust has a big role to play in this process. If an individual believes a brand has their best interests at heart, they’re more likely to hand over personal information. But it doesn’t stop there.
For brands to cut through and build long-term trust with consumers, they need to offer something valuable and useful in return. That’s what a value exchange program is all about.
When brands ask for users to provide personal information (such as contact details, browsing behaviour or transaction history), they need to give back something helpful in return. That could be access to premium content, a discount code or even loyalty points.
Why is it an important part of a first-party data acquisition strategy?
The latest changes to first-party data collection mean the power is firmly in consumers hands. They can choose to take their data (and dollars) elsewhere, especially if they feel brands aren’t using their data with integrity.
In short, marketers and brands need to offer a convincing answer to the question of “what’s in it for me?”.
With a value exchange program, brands are able to convince and incentivise consumers to share their personal data. It’s all about proving this exchange is worthwhile, and that they’re receiving fair, helpful and relevant value in return.
How to successfully create a value exchange program
Simply offering a discount code or coupon isn’t enough to create a powerful value exchange program.
Instead, brands and marketers need to consider the customer they’re trying to attract, their needs and pain points and focus on fostering long-term relationships built on trust and transparency.
In practical terms, that means:
Offering a fair and relevant value exchange: that means considering what information, content or incentives will inspire your ideal customer to share their personal data, and spelling out the benefits for them upfront.
Being honest and transparent about data collection: that means explaining exactly what data you’ll be recording, how it will be stored and how it will be used. The more candid you are about this process, the more trust users will have with your brand.
Putting the consumer in control: that means giving users the autonomy to provide and revoke consent to data collection every step of the way, rather than seeing first-party data collection as a box ticking exercise.
First-party data acquisition will need to be a priority for brands who want to succeed in this new digital marketing landscape. However, it’s those brands who effectively use a value exchange program that will be able to offer tailored, personalised digital experiences.
By having the data to deliver the right message to the right person at the right time, brands will be able to cut through and build brand salience to truly move the needle for their business.
If you’re ready to make first-party data the cornerstone of your digital marketing strategy, The Pistol can help you make it happen. Get in touch and join the ranks of the world’s most progressive marketing teams.