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Retail Business Review | Tuesday, April 19, 2022
First-party marketing has finally come to the forefront, and no other industry is poised to excel in this environment as much as retail.
FREMONT, CA: Retail brands have had to rethink how they approach marketing, with the ad industry phasing out cookies and third-party trackers, data and privacy concerns and regulations taking center stage on a global scale, and a plethora of logistical issues like labor shortages and supply chain backups impacting inventory. Despite these obstacles, retail marketers look forward to the coming year. Because first-party marketing has finally arrived, no other industry is better positioned to thrive in this climate than retail.
For marketers wanting to provide customers with the tailored experiences and communications they've expected without the intrusive third-party tracking that made it feasible in the past, first-party data has become like gold. Because they're so near to the point of sale (POS) — when customers submit information in return for a product — retail businesses, maybe more than any other industry, have access to a wealth of first-party data. The most astute online merchants are well aware of this, so they frequently request that you create an account before making a purchase. After a customer makes a purchase, the shop can learn more about their habits, what they're buying, and what other products they might be interested in, among other things. Retailers can then use this first-party data to generate loyalty, future-proof their marketing approach, and increase sales without relying on the intrusive tracking that plagues other businesses.
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Right now, the digital marketing business is dealing with several difficulties. For example, Google has lately come under fire for its newest plans for a "privacy-safe" cookie replacement, which critics claim is anything but. The stock of Facebook is falling after a less-than-stellar earnings report revealed a reduction in ad spending across all of its platforms. The cost of a CPM is increasing everywhere. As a result, many marketers, particularly in the retail and consumer packaged goods industries, are transferring their budgets to alternative channels.
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