Let’s Break Down the Numbers
The customer data landscape is rapidly changing. Brands need to navigate a challenging path through regulation, customer pushback, and roadblocks erected by the major platforms that have been vital sources of data.
Recent research released by our friends at Cheetah Digital (The Zero-Party Data Playbook, 2022) reinforces the urgent need to re-shape the way brands acquire customer data – and the way customers must be treated in order to voluntarily share data with brands. Since third-party cookie data is crumbling away, and the data giants like Apple, Facebook, and Amazon will no longer share data with their advertisers, it is up to brands to build direct customer relationships. Unfortunately, many of today’s popular tools, like rebate programs, cashback shopping portals, and affiliate platforms actually place distance between marketers and consumers, making it even more difficult to nurture customer relationships.
According to this research, 49% of consumers feel frustrated when they receive offers or content that are irrelevant to them. That means brands must obtain and use customer data to effectively customize their communications and experiences. The paradox, of course, is that while customers want personalization, they also want to protect their privacy. When Apple allowed iPhone users to opt-out of tracking by advertisers, a whopping 96% did (Appleinsider, May 2021).
But the landscape changes when customers receive more personally relevant, valuable offers, communications and experiences, driven by the data they share with brands.
The Need for a Level Playing Field is Greater Than Ever
Cheetah’s research suggests that 55% of customers will trade personal information in order to “feel part of a brand’s community.” Further, 86% say they would share their data in exchange for early or exclusive access – to sales, events, new products, etc. Their research further shows that communications driven by zero-party data (i.e., data proactively shared by customers) often achieves an open rate of 50%.
It seems clear to us that the key to the new customer data landscape is to design an ecosystem that gives consumers what they want, and gives brands what they need.
That’s why we’ve built the new Reach app as a mutually beneficial partnership between customers and brands. Reach transforms the customer relationship into a partnership that empowers both parties. Customers control their data and are compensated for sharing and interacting with brands they choose. Brands get actionable insights unavailable through other sources.
On a level playing field, everybody wins.