A study shows how the majority of businesses are not equipped to handle a world void of cookies.
About 81% – an overwhelming majority – of businesses use third-party data. Also, more than 54% of companies reported they aren’t fully prepared for the cookieless world.
Both Mozilla’s Firefox and Apple’s Safari currently block cookies from third parties; Google Chrome is also expected to follow them by 2023.
About the latest report
In the third “State Of Customer Engagement Report,” Twilio announced the findings of 4500 customers across twelve countries and 3,450 business managers and leaders.
Cookie deprecation will cause more difficulty and hardship for businesses relying heavily on these cookies to determine and monitor site visitors. As per the report, this move will make collecting first-party data vital for brand survival.
Various businesses and their leaders identify with this. More than 94% of business managers say using and owning consumer data will remain their primary growth driver in the following years.
In addition, the study found that there’s a massive division between what consumers and companies believe makes an excellent personalized experience.
For example, about 75% of businesses believe they provide exceptional customized experiences; however, about 52% of customers believe companies offer average, poor, or bad personalization experience.
“Personalization is actually getting harder to deliver, with high customer expectations, changing technologies, and the diminishing value of third-party cookies. We’ve seen five fundamentals to overcoming these challenges: embrace digital, personalize every interaction, shift to first-party data, close the trust gap, and avoid engagement fatigue by increasing the quality of your interactions,” said Glenn Weinstein, chief customer officer at Twilio.
The report’s findings regarding digital engagement
All in all, the report discovered that capital investment in personalization and digital engagement technologies has a significant, positive, measurable effect on customer trust, revenues, and retention.
Businesses that invested in “Digital engagement” have witnessed a 70% revenue increase in the past few years.
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