CPG and retail businesses lack the means to enhance first-party data accuracy and consistency in post-cookie world, while many marketers are too concerned with privacy, confusing data protection laws and customer consent to properly use first party data.
So finds two separate studies published this week that show that, while first party data may well underpin the retail media and wider digital marketing opportunity, there are still many stumbling blocks to making it work in practice.
First off, a survey of 100 senior marketers in the UK’s consumer packaged goods (CPG) and retail sectors reveals that inaccurate, outdated and siloed data are major obstacles to delivering tailored customer experiences. Conducted by global digital transformation firm Apply Digital, the research highlights that nearly a third of businesses are struggling to fully capitalise on first-party data as they shift CX strategies in a post-cookie era.
Senior marketers fear that Google’s decision to move away from third-party cookies, which will be accelerated by a single opt-in experience on Chrome this year, will disrupt their marketing performance. Notably, 29% worry this will increase customer acquisition costs and over a quarter (27%) are concerned they could lose market share to competitors.
Although 99% of businesses are still using third-party tracking cookies to automatically buy ads online, 94% of marketers have still either completed or begun the necessary transition towards first-party data. However, 13% are unsure they can craft effective engagement and retention strategies using only first-party data.
Underpinning the concerns are issues with how data is used. Inaccurate and inconsistent data were highlighted as the most significant barriers for nearly a third of senior marketers (34% and 33%, respectively). Outdated and siloed data were also reported as major concerns by 32% and 27% of respondents, respectively, demonstrating the need for improved data skills, tools and management.
A fifth (22%) of respondents reported a lack of tools to properly analyse their data, while a quarter (25%) identified a shortage of in-house or external expertise to effectively process and utilise it. More than one in ten marketers (14%) said CRM systems were not yet fully equipped to capitalise on first-party data strategies.
Dom Selvon, chief technology officer at Apply Digital, says: “Although most senior marketers are striving to adopt first-party data strategies and adjust to life beyond cookies, only eight percent feel they face no obstacles in building successful strategies around first-party data.
“That’s problematic given customers want brands to understand their needs, demonstrate value, and engage meaningfully. This means businesses must become data-smart to meet evolving expectations. By mastering data management, marketers can forge deeper, lasting connections, and this makes the ability to effectively leverage first-party data critical to the future of customer relationships.”
Privacy and consent fears
On top of this, a separate study in the fifth edition of the Braze Customer Engagement Review (CER) conducted in conjunction with Wakefield Research, finds that data privacy concerns have impacted marketers’ plans for more advanced personalisation efforts, with key worries including customer consent (45%), regulatory and compliance issues (39%), and internal team concerns (38%).
The Braze-Wakefield research shows that industry leaders are unable to decipher what is and isn’t ethical use of customer data. Google’s introduction of technology such as fingerprinting and IP address collection, for example, are methods that enable brands to impactfully target consumers. However, it’s argued to be a blow to privacy with it being harder for users to control what data is collected about them.
With the rush to adopt AI tools within marketing teams, more than a third (37%) are using AI-informed data collection tools to identify patterns and combinations in data sets to help with personalisation. Marketers play a crucial role in fostering consumer trust through transparency of how data is being collected and used, and the consumer benefits.
Building emotional connections
Customer retention is also being impacted the Braze study goes on to show, with nine out of 10 (92%) businesses questioned allocating between 26–75% of marketing budgets towards this effort, a similar figure to 2024.
However, marketers also admit they are finding it challenging to connect with consumers to achieve this goal. With 95% struggling to craft emotionally resonant messaging to forge those connections, UK marketers are the most concerned in Europe.
To address this, the top tactics being deployed include using humour, pop culture and social causes to connect emotionally (38%), AI-driven tone adjustments for each recipient (37%), and personalised messaging based on customer data and channel preferences (36%). This is where the collection of first-party data and consumer consent to its use can help brands maximise the information they collect to create more intentional customer engagement.
“Whilst marketers are increasingly leveraging AI, they face a dilemma. Consumers want unique personalised experiences, but it’s clear from the research that marketers are concerned about misusing personal data without consent,” says James Manderson, SVP, Customer Success, at Braze.
“The key to success lies in balancing personalisation with transparency. While customers desire relevant and emotionally resonant experiences, they also expect control over their data. By prioritising first-party data strategies and leveraging AI transparently to show customer benefit, brands can foster deeper trust and long-term connections. Marketers can also play a crucial role in fostering consumer trust and confidence by being clear about how data is collected and used, as well as how it will ultimately benefit the consumer.”
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