Brands are robustly trying to balance data use and privacy, but most fear it will be tougher this year, according to a study by Gartner, Inc.
Of the marketers polled, 60% believe collecting first-party data with an appropriate balance of value and privacy will become more challenging in 2023 although 85% have formal policies in place for managing customer data.
Over one third have dropped an agency or channel partner over the last year due to customer trust or privacy concerns in the past year. And 78% empower customers to take control of their data.
Despite those precautions, 42% are able to send one-to-one messages to customers.
Over 50% of those that strongly prioritize first-party data said they exceeded their customer retention expectations.
At the same time, almost half of firms that manage 11 or more marketing channels have increased their first-party data collection, versus just over a quarter of those with 10 or less.
In addition, 36% of brands with more channels are achieving growth with new experiences and service channels, and 24% are using AI to drive customer engagement.
“Third-party cookie depreciation is causing sources of data to disappear, and many marketers are still scrambling to shore up their first-party data strategy,” says Ant Duffin, senior director analyst in the Gartner Marketing practice.
Duffin adds: “As this data becomes more challenging to collect, marketers must adapt by leveraging new sources of data to fuel personalization and build deep customer relationships.”
Gartner surveyed almost 400 marketing leaders in November and December 2022.