Can we call Cookies as customer experience transformation?

Cookies, Compliance and Customer Data, is where the businesses can prepare for a privacy-first future. The State of Customer Engagement Report 2022 from Twilio reveals that digital customer engagement has made a significant impact — increasing revenue by 70% on average for companies that invested in it. Unsurprisingly, these same companies expect to almost double their investment by 2025. However, the fast pace of change also means that businesses will need to quickly adapt. Personalization is now essential for customer retention and data protection has taken on greater importance amongst consumers. And consumers’ current views on these topics diverge from what companies believe in certain places.

Firefox and Safari have already blocked access to third-party cookies, and Google Chrome will do the same in 2023. In the coming “cookieless” world, creating personalized experiences will require embracing first-party data. Going forward, embracing first-party data is not just the right thing to do, it’s no longer a choice. Third-party cookies offer a shortcut to personalization – one that marketers have been taking for decades. 78% of companies today are reliant on cookies, even though they’ll be non-existent by the end of 2023.

What’s more concerning is Customers aren’t even impressed by cookie-powered personalization. Globally, 75% of companies think they're providing good or excellent personalized experiences, but that trend is much lower in APJ (66%) and more than half of customers disagree. Consumers today are demanding greater data privacy and transparency than brands realise.

Cookies are files created by websites you visit. They claim that they make your online experience easier by saving browsing information. With cookies, sites can keep you signed in, remember your site preferences, and give you locally relevant content.

The fact is they are developing their database to sell further. Anyone can buy cookies and IP addresses, which are available in the open market, that is how the new companies and start-ups are able to gain the market share and reach the customers and prospective customers faster. Cookies (also referred to as HTTP cookies or browser cookies) are small text files stored in a web user's browser directory or data folder. Ecommerce websites place cookies on visitors' browsers to retain login credentials, identify customers, and provide a customized shopping experience

There are two types of cookies:

i.e First-party cookies are created by the site you visit. The site is shown in the address bar and Third-party cookies are created by other sites. These sites own some of the content, like ads or images, that you see on the webpage you visit. What is Important is If you don't allow sites to save cookies, most sites that require you to sign in won't work.

As the user browses the website, each new page the user visits queries the browser, looking for the cookie. If the cookie's URL matches the website's URL, the website retrieves the user information from its server by utilizing the unique generated number. In this way, the website adjusts the user's experience to reflect the browsing history. You may be surprised What cookies do, when you browse any website. Stay tuned to VARINDIA to get another crucial set of information. 

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA