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Data deprecation refers to how data loses its value and becomes less useful over time. In this article, learn actionable tactics on how to navigate the evolving privacy regulations and technology that is changing data collection practices.
The generational shift caused by data deprecation has been a harsh wake-up call for advertisers, marketers, and entrepreneurs of direct-to-customers (D2C) and e-commerce companies.
It has compelled them to explore innovative methods for collecting and utilizing customer data. They can no longer freely sift through customers’ personal information, browsing patterns, purchase history, and social media activity without restrictions.
Data deprecation involves removing or limiting access to the deprecated data. Are you prepared to handle the challenges posed by data deprecation? How can you navigate these challenges without any additional cost to your business? Let’s find out in this blog.
Data deprecation refers to how data loses its value and becomes less useful over time. Coined by Forrester, data deprecation is the restriction of tracking and access to consumer data due to the loss of cookies, strengthening privacy regulations, walled gardens, and consumer privacy expectations. Data deprecation has become a harsh reality check for data-driven marketing.
For example, e-commerce businesses may struggle with less effective targeted advertising and personalized recommendations due to data deprecation, like a clothing retailer losing the ability to recommend specific items based on past browsing behavior.
Let’s examine more closely the four factors causing data deprecation and prompting advertisers and marketers to rely less on conventional data collection techniques.
Consumers want to be in control of the personal information they share with companies, be able to browse the web in privacy, and want more control over what companies can and cannot do with their personal information, and how their data is used.
75% of consumers would not make a purchase from a company, including their preferred retailers, if they did not trust them with their data. Companies may also face damage to their brand trust because of negative privacy experiences and a data breach.
Similarly, consumers’ concerns are also highlighted in the KPMG survey:
Governments have enforced stringent laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) to ensure that user data is safe and protected. These laws put the customer in the driver’s seat, and puts the onus on businesses and organizations to abide by them.
While certain cookies are essential for functions such as keeping visitor sessions active, third-party cookies have been contentious due to their capacity to monitor users across the internet without their awareness or consent. These worries about third-party cookies have led to new legislation and prompted major tech companies like Apple, and Mozilla to move away from using them in their browsers.
On July 22, 2024, Google revealed that it will not phase out third-party cookies in Chrome as previously planned. Instead, the company will introduce a new feature that allows users to make informed decisions about their web browsing and adjust their preferences at any time. Despite this shift in policy, the effectiveness and scope of third-party cookies have been steadily declining, and if users are given the choice to opt out of tracking, this could further contribute to the technology becoming obsolete.
Technology companies are employing walled gardens to gain control over all content and applications on their platforms. The “walled gardens” established by Google, Facebook, Amazon, and large retailers such as Target are impeding cross-channel planning, buying, and optimization by making it more difficult to extract data for use in other channels.
How do these four horsemen of data deprecation impact your marketing strategies, and what are the challenges that your business should gear up for?
While data deprecation brings its challenges and roadblocks, it also offers brands the golden opportunity to embrace diverse tactics to ethically obtain user data with explicit consent.
Here are three ways that you can prepare your business to make a paradigm shift by seamlessly orchestrating these data collection journeys and also leveraging them in real-time to tailor personalized experiences that resonate with users.
Let’s take a deeper look into each of the above three solutions.
The role of zero-party data is growing in significance as the internet becomes more privacy-centric by the day. Forbes has dubbed zero-party data ‘the new oil’ due to its enormous potential for new forms of personalization. The term ‘zero-party data’ was originally introduced and defined by Forrester as the “data that a customer intentionally and proactively shares with a brand, which can include preference and interests, purchase intentions, personal context, and how the individual wants the brand to recognize them.”
Employ the following techniques to engage with customers directly and persuade them to willingly disclose personal data:
First-party data, also known as 1P data, refers to information collected directly from individuals who interact with your business. It includes data such as user preferences, purchase history, and interactions with your businesses’ digital properties.
Data in a silo is not useful, but using data across multiple systems has security implications. So then, how do you share data between multiple systems while maintaining regulatory compliance and security and privacy standards?
The answer lies in using data veils! ‘Data veils’ are a layer of security between data origination systems and data processing systems. These veils have varying thickness and porosity that are a function of the organization’s use cases. This enables brands to allow access to only those parts of the customer identity graph that are relevant to the use cases and engagement tactics.
As data deprecation becomes a reality, novel solutions of data collection and storage will become necessary. Does this mean brands will now need to invest in additional technologies? Not necessarily.
While many point solutions address zero-party data needs, brands should explore scaling their existing tech investments with their partners.
In fact, businesses can leverage the existing infra of Customer Data Platform (CDP), at no additional cost to collect zero-party data by orchestrating surveys, games contests from existing infra and store that information.
In the era of data deprecation, CleverTap is empowering its customers to navigate data deprecation with its ‘all-in-one’ customer engagement platform while also unlocking limitless customer lifetime value.
Customer data has long been easily accessible to advertisers and marketers without any restrictions. However, in the era of data deprecation, businesses have to adapt to new creative ways to understand and engage with consumers. Access to both first-party and zero-party data is essential as a safeguard against the adverse effects of data deprecation and as a means of achieving ongoing growth. Any queries on how to navigate the complex environment of data deprecation, reach out to CleverTap.
“Deprecated” means a feature or technology is outdated, no longer recommended, and likely to be phased out or replaced.
“Deprecated” indicates something is outdated and being phased out, while “depreciated” refers to a decrease in value over time, usually in financial contexts.
A data deprecation policy outlines how and when a company will phase out the use of certain data types or technologies, often due to changes in regulations or industry standards. It ensures that outdated or unsupported data practices are retired systematically and responsibly.
First-party data is crucial because it comes directly from a company’s own customers, providing accurate and relevant insights for personalized marketing and decision-making. It enhances trust and engagement by reflecting direct interactions and relationships.
An example of deprecation is the phasing out of Adobe Flash Player, which was gradually discontinued due to security vulnerabilities and the rise of more modern technologies. Another example is older versions of programming languages or APIs that are no longer recommended for use in favor of newer, more efficient versions.
Data deprecation can impact marketing analytics and reporting accuracy by limiting the availability of historical or third-party data, leading to gaps in insights and potentially less precise performance evaluations. It forces marketers to rely more on first-party data and adapt their strategies to maintain accuracy.
