Going Cookieless - Converting 20% more

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In a world where digital privacy is under a spotlight (and cookie-pocalypse headlines hit us harder than Monday blues), Indian D2C brands need to gear up for the cookieless revolution. For years, cookies have been the secret sauce to effective retargeting, personalised marketing, and user data collection. But now, that secret sauce is expiring—so what’s next?

The demise of third-party cookies has left marketers scrambling for solutions to identify and engage with their audiences. Ad costs are rising, and cookies are crumbling, but there's a light at the end of the tunnel (or should we say funnel 😉): identity resolution - the pragmatic choice, Going Cookieless - Converting 20% more.

Identity resolution is the process of creating a unified profile of a user by linking data from various touchpoints and sources. This process allows businesses to recognise and understand users as they interact with their brand across different channels, even without the use of third-party cookies.

We have the data from 500+ D2C brands in India, but we have also got a new partnership, yet to be revealed for cookieless data - to identify >20% of anonymous website traffic and more 📊📈

 Future of marketing in a post-cookie era… begins now!

In this blog, we’ll dive deep into how Indian D2C eCommerce brands can not just survive but thrive in this cookieless era. We'll break down the technical intricacies of pre-purchase, post-purchase, and post-delivery strategies, showing how going cookieless can actually increase conversions by 20%. Let's dig in, data-first, and see how the cookie really crumbles.

Why go Cookieless?

What share of your site visitors stay anonymous to your systems? That would be >35%.

That should be reason enough to go Cookieless.

The cookieless future isn’t just inevitable; it’s already here. With rising privacy concerns, legislation like GDPR and India's own Personal Data Protection Bill (PDPB), and browsers like Safari and Firefox blocking third-party cookies, brands must adapt. But here’s the kicker—going cookieless doesn’t spell doom for Indian D2C brands. Quite the contrary. Research shows brands that adapt could increase conversions by 20%. How? With enhanced tracking, data accuracy, and more personalised customer journeys, minus the intrusive cookie-following that creeps customers out.

Cookieless is not about losing data; it’s about collecting the right kind of data.

Quick Stat:

According to Google’s study, 69% of Indian consumers are concerned about how their data is collected and used. Cookieless methods offer a privacy-respecting alternative that builds trust—a key factor in retaining customers.

Other factors:

1. Privacy Regulations: India's Personal Data Protection Bill, proposed regulations that will further restrict how personal data is collected and processed.

2. Browser Changes:

• Safari's Intelligent Tracking Prevention (ITP): Limits the lifespan of cookies and blocks cross-site tracking.
• Firefox's Enhanced Tracking Protection (ETP): Automatically blocks third-party cookies and trackers.
• Google Chrome: Plans to phase out third-party cookies by 2024, following its Privacy Sandbox initiative, which aims to create web standards that enhance privacy while enabling targeted advertising.

3. Consumer Awareness: Increased awareness and concern about privacy have led users to prefer websites and services that respect their data privacy. This has pressured companies to adopt more transparent and privacy-compliant practices.

How Cookieless Tracking Works:

To understand how cookieless tracking can drive conversion, let’s look at the technical side. Cookieless tracking leverages alternative methods like server-side tracking, first-party data, and identity resolution to maintain personalised customer experiences without cookies. But instead of having your marketing rely on brittle crumbs, you build a robust data structure that’s more flexible and secure.

Pre-Purchase: Identity Resolution

The first hurdle for D2C brands in India going cookieless is figuring out who’s who. Without cookies tracking users across the web, identity resolution becomes a top priority. Thankfully, advanced methods are stepping up to the plate.

First-Party Data is King

In a cookieless world, first-party data becomes your best friend. This means collecting emails, phone numbers, and other identifiers directly from customers through forms, subscriptions, and rewards programs. Once you have this data, platforms can match it with other pieces of information, like login behaviours, to create a unified customer profile—also known as identity resolution.

According to a study by Twilio, 81% of companies that relied on first-party data saw significant increases in revenue.

Zero-Party Data

Even better than first-party data? Zero-party data. This is information customers willingly provide about their preferences. With interactive content like quizzes, surveys, or product recommendations, Indian D2C brands can capture data without spying on their users’ web history.

Post-Purchase: Server-Side Tracking

Now that you’ve nailed down who your customer is, what about tracking their interactions?

The Technical Side of Server-Side Tracking

Unlike traditional tracking, which relies on client-side cookies, server-side tracking stores data on your brand’s server, not the user’s device. Every time a user interacts with your website, data is sent to your server for storage. This allows for more precise tracking of purchase behaviours and ad performance, especially across multiple channels like mobile apps, websites, and social media platforms.

Here’s where things get technical:

• Accuracy: By capturing all the data server-side, you avoid the issue of ad blockers (which block around 42.7% of ads in India), missed page loads, and other inconsistencies.
• Security: Cookieless tracking also improves security, as customer data is stored on your server and complies better with data regulations.

Real-World Data

Shopify's report on Indian eCommerce brands shows that businesses using server-side tracking saw an increase in click-to-conversion rates by 17% over those relying on cookies. This isn’t magic; it’s maths. When tracking is more accurate, marketing efforts are better optimised.

Data from the Cookieless method

Here’s where the numbers get juicy. Brands shifting to cookieless methods are seeing real-world benefits in terms of data accuracy, user experience, and ultimately, higher conversions.

1. Identity Resolution: Crafting Unified Profiles (Pre-Purchase)

Identity resolution involves creating a unified profile of a user by combining data from various sources, even in the absence of cookies.

With Identity Resolution, brands create a unified profile for each customer based on multiple data points, such as device ID, email, phone number, or even purchase history. This method boosts personalisation without violating privacy. By using deterministic matching (direct identifiers) rather than probabilistic matching (guesswork), your marketing becomes more efficient.

Indian D2C brands adopting cookieless identity resolution techniques have seen customer engagement increase by 24% and campaign open rates improve by 15%.

Techniques:

• Identity Graphs: Combine data from multiple touchpoints to create comprehensive user profiles.
• Persistent Identifiers: Use identifiers such as email addresses or phone numbers collected through voluntary submissions.

Benefits:

• Comprehensive view of customer interactions
• Enhanced ability to personalise experiences
• Increased effectiveness of marketing efforts

2. Server-Side Tracking (Post-Purchase)

Definition: Tracking user interactions directly on the server instead of the client-side (browser).

Techniques:

• Log Analysis: Use server logs to track page views, clicks, and other user interactions.
• Server-Side Tag Managers: Implement tools like Google Tag Manager (server-side) to handle tracking and analytics without relying on client-side cookies.

Benefits:

• Bypasses browser restrictions and ad blockers
• Improved data accuracy
• Enhanced data security

3. Contextual Retargeting: Reaching the Right People

Serve ads based on the context of the user’s current browsing session rather than their past behaviour.

Remember when you’d browse for a pair of sneakers, only to have sneaker ads follow you across the web for weeks? That’s cookie-based retargeting, and it’s dying.

In a cookieless world, contextual retargeting steps in. Instead of tracking a user’s browsing history, ads are placed based on the content of the page they’re currently viewing. This method has been shown to increase relevance and, therefore, engagement.

Example: A customer browsing articles on sustainable fashion can be shown an ad for your eco-friendly products. It’s like serving up exactly what they’re in the mood for—without the awkward stalking.

Indian eCommerce brands using contextual targeting saw a 43% higher click-through rate (CTR) than those relying on traditional cookie-based tracking, according to a 2023 study.

Techniques:

• Behavioural Analysis: Monitor user actions such as clicks, page views, and time spent on site to infer interests and intent.
• Contextual Targeting: Serve ads or content based on the context of the current page rather than past behaviour.

Benefits:

• Relevant user insights without personal data
• Compliance with privacy laws
• Enhanced user experience through relevant content

Example: Display ads for running shoes on sports-related websites that the user visits, even if you don’t know their previous browsing history.

4. Enhance Data Collection Points: Maximising Insights

Optimise your website and digital touchpoints to encourage direct data collection. This can include offering incentives for account creation, implementing loyalty programs, and using interactive content like quizzes and polls

You don’t have to stop at identity resolution and server-side tracking. The cookieless future opens up opportunities to enhance your data collection points.

• Customer Feedback: Use post-purchase surveys and reviews to collect zero-party data. Knowing why a customer chose your brand helps shape future interactions and product development.
• Post-Purchase Interaction: Loyalty programs, product care tips, and even content-based emails (think blog posts or newsletters) provide more opportunities to collect data directly.

Lenskart, a major Indian D2C brand, leveraged feedback loops and post-purchase data collection to tailor follow-up offers. As a result, they saw a 32% rise in repeat purchases within six months.

Post-Delivery: Cookieless Retargeting for Customer Retention

Cookieless tracking isn’t just about acquiring new customers—it plays a crucial role in post-delivery retention. Indian D2C brands often miss out on nurturing customer relationships after delivery. Using methods like contextual retargeting and server-side analytics, brands can build deeper connections and retain customers more effectively.

Contextual Email Retargeting

By analysing customers’ purchase patterns and engagement data, you can send hyper-relevant retargeting emails. For example, if a customer buys a skincare product, your email follow-up could recommend complementary products or a restock reminder in 30 days.

Results?: Indian brands utilising contextual email retargeting reported a 28% increase in repeat sales within a quarter.

What’s the Cost of Not Going Cookieless?

It’s not just about privacy laws and browser restrictions. By not adopting cookieless strategies, you risk lower engagement, inaccurate targeting, and loss of trust. More importantly, you’re leaving money on the table. Research shows that Indian brands clinging to outdated cookie-based methods are facing up to a 15% loss in customer trust.

The blog covers most of the essential aspects of going cookieless, but there are a few additional key points that we’d like to add…

Impact on Ad Networks (Google, Facebook, etc.)

With the shift to cookieless tracking, ad networks like Google and Facebook are rolling out new methods to help brands retain targeting precision. For example, Google’s Privacy Sandbox focuses on ensuring that advertisers can still create relevant ads without relying on third-party cookies. Their solution, Federated Learning of Cohorts (FLoC), groups users into anonymised cohorts based on interests, protecting individual privacy while maintaining ad relevance. Facebook’s Conversion API offers server-side tracking to capture data directly from customer interactions on the website, bypassing the need for browser-based cookies.

Example: Indian D2C fashion brand Bewakoof reported a 20% increase in engagement when they shifted to Facebook’s Conversion API. By focusing on server-side data collection, they were able to track customer behaviour more accurately post-cookieless transition.

Customer Data Platforms (CDPs)

In a cookieless environment, brands need to build a robust Customer Data Platform (CDP) to collect and centralise first-party data from multiple touchpoints—such as website visits, mobile apps, email interactions, and social media. A CDP enables D2C brands to create rich, unified customer profiles. This is essential for personalising experiences and driving retention in the absence of third-party cookies.

Fact: According to a survey by Forrester, businesses using CDPs have experienced a 20% increase in lead conversion rates due to more accurate audience targeting.

Consent Management Platforms (CMPs)

With privacy regulations such as India’s Personal Data Protection Bill (PDPB) coming into play, Consent Management Platforms (CMPs) are critical for ensuring that brands collect and manage customer data ethically. CMPs ensure that brands are compliant by capturing and maintaining records of user consent for data collection. They also build transparency and trust, which is crucial in a cookieless world.

Fact: Indian D2C brands that have implemented CMPs have seen a 15-25% increase in consumer trust and engagement as users feel more secure about how their data is being handled.

Machine Learning for Prediction

In the absence of third-party cookies, machine learning can bridge the gap by providing predictive analytics that leverage first-party data. Machine learning models analyse customer behaviour, past purchase patterns, and real-time interaction data to offer personalised product recommendations, targeting, and retargeting.

Nykaa, a leading Indian beauty retailer, uses machine learning algorithms to personalise customer recommendations based on past browsing and purchasing behaviours. The result? A 28% improvement in conversion rates for their website.

Omnichannel Strategies

Cookieless tracking requires brands to strengthen their omnichannel marketing strategies. Indian D2C brands can no longer rely on third-party data to piece together a fragmented view of the customer journey. Instead, they need to unify customer interactions across platforms like websites, apps, in-store, and social media into a seamless experience, powered by first-party data.

Fact: Omnichannel strategies help brands retain 89% of their customers compared to single-channel marketing efforts, which only retain 33%. By collecting data from every channel and creating unified profiles, D2C brands ensure a consistent, personalised customer journey.

Budget Allocation Shift

With the reduced reliance on cookies, marketing budget strategies will need to shift. D2C brands can no longer pour their entire budget into display ads reliant on cookie tracking. Instead, they should focus on cookieless-friendly strategies, like influencer marketing, content marketing, and email campaigns, which all thrive on first-party data.

Example: Sugar Cosmetics, a fast-growing D2C brand, reallocated 30% of its marketing budget to influencer campaigns and native content. As a result, they saw a 40% increase in organic engagement without any dependence on cookies.

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Conclusion

The cookieless future isn’t just about dodging privacy laws; it’s about better data, more accurate targeting, and smoother customer journeys. With tools like identity resolution, server-side tracking, and contextual retargeting, Indian D2C brands can turn the cookieless challenge into a golden opportunity, converting up to 20% more customers along the way.

So, while cookies might be crumbling, your conversions certainly don’t have to.

TL;DR? Going cookieless might sound like an end, but for Indian D2C brands, it’s actually the start of smarter marketing strategies and higher conversions. Welcome to the next level.