Cookieless personalization in a privacy-first era

Cookieless personalization refers to the delivery of personalized content, product recommendations, and experiences to specific users without relying on third-party cookies, which are subject to increasing privacy regulations and browser restrictions.

Instead of tracking behavior through text files placed on a user’s device, cookieless personalization finds a workaround, drawing on alternative sources of first-party data to paint a picture of customer needs and preferences.

There are three main ways to implement cookieless personalization:

• A site can present generic recommendations based on global trends and patterns across the entire customer base and/or showcase the newest or most popular products.
• The business can use machine learning algorithms to suggest behavioral recommendations based on observed activity on a given web page (first-party data).
• Or the brand can apply contextual personalization from referral data and location factors, such as weather and current events.

Sitecore’s personalization platform supports these methods with an industry-leading product that combines A/B testing, real-time recommendations, data-driven insights, and connected user experiences that create meaningful interactions with lightning-fast performance.

Cookieless personalization offers marketers and brands a privacy-compliant, future-proof strategy for delivering relevant, individualized experiences while adapting to changing regulatory landscapes and customer expectations. By embracing this approach, marketers can continue to enhance the customer experience, make better use of first-party data, and maintain a competitive advantage in the evolving digital ecosystem. Let’s consider some of these benefits in detail:

• Comply with privacy regulations: With the increasing emphasis on user privacy and data protection regulations like GDPR and CCPA, companies need to find other ways to deliver relevant experiences without violating privacy rights. Cookieless personalization enables brands to comply with global regulations by eliminating or reducing reliance on third-party cookies for tracking behavior across sites and other digital properties.
• Enhance customer experience: Personalized experiences are integral to engaging visitors and fostering brand loyalty. By leveraging cookieless personalization techniques, marketers can still deliver tailored content and recommendations based on user preferences, browsing history, and contextual signals. This leads to a seamless user experience that drives higher engagement and conversion rates.
• Maximize use of first-party data: Cookieless personalization encourages marketers to focus on their sources of first-party data, or information collected directly from their own digital channels and opted-in customers, and not on other types of data. By gathering and analyzing first-party data, marketers can gain insights into user behavior and preferences, enabling more accurate personalization across various touchpoints without relying on controversial third-party cookies.
• Adapt to changing consumer behavior: Consumer attitudes towards consumer data privacy and online tracking are evolving, with many users opting out of cookie tracking and actively seeking ways to protect their personal information. Cookieless personalization aligns with this shift in behavior by offering privacy-aware methods of delivering personalized customer journeys, which can strengthen trust and loyalty with customers.
• Increase competitive advantage: Brands that successfully implement cookieless personalization strategies gain a competitive edge by demonstrating their commitment to user privacy while at the same time delivering superior, tailored experiences. By differentiating themselves in this way, companies can attract and retain customers in an increasingly crowded digital landscape.

Cookies are text files created by websites that users visit, containing user data about their browsing activity. When a user interacts with a website, cookies are sent from the website's server to the user's browser and stored on their device. This information can include login credentials, session identifiers, browsing history, and preferences.

It’s worth mentioning that the term “cookieless” can be misleading because some cookies continue to play a fundamental role in digital marketing. For example, “strictly necessary” cookies that enable services such as logging into a site or using a shopping cart are allowed to be implemented on digital properties without consent. And companies can collect information from first-party cookies that users opt into as well as “zero-party” cookies such as surveys, polls, and other direct feedback.

Although it is changing with time, the traditional web cookie remains an integral part of our digital fabric, and the small bits of data it stores on users' devices provide valuable insights that help companies understand their customers better and tailor marketing strategies, accordingly.

To learn more about the intricate art of personalization, see “6 tips for scaling omnichannel personalized experiences.”

Do you have more questions about making the transition to cookieless personalization? We’ve tried to anticipate and answer them here:

1. How does cookieless personalization differ from traditional cookie-based personalization?
    
   Cookieless personalization delivers tailored content and experiences to individual visitors and customers without relying on third-party browser cookies, using alternative methods such as first-party data, machine learning, and contextual targeting. By contrast, traditional cookie-based personalization tracks user behavior across sites, often by third parties, which then sell the personal data they’ve collected to other businesses.
    
2. Why are web browsers moving away from supporting third-party cookies?
    
   The main drivers of this shift are privacy concerns and regulatory pressures, which are leading marketers to explore alternative methods to understand user needs and preferences and deliver personalized experiences.
   
3. What are the main challenges associated with implementing cookieless personalization strategies?
    
   You’ll need the ability to acquire and analyze first-party data effectively, find ways of ensuring accuracy in targeting without relying on third-party data, and stay agile enough to adapt to evolving privacy regulations and browser restrictions.
    
4. Can cookieless personalization deliver the same level of personalization and targeting accuracy as traditional cookie-based methods?
    
   Yes, with the right technology and strategies in place, cookieless personalization can achieve similar results by leveraging first-party data and the latest artificial intelligence technology.
    
5. How does Sitecore facilitate cookieless personalization?
    
   With customer data, machine learning analytics, and marketing automation at its core, Sitecore XP is a digital marketing hub that leading brands trust to deliver headless, personalized content and experiences. We help brands leverage first-party data to build meaningful, emotional connections with each valued customer.
    
6. What’s the best way to transition from cookie-based to cookieless personalization strategies? 
    
   Start by prioritizing the collection and analysis of your first-party data, then invest in a platform that supports alternative personalization strategies, while staying informed about third-party cookie restrictions as they evolve.
    
7. Are there any emerging best practices for maximizing the effectiveness of cookieless personalization?
    
   The leaders in this space are focusing on relevance and value in the content and experiences they deliver. They are implementing audience segmentation and contextual targeting, optimizing first-party data collection, and analyzing it with the help of AI tools. Finally, they are continuously monitoring and adapting their strategies based on user feedback and performance metrics.

The glass-half-empty marketer may see the blocking of third-party cookies as the end of personalization, but that would be a hasty conclusion. There are many other ways to learn about customer behavior and tailor experiences to the individual.

At Sitecore, we see a bright and cookieless future ahead for every company that values its customer relationships and is willing to do the work of unlocking true insights about each individual it serves. Let us show you how Sitecore can help your brand deliver exceptional experiences, request a demo today!