– Privacy changes are impacting ecommerce companies and require a shift in strategy.
– Companies have been doubling down on their efforts without rethinking their approach, which is not a sustainable solution.
– Building a new roof, which involves collecting consent-based data and using it to build a stronger brand, is the better long-term move in a privacy-focused world.The key action item is to start collecting consent-based data and use it to build a stronger brand in a privacy-focused world.Privacy changes are going to affect every ecommerce company. Privacy changes are like a leaky roof; people put a bucket under it and only worry about it when it rains. We saw this with the iOS changes in the last year. Instead of rethinking their strategy, companies decided to just double down on efforts, doing the same things they were supposed to be doing and hoping for a better result. This is the equivalent of getting a bigger bucket. The roof will cave in eventually, and you’re going to run out of buckets to collect the water. Moving to different ad networks was just diverting the water to a stronger part of the roof; eventually, it will start leaking too. The real answer is building a new roof. It’s a super costly shift, but in the long run, it’s the better move. How do you build a better roof in a rapidly changing privacy-focused world? Start collecting consent-based data and use it to build a better, stronger brand. Today, right now, on your website, when you’re only collecting an email and a phone number, you’re wasting money. You can’t get back the money spent to acquire that customer and add data and understanding to it. So for most ecommerce companies, the end game is acquisition by brand or by Private Equity. Your valuation is dependent largely on your profitability, brand equity, and other assets that can be leveraged into money. Data is one of the largest assets you can create on a client list. Although you might not have a data analyst or scientist internally, you better believe that all PE and large brands do. There’s untold value in your data, but there is no value if you’re not collecting it. Without it, you’re just adding larger buckets to a leaky roof until it collapses. #ecommerce #strategy #datahttps://www.linkedin.com/in/jivanco