Third-party Cookies vs. Consumer Privacy

Third-party Cookies vs. Consumer Privacy

Some interesting tools that consumers and businesses should be aware of.  As consumers, we will likely see more opportunities to opt out of online activities that collect data about our behaviors. We could also see more tools that allow consumers to provide more accurate information.

The Drive to Personalize

Most every ecommerce merchant uses data to personalize shoppers’ experiences. Some common personalization tactics are:

Present upsell and cross-sell offers.

Online merchants use first-party information from their own databases and cookies to track shopping behaviors. They also purchase third-party databases that help predict behavior and products that will appeal to a specific target shopper. Similar methods have been used with offline direct marketing for years. Online tools like third-party cookies…i.e. cookies left by a domain other than the one a user is visiting…and deep data mining have made the practice easier.

Retarget shoppers who have visited a store but did not make a purchase;                                                  Segment and personalize merchandising offers in your online store.                                                       Target emails at selected consumers who are more likely to buy a certain product;

When used properly with ad networks and ecommerce personalization and recommendation engines, third-party databases increase conversion rates and average order values. They also increase customer loyalty by providing a better customer experience.

Data Collection

Most of the data is now collected with third-party cookies or other means that consumers have opted into, even if they did not necessarily think of it that way. Every time you agree to a license agreement, for example, it’s likely that you are agreeing to share your data in aggregate and anonymously with third parties. Most companies put that in their agreements to protect themselves in the future, regardless of whether they collect the data now.

If third-party cookies are eventually eliminated, there will likely be some type of replacement system that will provide similar functionality. In fact, there’s already a scarier method of tracking consumer behaviors…using digital fingerprinting techniques that profile your computer.

This technique is virtually impossible to block as other devices can see things like your operating system, browser type, your fonts, screen size and depth, time zone, cookie settings, browser plugins, and http header information. The good news is that the use of fingerprinting is relatively small. But, some observers believe this will be a future alternative to third-party cookies.

Tools for Consumers

Axciom, one of the larger data providers, is now offering a tool at AboutTheData.com that allows consumers to see information that Axciom has collected about them and actually correct it if they choose. The bad news is that you have to provide Axciom with even more information than it already has to view the information it has on file. However, you can also choose to opt out of its databases.

You will need to create a login and answer a series of questions to verify your identity. Once that is done, you can review your data, which is broken into several categories.

You may be surprised by the amount of information Axciom maintains. Realize that this is just one of many databases that have information about you that is used in online and offline applications.

Posted in Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments Tagged with: anonymously, average, browser, cookies, customer, data, data mining, databases, digital, domain, ecommerce, fingerprinting, identity, license agreement, loyalty, offline, online, operating system, opted, order, privacy, purchase, Rates, shoppers, values

Cash Back Credit Cards vs. Store Credit Cards

If you want to make the most out of your shopping adventures, you need to have a credit card that helps you save money. The question is, which option is better for you? Some people automatically think about store credit cards, and others go for cash back credit cards. Before you apply for a card, assess which type of card would be more beneficial for your personal needs.

Cash Back Credit Cards

The main perk to having a cash back credit card is the fact that you can use it anywhere. It still acts as a traditional credit card. The only difference is that you get rewards from the money you spend on it. The average cash back credit card offers 1% cash back on all purchases. Some may also pay an additional 2% to 5% cash back on select purchases made with the card. Example, the Citi ThankYou Preferred Card offers 2 reward points per $1 spent on dining and entertainment. Blue Cash Everyday card from American Express offers 3% cash back at supermarkets, 2% cash back at gas stations and 1% on all other purchases. You could earn a great deal of your money if you choose the right cash back card and use it correctly.

The problem with cash back credit cards is that the rewards structure can sometimes be confusing. The Discover It Card features an attractive rewards program, but its 5% cash back offer changes every three months. It may be on home improvement purchases during one quarter, but during another quarter, it may be applicable on purchases at gas stations and for holiday shopping. You have to keep up with the rewards calendar to get the most out of your credit card. You also have to consider any fees associated with your credit card. Some cash back cards on the market have an annual fee, and many have a slightly higher interest rate than the average card. Review the terms of any card you are considering for so you can pick the perfect one for you.

 Store Credit Cards

Store credit cards are usually easy to apply for and just as easy to obtain. Some of them can be used like regular credit cards, and others have to be used at a specific store. For instance, the traditional Walmart credit card can only be used at Walmart, but the Walmart Discover card can be used anywhere Discover is accepted. You need to know this about your card before applying for it. Many people get a store credit card because they receive some type of introductory offer when they apply for one. You might be able to save 10-15% off your initial purchase, or you might get a certain amount of cash back after making your first purchase. These offers are designed to lure you into getting a card, even though you may never use it again. What you may not realize in the euphoria of the introductory offer is the very high interest rate you typically have on a store credit card.

When you start looking at store credit cards, consider what kind of rewards you can get and how those rewards are accumulated. Do they only come from purchases at that store, or do they come from any transaction? Are you required to use rewards in the store, or can you use them online? Does the card have an annual fee? You must go through this type of analysis before deciding if a store credit card is worth getting.

Are Cash Back Credit Cards Better Than Store Credit Cards?

In our opinion, yes. This isn’t because we’re biased towards cash back cards. We just like the idea that you can earn rewards wherever you make a transaction. You aren’t limited to one store, either in the way you spend money or the way you collect your rewards. In addition, store cards usually have a higher interest rate. With that said, there are people who benefit from store credit cards because they shop at those stores all the time. If you spend thousands of dollars a year at Lowe’s for your construction company, a Lowe’s credit card may provide substantial savings for your business.

Don’t get overly excited when you reach the checkout counter. That one-time savings on a store credit card may not be worth it in the end. Think over your shopping habits and see if a cash back credit card is more suited for your needs. If so, you have plenty of them to choose from.

Posted in Electronic Payments, Financial Services, Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: %, accumulated, American Express, annual, assesses, average, beneficial, calendar, cash, cash back, checkout, credit cards, dining, Discover, earn, entertainment, fee, improvement, interest, lowe's, market, money, online, pay, points, preferred, purchases, quarter, rate, rewards, savings, shopping, store, traditional, transaction, walmart