Cookies & Customer Tracking
What are “Cookies”?
Cookies are small text files stored in a user's web browser directory or data folder. Ecommerce websites place cookies on their browsers to (1) hold onto login credentials, (2) to identify customers, (3) and to track browsing data for a more customized shopping experience (i.e. when you get recommendations for products on the website itself.
Cookies are not inherently bad, they most oftentimes ease the shopping experience online. They help with:
• Customer log-in
• Saved carts
• Wish list functionality
• Product recommendations
• Custom user interfaces (i.e. "Welcome back, Steve")
• Saving customer address and payment information
A user's browsing history becomes part of a database which the website then uses to improve the customer experience. This is done through two main types of cookies. (1) Session cookies and (2) Persistent cookies.
Session cookies stay on a browser and hold your information until it is closed. When a new browser window is opened, the same user is treated as a new visitor and must input their login credentials/the tracking begins again.
Persistent cookies have a designated lifespan and remain in a browser until the period elapses or the cookie is manually deleted. Websites that use persistent cookies will remember users even after they close a browser. Persistent cookies enable features such as saved shopping carts, which keep products added to cart between sessions.
Ecommerce sites use a combination of session cookies and persistent cookies to create a seamless shopping cart experience. As the user adds items to their cart, session cookies keep track of the items. If the user abandons the cart, persistent cookies will retrieve their selections from the database the next time they visit, or allow you to create abandoned cart messages for the user to prompt checkout.
Cookie Regulations:
Countries and regions around the world have introduced regulations that dictate how businesses collect, handle, and share their customer’s data. Collecting customer data, especially cookie data and other data related to browsing activity, is essential to merchants looking for insights on their customer’s behaviour. This data also helps merchants advertise to customers on third-party marketing platforms.
Shopify has put together a guide on customer tracking through their platform. They also provide app recommendations to adhere to regulations surrounding tracking. We suggest you review the guide and decide what is best for your business.
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