<strong>Why Retail Media is the Future of E-commerce</strong>

Why Retail Media is the Future of E-commerce

Nylas provides access to the 1st-party data needed to make your retail media arm a data-driven powerhouse. 



A significant shift is underway in the retail industry. Historically, retailers have relied on massive amounts of 3rd-party data to understand and interact with their customers; however, consumers are more concerned with ​​data privacy than ever before. This paradigm shift in balancing data privacy with the need for personalization is forcing companies to overhaul their strategies to stay competitive while still maximizing their consumer base. 

71% of consumers expect companies to deliver personalized interactions but are increasingly concerned about data privacy. In response, governments have introduced data collection and ad-tracking regulations, such as GDPR, Brazilian General Data Protection Law (LGPD), and the California Consumer Privacy Act. Tech companies have also strengthened data privacy standards with 3rd-party cookies getting blocked by Chrome, Safari, and Firefox and ad tracking on iOS and soon Android.


These tightening consumer privacy standards have undercut long-standing digital-marketing practices, making it more challenging to communicate with consumers in personalized ways  – which is arguably a better experience for consumers and companies.

A cookieless world is coming (Twilio)

So what’s the solution for retailers to comply with stricter privacy laws and drive customer loyalty? Building a powerful and data-driven retail media network.

What is Retail Media?

The dawn of the cookieless era has forced retailers to rethink their strategies as traditional data sharing of end user information collected from third-party providers continues to erode.

Retail media leverages customer insights to offer a high-quality understanding of audiences and their buying habits while complying with privacy regulations. A critical factor in why a strong retail media network is the future of e-commerce is unlocking 1st-party data to offer closed-loop marketing – tying media campaigns back to omni-channel sales. Retailers have access to enormous volumes of data from sales cycles, purchases, and repurchases. Customer loyalty programs also add to this treasure trove of data and enable customers to actively engage with brands in return for more personalized experiences.

A cookieless world is coming (Twilio)

The most valuable and in-depth wealth of 1st-party data, however, often remains untapped – consumer inboxes.

Unlocking 1st-Party Data with Nylas

Search your personal email for “order confirmation” – how many emails come up?  Think about ALL the data retailers could access and use to better understand consumers’ buying behaviors.

Email was – and is – the fundamental way humans communicate and a treasure trove of data. The problem, however, is that the many different email providers act like foreign languages, and accessing an email is just the tip of the iceberg. You need to build real-time ETL solutions to extract, transform, and load that data into your data warehouse/processor to unlock the insights.

This is where Nylas comes in.

Once consumers authenticate their email with an e-commerce app, the Nylas Email API immediately syncs historical order data as well as real-time order data. Using proprietary technology and a multi-step filtering process to maximize security and privacy, Neural parsers extract only post-purchase data (order and delivery confirmations, for example) from emails. Retailers then use Nylas Streams to normalize and send the consumer purchase data to their data processor of choice – arming retail networks with unparalleled 1st-party data and insights.

Nylas gives you access to 1st-party data that is: 

  • High-quality: It comes from one clear source – your customers
  • Holistic: Access to 1st-party data from consumer purchase emails from > 90% of retailers – NOT just from your application 
  • Accurate: You know exactly what you are measuring and analyzing
  • Real-time: Fast historical sync (<10s) provides immediate value right after customers give you access to their email 
  • Cost-effective: You collect and own the data yourself with minimal setup costs 

Incentivizing Consumers to Connect

Retailers use several proven levers to get their customers to grant access to their inboxes.  By offering loyalty programs, high-value offers and features, improved personalization, and a better customer experience, retailers have formed a partnership with their customers – trading value for value. On average, our current customers have shown a +10% month-over-month growth adoption rate, increased transactions by 3x, and achieved +20% growth in GMV.

Power Retail Media Arms with Unparalleled 1st-Party Data

Bain estimates that the retail media market will grow by 25% per year to $100 billion over the next five years and will account for over 25% of total digital media spending by 2026. Retailers that unlock the value of leveraging both 1st and 3rd-party data access insights that strengthen their relationship with their customers while increasing brand loyalty and revenue. These in-depth insights enhance messaging with actual in-store and online sales data and give you tools to fund additional investments in product improvements. 

By unlocking the 1st-party data within emails, you can better understand consumer behavior, segments, and trends; deliver more impactful messages to customers, and measure effectiveness at multiple touchpoints along the customer journey.


Connect with one of our platform experts to learn more and test how Nylas can strengthen your retail media network to drive a better consumer experience, greater customer loyalty, and revenue

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