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This article was written by Jonathan Joseph, Head of Solutions and Marketing at Ketch.
Consumer data privacy is all the rage in terms of regulatory attention and deployment. In 2022, we anticipate modern privacy legislation in India and six states here in the United States. In Europe, we are seeing reinvigorated regulators taking action against violators, such as the CNIL, which fined Google €150 million and Facebook €60 million for internet violations. free consent of users. In the United States, we are seeing rulemaking by the FTC and political activity by the White House on AI and automated decision-making.
Meanwhile, consumer privacy awareness is also on the rise, partly because of these new regulations, and partly because of media stories detailing Big Tech’s privacy shortcomings.
Growing consumer awareness of privacy is one reason chief marketing officers (CMOs) and marketing teams need to pay close attention to privacy initiatives. Typically, enterprise privacy initiatives involve cross-functional stakeholders, such as legal, technology, and digital teams. impact on customer journeys, insights and the use of customer data, it is imperative that marketing teams make their voices heard in rolling out the organization’s privacy initiatives. run on the ground.
Consumers value their privacy
Consumer awareness of privacy is high, and it features prominently in the value system with sustainable supply chains and organic food. For brands looking to align with the values of their consumers, trust and transparency about how they handle customer data is key to creating brand value.
Building trust and aligning with consumer awareness and desire for privacy has a direct impact on revenue and growth. McKinsey, in a study on consumer data and privacy, observes that consumers “vote with their feet” and shy away from doing business with companies whose data privacy practices they don’t trust. Consumers’ lack of trust in how companies process their data creates an opportunity for brands to differentiate themselves by taking “deliberate and positive actions” in messaging and positioning.
It is essential to articulate the value that consumers will get in exchange for sharing their data. Additionally, not collecting more data than necessary is top of the list when building trust with consumers.
Brands spend a lot of time and resources carefully curating the digital experiences of their prospects and customers, and lately that experience is marred by privacy banners and cookie pop-ups that lead to incomprehensible privacy statements. It serves no one’s interests.
Marketing teams are tasked with orchestrating positive and enjoyable customer experiences, and it is possible to influence the privacy effort as it intersects with the customer experience. The privacy experience can be an incredible opportunity to articulate a brand’s values and commitment to transparency. This includes a humanization of privacy, with careful consideration of the language used in policy. For example, “preference” or “choice” is preferable to “consent”. Strive to have communications that an average person can connect with on first reading.
Above all, do what you say you are going to do. If a consumer expresses a privacy choice, ensure that the stated preference is reflected in all relevant data systems. This will increase that person’s level of trust in your brand and could very well contribute to increased sales. According to Gartner, by 2023, “companies that earn and maintain digital trust with their customers will see 30% more digital commerce profits than their competitors.”
Data-driven growth and privacy are compatible
Nothing says marketers can’t simultaneously create value and uphold privacy values. Data-driven growth and respect for data privacy are compatible goals.
For marketing teams, data-driven growth has come with ever-expanding stacks of marketing technology. These technology stacks are subject to legal scrutiny with each new consumer privacy regulation. For example, with the rollout of GDPR, a third of companies surveyed said they had changed at least one marketing or advertising provider. It is imperative that marketing teams are involved in making these decisions.
As we look forward to marketing processes with more artificial intelligence and machine-driven decision-making, trust is emerging as a fundamental building block and flywheel for growth. Embedding trust through programmatic data practices into your data ecosystem future-proofs your business and positions it for expansion into more markets. According to Gartner, organizations that build digital trust will be able to participate in “50% more ecosystems to expand revenue generation opportunities.”
Privacy shouldn’t stop a brand from using consumer data to grow. It only requires brands to use responsibly collected data that reflects consumers’ last choice of privacy. The challenge is one of execution: orchestrating consumer preferences across the marketing technology stack and ecosystem shouldn’t be hard and manual. The industry has solved manual processes in advertising with programmatic solutions, and as a result, ads can be purchased and delivered within milliseconds. We need a similar approach to privacy.
Jonathan Joseph is Head of Solutions and Marketing at Ketch.
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