Concerns About Data Privacy

Happy Data Privacy Day 2022! If this is the first time you’ve heard of this celebratory day, here’s a little history. Data Privacy Day is an international holiday, initially celebrated in 2007 by European countries. Two years later, the holiday was adopted by the United States, and today, Data Privacy Day is celebrated by 51 countries! It aims to bring awareness to businesses and users on the importance of protecting their personal data and privacy online.

How Alternative Value Exchange Can Keep You In Control of Your Data

In our recent 2022 State of Customer Data Report, we touched on five trends we see around customer data. One of which was the greater privacy concerns. 

Greater Privacy Concerns 

Bringing awareness to data protection and privacy online meant changes to customer data regulations. This shift has slowly been happening over the past decade. Still, the most significant change came when Google announced it would block third-party cookie tracking. Dubbed the cookiepocolypse, this shift has changed the way businesses need to think about how they collect and use their customer data. 

Customers want to have more control over what data companies can gather. A reported 88% of customers wish to consent over their data usage. We suspect this number will only increase, so we predict similar restrictions to second-party data usage. 

Only 7% of consumers know how companies use their information once they consent. As marketers, it’s our job to inform users of intended data usage. Customers are more likely to opt into data collection if they see the enhanced value gained from using their data.

Why You Should Own Data Collection

This quote examines how Peter Rice, Director of Marketing Systems Strategy at Kepler Group, thinks about developing trust in a privacy-centric world. Kepler Group is a global agency focusing on helping its clients harness the power of data and technology.

“Developing customer trust is paramount to building loyalty and presenting a brand image that is authentic and inviting. Customers’ expectations for choice and control over the data they generate has grown massively over the past few years, and at the same time, technical and legislative initiatives have limited the granularity and speed at which brands can collect and enhance user information broadly. For this reason, it is critically important that brands have control over their own data. Without this control, it is significantly more difficult to collect, maintain and respect consent signals, and it will become increasingly difficult to still provide authentic, personalized and relevant experiences to customers. Brands that are able to gain this control and maintain transparency will be better positioned to make great use of consented data.“

 

-Peter Rice, Director Marketing Systems Strategy at Kepler Group

Alternative Value Exchange

Brands are in a bit of a bind. Customers want extraordinary personalized experiences, yet less of their information is readily available. The solution focuses on zero-party and first-party data by controlling the data collection process. We call this process the alternative value exchange. This statement means that in exchange for customers answering questions about the type of experience they expect, brands agree to deliver. Once again, companies can gain the valuable information they need. In return, users can feel confident that their data directly impacts their overall experience.

The Future of Data Privacy

As the adage goes, the best defense is a good offense. Before third-party and second-party data are no longer feasible, your data strategy should already have shifted away from them. Collecting your own data allows you to control the information you receive and put it towards delivering an exceptional customer experience. It also helps build trust between you and your customer. When a customer sees the data you collected used, as you stated, it strengthens your relationship with them. Strong relationships lead to better brand loyalty and retention.

To read more on maximizing your marketing efforts in a privacy-centric world, check out this blog!