A New Era of Data Privacy – Why CMOs Need to Focus on Customer Data Privacy Efforts

    A New Era of Data Privacy - Why CMOs Need to Focus on Customer-01

    Brands can go beyond merely fulfilling a requirement and unlock totally new ways to engage with consumers by addressing data privacy as both customer service and a business imperative. A CMO can shape and foster long-term customer trust by combining innovative ideas with well-earned trust.

    Today, data privacy is at the forefront of every digital technology conversation. CMOs are now the stewards of the brand-customer relationship, as well as the gatekeepers of the trust that can make or break the relationship. At the same time, as organizations recover from the impact of the pandemic, today’s CMO must drive revenue.

    Balancing these disparate challenges is a delicate dance that necessitates inventiveness, data mastery, and serious consideration for consumer privacy.

    A CMO needs a fully engaged team within their company and a privacy-first approach to super-serve consumers while also maintaining their trust.

    Consumers value privacy

    For businesses looking to align with the values of their customers, transparency, and trust around how they treat customer data are crucial for brand value. Revenue and growth are directly impacted by building trust and connecting with consumer awareness and a desire for privacy.

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    It’s crucial to communicate the benefits that consumers will receive in exchange for sharing their data. Furthermore, when it comes to gaining consumer trust, not gathering more data than is required is at the top of the list.

    Data-driven growth and data protection

    There’s no reason why marketers can’t create value while also respecting privacy. Data-driven growth and data privacy are mutually beneficial goals.

    Data-driven growth has been accompanied by ever-expanding marketing technology stacks for marketing teams. With each new consumer privacy regulation, these tech stacks are subjected to judicial scrutiny.

    Trust is becoming a core component and flywheel for growth as businesses look forward to marketing processes with more AI and machine-driven decisions. Embedding trust in the data ecosystem through programmatic data practices future-proofs the company and prepares it to expand into new markets.

    The privacy should not be a roadblock preventing a company from using customer data to grow. It just requires that brands use data in accordance with the privacy preferences mandated by the customer. The issue is one of execution: coordinating customer preferences across the marketing tech stack and ecosystem shouldn’t be complicated or time-consuming. With programmatic solutions, the industry has overcome manual processes in advertising, allowing ads to be bought and delivered in milliseconds. In terms of privacy, a similar approach is required.

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    Internal buy-in

    To be successful, the data privacy development process necessitates crucial feedback and alignment throughout all levels and departments in the company. The inherent creativity of the CMO allows them to take the lead in this situation. By discussing the rationale for a privacy-first strategy with all internal stakeholders, each can see how doing it right affects them directly and how success is dependent on their collective buy-in. Most significantly, this communication should include both executive leaders and the midlevel divisions that may still believe that data collection and policy are entirely the responsibility of the technology team.

    But how can this misperception be changed? By speaking the language of each department, CMOs can demonstrate that what’s best for the company as a whole is also best for every interaction a customer and their data has with their brand. Marketers, for example, can reduce the amount of data that isn’t actionable by strengthening privacy policies, making their efforts more targeted and effective. Compliance officers can also breathe a sigh of relief because data that’s not actionable is a liability that should be avoided. Branding teams gain greater consumer trust when consumers perceive that their experience is personalized without collecting unneeded data.

    What may have appeared to be a chore can be redefined as an opportunity with complete team involvement. A CMO can also collaborate with project leads to test and adjust data privacy methods with the help of a fully engaged internal feedback loop.

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