Balancing Personalization and Privacy is the Key to Enhanced Customer experience

    Balancing Personalization and Privacy is the Key to Enhanced Customer experience

    To truly provide consumers with a 1:1 experience, brands must avoid jumping on the personalization bandwagon and instead leverage modern technology that can support an omnichannel presence, provide the right data, and, most importantly, strike the right balance between consumer privacy and personalization.

    As organizations learn how to deliver personalized ads to customers while complying to privacy concerns and expectations, the personalization conversation continues to evolve on a daily basis. However, as more companies jump on the personalization bandwagon, their credibility is eroding. Consumers don’t want personalization for the sake of personalization; they want personalization that is good and meaningful. They want to feel as if they are the only customer a company is interacting with, rather than being lumped in with others.

    Brands that claim to have 1:1 personalization plans in place but don’t have the right tools or know-how to apply them are destroying what 1:1 personalization means to customers. So much so that a haphazard approach can be detrimental to the relationship between brands and their consumers.

    Also Read: Building Meaningful Connection by Delivering Exceptional Customer Experience

    The need for an omnichannel presence

    Customers use a variety of channels and devices, so marketers face difficulty in determining how to send a personalized message and on whichever platform or device. As per PwC’s June 2021 Global Consumer Insights Pulse Survey, 44 percent of customers purchase on their mobile phones, 42 percent on smart home voice assistants like Amazon Echo and Google Home, and 38 percent on tablets.

    The online shopping channels and devices that consumers user are exploding. It’s up to the brands to figure out how to reach people at the right time and on the right device or channel.

    Marketers can target customers on a more personal level on the channels and devices they use the most by investing in technology that supports an omnichannel presence, providing a relevant, consistent and seamless message throughout the customer journey.

    Leveraging consumer data

    Building a personalization strategy requires analyzing and comprehending consumer data. Brands should begin with profile data such as demographics and preferences, and then consider contextual data such as time of day, weather in a customer’s location, and current events.

    Understanding the difference between first-party and third-party data is crucial when collecting customer data. Once all data, both offline and online, has been gathered, marketers will have a greater grasp of the lifestyles of their customers and how to tailor their messaging accordingly. Brands can gain this insight without jeopardizing consumer privacy if they use the right technology in place.

    Also Read: B2B Websites Not Convincing Enough to Engage Buyers: Forrester

    Balancing personalization and privacy

    Many companies that have jumped on the personalization bandwagon may be overlooking the need of striking a balance between personalization and user privacy. Consumers are more aware than ever before of how their data is being used. And today’s tech giants are offering customers more control over whether or not they want brands to track their data across websites and apps.

    Finding the right balance can be tough and complicated. According to the 2019 Pew Research report “Americans and Privacy: Concerned, Confused and Feeling Lack of Control Over Their Personal Information,”consumers are more likely to shop with brands that recognize, remember, and provide relevant offers and recommendations, while 81 percent of consumers believe they have little to no control over their data.

    The personalization bandwagon is littered with intrusive and useless information and strategies that don’t add value to the customer experience but rather obstruct the creation of a personalized one. However, due to the absence of data and personalization in this technique, a brand runs the danger of sending a targeted message about a product that the consumer may already own, putting consumer trust in jeopardy.

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