Enterprises must not only strengthen controls surrounding data governance, but they must also change their ways to gathering and using enterprise data, particularly Personally Identifiable Information (PII), as data privacy and ethical data usage become more prominent in people’s minds.
The landscape of data privacy is shifting. Comprehensive data privacy regulations are being enacted in response to public uproar, with the goal of protecting customer data.
According to a recent PWC survey “In Data We Trust: Living Up to The Credo of The 21st Century,” 55% of business leaders believe that consumers now trust them more than they did two years ago. However, only 21% of global consumers say they have more trust in how businesses use their data. Instead, 28% believe their trust in companies is eroding, and 76% feel sharing personal information with companies is a “necessary evil.”
Also Read: Four Strategies to Boost Customer Loyalty
Marketers face greater challenges than ever before in rethinking their data-driven targeting, marketing and advertising strategies. In response to mounting worries about data usage, big tech is turning to provide customer privacy as a value proposition.
On one hand, despite these limits and rules, marketers are expected to create user-friendly, more relevant, and consistent brand experiences than ever before. The risks of failing to meet compliance and privacy requirements in the pursuit of personalization, on the other hand, are as high.
The good news is that marketers can still do a lot to create privacy-first marketing strategies that don’t sacrifice reach, relevance, or scale. Here are five strategies they may take to comply with the regulations and compete in today’s privacy-first environment.
Examine existing data collecting and storage methods
Marketers must assess all internal and external data sources that support the scale and reach of their marketing activities. They must ensure that data sources are brand safe and that data collection standards are followed. They should audit each data process for necessity and compliance with security standards in the industry and region, in addition to sources.
While a compliance checklist is essential, marketers should also think about it from the perspective of the customer journey. Understanding customers and their preferences aids in determining what data is truly required to meet their requirements. Data should be collected to meet customer needs, not the other way around, with enterprises collecting data first and then deciding what to do with it. Data hoarding just exposes the brand to security breaches as well as other trust, reputational, and regulatory risks.
Also Read: Good Data Privacy Practices is Key in Creating Excellent Customer Experiences
Adopt a privacy-by-design marketing strategy
Privacy is no longer a secondary consideration. Brands should anticipate tighter and more complicated regulations across markets. Regardless of current laws, the only approach to stay ahead of evolving regulations and consumer preferences is to incorporate the highest data gathering, usage and storage standards into every marketing process. In other words, developing marketing strategies today for an evolving privacy-first future — a future in which privacy-appropriate brand behavior is not merely a reactive response to law, but an important and proactive aspect of a marketing plan based on respect for consumer data.
Build an intent-data vendor network that prioritizes privacy
Marketers have relied heavily on third-party cookie data for advertising, targeting, and personalization in the past. To power marketing at scale without compromising compliance, marketers need to build a new network of brand-safe data sources.
In an age of constant disruption, vendors with a diverse first-party data network, access to anonymised, brand-safe third-party data, and the technology to connect the dots and transform it all into actionable and intelligent intent signals can be powerful growth partners. Creating an intent-data ecosystem with such partners can provide granular consumer insights at the individual and cohort level. It also provides access to platforms where the insights can be enabled to send the relevant messages, as well as reach and scale based on first-party data.
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