Customer data in a privacy-first world
The world of customer data is changing rapidly. Recently, the EU and the states of California and Delaware have all made changes to their data policies to ensure customer data is better protected, and it’s likely that more U.S. states will follow suit in the future.
So, what does that mean for customer data in an increasingly privacy-first world? For the last decade, marketers have relied on advertising personalization and targeting using data gleaned by third parties. As the privacy landscape shifts, however, companies and their marketing departments are going to need to create strategies that help them compensate for data restrictions.
According to a recent article published by McKinsey & Company, “Those marketers and companies that do not figure out a strategy to maintain—and even grow—their access to first-party data may have to spend 10 to 20 percent more on marketing and sales to generate the same returns.” That’s not likely to be welcome news, but thankfully, marketers can take steps to make up the difference.
While companies might not be able to personalise their mass customer outreach quite as effectively as when they were using third-party customer data gleaned from cookies, they will still be able to dig into what McKinsey & Company has coined data relationship management, or DRM. This tactic relies on the idea that nurturing trust with customers will help marketers achieve stronger first-person data that lasts in the long term.
There are four components of DRM, including data invitation, a data security centre, data dialogue, and a data value proposition. Through these four components, marketing departments will be able to ensure that their company’s website offers two key elements to customers regularly: data transparency, and value. At the outset, websites should clearly explain to customers that if they supply their data, it will allow for more accurate personalisation in the future, saving the customer time searching for products they’ll love, and offering deals targeted to their needs.
A critical element to this data relationship management process is making sure customers know that they can adjust their data privacy settings when they want to, making sure that they know how to make those changes, and that they can do so easily. When customers have to dig through the website to find privacy settings, it can damage the customer-retailer relationship. Instead, offering the opportunity to change privacy settings at points throughout the customer life cycle will build trust over time that should result in stronger customer relationships and more customer data.
As you’re creating your data relationship management strategy for a privacy-first world, Azpiral can help you manage your customer data, and nurture stronger relationships with customers through continued personalisation. Get in touch via firstname.lastname@example.org to kickstart your customer data strategy today.