For the better part of a decade, marketers have been in a data arms race believing the more they knew about their customers, the better they could tailor experiences. In reality, only a handful of organisation in Australia are using this data effectively. The holy grail of personalisation and automation is still beyond the capability of most, and data collection obsession has created unnecessary risks.
Consumers are growing wise to it too. Poor use of data influences their purchasing decisions, with 66% confirming they had backed out of a transaction or closed an online account over privacy concerns.
The current issue facing marketing
Growing consumer awareness around shady data practices has led to a backlash against the collection and use of personal data without express consent, and regulators and big tech have stepped in.
Regulation has historically struggled to keep pace with emerging technology – but the tables are starting to turn. The past few years have been characterised by regulators clawing back protections of customer data, and the Australian Government is set to release a review of the Privacy Act that will tighten controls on the behaviour of key digital platforms and instigate better protections for consumer privacy.
Technology has also stepped in – starting with Apple, who first restricted the use of third-party cookies in Safari, and recently launched App Tracking Transparency, both designed to curtail the collection and sharing of customer data. Internet browsers Firefox and Google Chrome have also followed suit, with Chrome set to end support of third-party cookies within the next two years.
For marketers, this means that the holy grail of personalisation and automation is growing increasingly complex.
How you can future-proof your digital marketing
In a world where trust is in short supply, getting privacy, consent and data right is critical. The opportunity for most marketers is that consumers are still willing to trade personal information if they see a benefit. Sixty-one percent of millennials are happy to share data if it leads to a more personalised in-store or online shopping experience.
Today’s obligations and risks require a detailed understanding of how compliance wraps around people, processes, data, and technology. This will not only safeguard you against today’s regulatory obligations but future shifts too.
Instead of treating data privacy as a mere compliance issue, companies must proactively change the way they store and manage customer data and consider the value it brings to the customer.
Data & Technology
Evolving your technology and data architecture by focusing on centralised, secure, auditable, and time-limited storage of data
Leveraging and training your existing talent to reshape default ways of working and drive improved consistency and reliability of customer data capture, not to mention more efficiency between privacy and marketing processes
Transforming your business processes and governance by consistently designing privacy into the process and building a customer-first approach to data collection and consent.
Published 27 Jul 2021