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Over the past two years, marketers have adapted to the changing expectations of consumers interacting with brands. Recent privacy changes at Big Tech and the introduction of new privacy legislation at the state and federal levels in the U.S. are evidence of this
79% of Americans are concerned about the way companies use data and Distrust continues to grow, and brands must now move away from the data strategies they previously relied on and evaluate new privacy-oriented strategies. This will allow brands to develop targeted strategies to engage consumers while maintaining the personalized experience they expect. The challenge is that many organizations were not previously reliant on discovering and leveraging their own data sources, which meant they had to develop new response strategies. These include allocating more resources to contextual marketing strategies, building zero- and first-party data assets, and forming compliant second-party relationships.
That burden now falls on marketers. They must develop new strategies to manage successful marketing programs while taking responsibility for data. Here are three ways to get started.
While consumer concerns about data privacy are nothing new, calls for stronger data privacy protections have grown in recent years as consumers become more aware of how brands use their data . Consumers are increasingly concerned about businesses misusing their data and are often reluctant to share information because they want to maintain their privacy.
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Now is the time for marketers to revisit their attribution models and target consumers with privacy first. With every action, a brand either builds or weakens trust.
According to BCG, more than two-thirds of consumers want customized interactions when interacting with brands, but almost half are reluctant to share their data to receive personalities ization details. This puts marketers at a crossroads. How can they deliver a highly customized customer experience without gaining powerful data and insights about individual preferences and behaviors? The solution lies in zero- and first-party data.
Zero data and 1st party data
To deliver and exceed customer expectations, brands must move away from reliance on third parties and turn their attention inward to the customer data they already collect. Fortunately, many brands already have the information a cookie provides – it just needs to identify and collect it.
The term zero-party data was coined by Forrester in 2020, but the concept has been practiced for much longer. Forrester sees zero-party data as an innovative form of first-party data that consumers intentionally and proactively share with brands. This is slowly becoming a heavyweight champion for marketers.
Due to the numerous touchpoints consumers encounter when interacting with brands, it is not uncommon for zero-party data to reside in dozens of different places within an organization. By revisiting key channels such as loyalty programs, preference centers or surveys, brands can gain new data and insights about their consumers. These channels are the cornerstone of the search for new, more reliable consumer data. This type of data can also build more trust between brands and consumers as they are willing to give up data in exchange for a better experience when interacting with the brand.
By collecting these numerous data points, brands can bridge the gaps in data and integrate it into actionable insights.
Act on data to deliver a personalized brand experience
Customers are more likely to buy from brands that offer relevant offers and recommendations. This can be achieved by focusing on manipulating zero- and first-party data. Data mining uncovers those previously untouched variables that brands must manipulate and use to design customized customer experiences. Brands that focus on every interaction with every consumer are able to retain as much data as possible. However, by asking for this data, you have implied that you will act on it, and it is now your responsibility to do so.
With so many choices in today’s digital world, consumers don’t need to be loyal to one brand. According to SalesForce, 71% of consumers globally have changed brands at least once in the past year, and more than half (60%) of consumers say they will return to retailers after a personalized shopping experience. If you deepen your understanding of what consumers value most when interacting with your brand, you can create differentiated value for them through a more personalized experience.
Your Brand: Combining Privacy and Personalization Together
Brands must start making changes that respect consumer privacy, starting with proving to consumers that they value their Communicate preferences, rights and personal data and are using it in ways that benefit the individual. Organizations that put data privacy at the heart of it rather than an afterthought will have the most success. While driving engagement will become more challenging, it is an important job.
Now is the time for marketers to integrate data privacy into their brand identity and engage with consumers in authentic, personalized ways—privacy comes first.
Marketers, time to get to work.
Todd Hatley is Senior Vice President of Data, Insights and Customer Experience at RRD Marketing Solutions .
Data Decision Maker
Welcome to VentureBeat Community!
DataDecisionMakers is home to experts, including technologists working with data, to share data-related insights and innovations.
If you want to learn about cutting-edge thinking and the latest information, best practices, and the future of data and data technology, join our DataDecisionMakers.
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Read more from DataDecisionMakers
Customers are more likely to buy from brands that offer relevant offers and recommendations. This can be achieved by focusing on manipulating zero- and first-party data. Data mining uncovers those previously untouched variables that brands must manipulate and use to design customized customer experiences. Brands that focus on every interaction with every consumer are able to retain as much data as possible. However, by asking for this data, you have implied that you will act on it, and it is now your responsibility to do so.
With so many choices in today’s digital world, consumers don’t need to be loyal to one brand. According to SalesForce, 71% of consumers globally have changed brands at least once in the past year, and more than half (60%) of consumers say they will return to retailers after a personalized shopping experience. If you deepen your understanding of what consumers value most when interacting with your brand, you can create differentiated value for them through a more personalized experience.
Your Brand: Combining Privacy and Personalization Together
Brands must start making changes that respect consumer privacy, starting with proving to consumers that they value their Communicate preferences, rights and personal data and are using it in ways that benefit the individual. Organizations that put data privacy at the heart of it rather than an afterthought will have the most success. While driving engagement will become more challenging, it is an important job.
Now is the time for marketers to integrate data privacy into their brand identity and engage with consumers in authentic, personalized ways—privacy comes first.
Marketers, time to get to work.
Todd Hatley is Senior Vice President of Data, Insights and Customer Experience at RRD Marketing Solutions .
Data Decision Maker
Welcome to VentureBeat Community!
DataDecisionMakers is home to experts, including technologists working with data, to share data-related insights and innovations.
If you want to learn about cutting-edge thinking and the latest information, best practices, and the future of data and data technology, join our DataDecisionMakers.
You may even consider publishing your own article!
Read more from DataDecisionMakers
