As consumers have become more web-savvy (due in part to their reliance on the web for information and purchasing during COVID’s forced isolation), they are increasingly aware that companies are collecting their data. This presents a unique challenge for marketers. How can marketers use customer data to provide a personalized experience while still responding to consumers’ concerns about privacy in a way that helps build trust?
In a recent webinar, Brent Phillips, vice president, Product and Portfolio Marketing at OneTrust, Jamie Molnar, director, Product Marketing at OneTrust, and Stephen Streich, vice president Product at Oracle CX Marketing, shared five tips for bridging the gap between consumers’ need for privacy and a marketer’s need for data-driven personalization.
1. Consumers are becoming more aware
Consumers are becoming more educated about the information they are sharing and how it’s being used. For many, especially young consumers, this data exchange is simply part of the digital experience. Stephen pointed out that they know, for instance, that their “Netflix experience is being made better by the fact that Netflix is gathering their preference data.” They recognize that when a marketer lacks quality data, it leads to bad product recommendations and other negative experiences. When a customer says, “This website is terrible, and I can’t find what I’m looking for,” they are increasingly aware that a company is failing to personalize their experience with data.
2. Consumers are looking for value in exchange for their data
Increasingly privacy-conscious consumers expect to receive real value in return for their information. The new era of customer data activation is less about hunting consumers and more about negotiating with them. “I’ll gladly give away my data if I’m rewarded with a great experience,” says Stephen. The way to win over customers in an age of transparency is trust and the exchange of real value.
3. It’s true for B2B, as well
Businesses, like individual consumers, assume a level of risk when making a purchase. Business customers are looking to get educated in order to avoid making a bad decision. “If you want to be the brand they do business with,” says Stephen, “you need to get them to spend time with you, learn from you, and be educated by you. And to do that, you have to provide them with a good experience—a relevant experience.” You do that by putting their data to work in a way that provides value.
4. Something like 70% of consumers would boycott a company for misusing data
They say it takes years to build trust and seconds to lose it. That is why Brent recommends having ethical data practices built into the DNA of your business. “What behaviors do we need to have in place so buyers can understand how we operate and see how our data is being used?” he asks. This goes well beyond the point where personal data is accumulated to include its downstream uses. Are ethical data practices being retained when moving into third-party systems?
5. Whether B2C or B2B, we are marketing to individuals
While much of B2B marketing can be abstracted to the level of the “account,” the organizations consuming B2B marketing materials are, in fact, made up of individuals. As Jamie points out, the level of personalization in B2B marketing has lagged far behind B2C. Stephen agrees, pointing out that “Don’t you know I work at 3M?” is a perfectly reasonable response for a business customer to have in a world where nearly all other marketing has been personalized.
