In a world that is increasingly aware of data privacy, marketing stands at a crossroads. Strict compliance regulations such as the General Data Protection Regulation (GDPR) and Consumer Privacy Protection Act (CCPA) are introduced almost daily. Marketers around the world continue to feel pressure to stay on the right side of the law while delivering the personalized experiences their customers expect of them.
Most marketers, of course, try very hard to do the right thing. As we approach the fourth anniversary of the General Data Protection Regulation (GDPR), we can see that there have been fundamental shifts in how marketing consent is collected from customers to follow the letter and spirit of the law.
See more: Data privacy: a playground or a management minefield?
But there’s a big problem behind checkboxes – one that can cost marketers dearly.
The fall of an overconfident marketer
In the fourth quarter of 2021, Zeotap conducted a survey of 500 leading marketers to understand the applicable data privacy practices and how they align with marketing success.
Respondents were asked how far above (or below) their goals were for 2021. According to their achievement, they were then categorized into five distinct success models: from “top 1%” (achieving 70-100% above target) to “lower-level marketer” who achieved 60-100% less than their goal.
The study found, perhaps surprisingly, that marketers have a high level of confidence in their data compliance standards, with close to 100% confidence among the top runners:
However, as we delve deeper into these numbers, high confidence in this “data focus” is actually not as promising as it seems. Here’s why.
The castle of compliance is built on the sand
Balancing marketing goals and data privacy has always required one thing at its base: a single customer offer. This occurs when data is consolidated into an individual user’s “golden log” and its associated data points derived from each touchpoint.
This is critical to delivering data privacy because of how consent is gained on today’s multi-touch, multi-channel journeys. Simply put, it is very likely that consent is obtained via multiple tools (eg consent management platform, loyalty program, email marketing), which means that an individual can express (and withdraw) consent in many different places. Unless these options are resolved in a single view, it is likely that activating that data would be against the regulations.
This is why a single customer view is important: it means getting a comprehensive view of a customer’s approval preferences across these multiple touch points and channels. This is why a marketer who does not have a “golden record” may have misplaced confidence in his compliance.
Here’s the good news: Our research has shown that, in general, the more successful a marketer is, the more likely they are to actually get that “golden record” – with adoption falling off the cliff as we start looking at “less successful” marketers:
But here’s the catch: If we review our findings on who achieved one customer view, we see that there is a large percentage of marketers who don’t do He has a gold record Act Express confidence about the compliance of their data. Roughly a third of confident “stumbled” marketers fall into this category:
This means that there is a large percentage of marketers who believe their data privacy practices are locked in when in fact they may be making mistakes with the potential of earning hefty fines.
How to balance ambition and work
To avoid becoming one of the groups of overconfident marketers, those who want to succeed in 2022 need to challenge what kind of data they collect, how they manage it, and what purpose they use that data for.
The end result should be a useful and transparent data set that delivers value to both the marketer and the customer. Here is a set of best practices to follow in order to achieve this:
- Criticize your data collection practices. Evaluate the data your index collects against what you’re using it for, and see if the two actually line up.
- Get serious about data storage and access. Not everyone in your business should have the same level of access to customer data, and it shouldn’t necessarily be used for every purpose. Take steps to check this with your Data Protection Officer (DPO).
- Reviewing the approval collection process and sending messages to the consumer. Ask yourself: Do the messages cover all aspects of the data collected? Do the objects really reflect what you do? Is the language easy to understand for consumers, and does it build trust in a relationship around the use of customer data?
- Adopt the appropriate tools to manage and standardize the approval journey. Data privacy is about more than just consent collection: To create a single, all-important customer offer, invest in a Customer Data Platform (CDP) to help you manage consent preferences across channels, allowing them to automatically appear in all marketing campaigns at all times.
See more: Sharing and enhancing data in a privacy-safe way with Clean Room
While data privacy measures may seem like a limitation, it is actually an opportunity to further improve the customer experience in 2022. Marketers well equipped with a strong foundation of approved data are already at the fore, while those who still own will start the work that needs to be done. Do in the retreat next year.
What steps have you taken to comply with data privacy laws? Share with us on social networking site facebook, Twitterand LinkedIn.