Pick up any newspaper over the past 18 months and you will struggle to ignore sensational stories concerning data breaches, privacy scandals and diminishing trust in behemoth data players like Facebook and Google.
But while consumers are becoming more discerning than ever when it comes to who they hand their personal data to, these same consumers are demanding better personalization, bespoke content and laser-focused product recommendations. This is the personalization and privacy paradox.
To tackle this colossus of subject matters, I sat down with Forrester’s Principal Analyst; Fatemah Khatibloo to get to grips with how brands can build more meaningful connections with cynical consumers in the new age of privacy.
Watch my full interview for the full story on how to break the personalization and privacy paradox, as well as tangible examples for how to collect zero-party data at scale and prove ROI.
Can Personalization & Privacy Co-Exist?
For marketers who still rely on third-party data sets, cookies and past purchases to power personalization strategies this is something of a headache, and will only deepen consumer mistrust. But for those marketers who are prepared to ask rather than infer, this is an opportunity to build more meaningful and lasting connections with consumers.
“We have moved into an era where consumers expect personalization, they want relevant content and relevant offers, but they also want their data used fairly, ethically and well.”
Has The GDPR Been A Force For Good?
As marketers were forced to go cold turkey on their third-party data quick fix and the forms on creepy marketing that had eroded consumer trust, rather than rather than ringing the death knell for personalization marketing, the GDPR had improved it. Marketers, on the whole have taken it as the jolt to improve transparency, clear out stale data and deliver an altogether better experience for the consumer.
“Those who embrace the spirit of GDPR, as opposed to checking boxes to be compliant are seeing really interesting benefits.”
What Is The Solution?
It is possible for marketers to collect data that is willfully shared directly with them by the consumer. This is zero-party data.
A class of data that a customer intentionally and proactively shares with a brand. It can include purchase intentions, personal context and how the individual wants the brand to recognize them. In essence not what they’ve done in the past, but what they intend to do in the future.
Zero-party data allows brands to build direct relationships with consumers, and in turn, better personalize their marketing efforts, services, offers and product recommendations. As it comes directly from the consumer, there are no intermediaries, no guesswork.
“Zero-party data is that which a consumer intentionally and explicitly shares with your company, and it is gold.”
How Do Brands Collect Zero-Party Data At Scale
Consumers need to be entertained, engaged and receive something in return for their preference data. Brands can deliver this through interactive experiences that conduct research, accrue opt-ins and deliver an altogether better experience with a tangible value exchange.
Empowering you to stop using guesswork by arming you with the data you need to make the right connections with your customers. And by leveraging the right mechanics, and offering a value exchange, your customers will tell you what products they desire, what they look for in a service, and what motivates them to purchase.
“We need to use the data we collect efficiently, effectively and well, making sure we are trading something of value for the customer.”
The Rise Of The Zero-Party Data Economy
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