Data Law Compliance Not Enough in Isolation to Protect Consumer Privacy
Data privacy is a consistently hot topic and the flames are fanned with questions around what constitutes personal data and where do we draw the line between being aware of consumer behaviour and being too aware. Bill Muller, CMO, Visual IQ, spoke to ExchangeWire about how brands need to go beyond simply complying with the latest privacy regulation as a bare minimum, if they want to put their consumers at ease.
Data privacy is back in the limelight, following the announcement of ‘Privacy Shield’ (the new agreement created to replace ‘Safe Harbour’), which obligates US companies using European personal data to guarantee adherence to privacy laws. This announcement comes just months after the initial draft of the General Data Protection Regulation (GDPR), governing the use of EU citizens’ data. These new privacy laws will give consumers more control over how their data is collected, stored, shared, and used, and will introduce significant fines when companies break the rules.
But smart brands understand that simply adhering to data laws is not enough to protect the consumer’s sense of privacy, no matter how current those laws are. Advancements in tech allow marketers to determine which techniques are securing sales and target consumers with more precision than ever before; but the benefits of marketing measurement and targeting are negated if their execution erodes consumer trust. To win the hearts and minds of the consumer – and improve perception of marketing tactics – brands must demonstrate they care about consumer privacy.
So, what can brands do to prove responsible marketing measurement practises that put the consumer first, and consequently reap the rewards of both positive brand perception and effective advertising?
Don’t rely on PII
Enhancing marketing effectiveness through the use of data shouldn’t require the use of personally identifiable information (PII), which distinguishes one person from another and potentially reveals individual consumer identities. After all, brands are measuring marketing not people. Assessing marketing performance at a more aggregate level, rather than looking at specific individuals makes data more actionable, and should be the preferred approach for responsible marketing measurement. Granular marketing optimisation at audience segment, channel, and tactic level can be achieved through multi-dimensional measurement, without the use of PII.
Guard against PII data sharing
In addition to ceasing the use of PII for marketing purposes, businesses should also implement internal tools to guard against unintentionally sharing consumer identities with third parties. There are various tools available designed to flag when PII data is about to be inadvertently divulged. Data shared with third-party marketing vendors should be consolidated, enriched, and transformed into anonymous user profiles. Where the use of PII is unavoidable, robust controls, including encryption and – ideally – salting techniques, are vital to protecting consumer privacy.
Provide the opportunity to opt-out
Precise targeting of advertising using data, such as age, gender, location, and income level, can have mutual benefits for brands and consumers. While the brand reduces wasted advertising by ensuring ads are only delivered to people who are likely to convert; the consumer benefits from more relevant, creatively optimised messaging. One-in-seven users of ad blocking software say they would be less likely to block ads if they found them more relevant.
But, despite the consumer benefits of targeted advertising, everyone should be given the option to opt-out of sharing their personal data. Brands should have a clear and accessible privacy policy and an effective opt-out process that applies across all channels and platforms. The new EU privacy laws – first established in 2014 – are expected to broaden the user’s right to be forgotten so that consumers can request all their data be deleted as soon as they close an account. With consumer choice playing a key role in brand perception, brands must review and refine their opt-out and data deletion processes to ensure they are up to scratch.
Be smarter about retargeting
Retargeting is used to boost online conversion rates, but is often perceived as an annoying or invasive form of advertising. Everyone can relate to being followed around the web by endless ads for a product they viewed online but have no intention to buy. Instead of blanket retargeting of all website visitors, marketers should combine advanced modelling techniques and audience segmentation data to identify and target visitors with the highest propensity to covert.
This approach, referred to as predictive segmentation, allows brands to identify and score consumers who are more likely to buy based on past behaviour, and to serve them relevant, timely messaging. While retargeting only applies to a small pool of consumers who have recently visited a brand’s website, predictive segmentation leverages the brand’s entire universe of users and targets individuals based on their propensity to convert – increasing the reach of this tactic. Using predictive segmentation, instead of retargeting, can help avoid a reputation as a brand that stalks consumers around the web.
Simply complying with the latest privacy legislation is not enough to reassure consumers that their data is being used responsibly. By following these simple steps, marketers can show they are serious about protecting consumer privacy, demonstrate responsible marketing measurement, and track their way to positive brand perception.
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