Data privacy remains consumers’ top concern and they are demanding brands to take a stand.
One of the leading marketing companies, The World Advertising Research Centre (WARC), reports that regardless of the medium chosen, consumers globally share concerns on how their data is being used. Research has shown that 44% of consumers limit their online footprint and 27% are using ad blockers to mitigate these concerns. Trust has significantly fallen in the past 2 years in light of the 2018 Facebook Cambridge Analytica data Scandal.
The 2018–19 annual report from the Office of the Australian Information Commissioner (OAIC) shows privacy complaints rose by 12%, with data use, disclosure, security, access, collection and the quality of personal information as the most common complaints raised.
How can marketers respond to this continuing onslaught? There are two points to consider. The first is to comply with the Strictest Privacy Laws, you will also need to consider that overseas laws could be applicable to your brand’s website or app. For instance, the California Consumer Privacy Act and EU GDPR could potentially apply in addition to Australian law even if you do not reside in that country.
If your service targets users from those particular regions or if you base your operations or servers from there these laws may apply. The safest solution is to ensure you adhere to the toughest privacy laws by working with your Chief Privacy Officer or privacy-minded agencies.The second point to consider is to build a solid trust foundation for consumers and be a better data-driven marketer. Consumers calling for data privacy can play a crucial part in establishing trust within your business. Now and in the not-so-distant future, consumers will expect more protection from companies they entrust their information to.
Building trust is a timeless concept that can pave the way forward with your consumers. In a traditional brick-and-mortar business, poor security investments can lead to theft and countless families can lose their life savings if personal data is exposed to the wrong people. In this digital age, poor data protection investments can lead to digital thievery, personal identity theft, and ultimately loss of public trust.
Data privacy compliance regulations can be summed up by the words of Ashley Stirrup, chief marketing officer for Talend:
“Customers want to know that if they’re willing to share with you their data, they want to know that they can trust you, that you’re not going to use it for the wrong purposes, you’re not going to resell it and you’re not going to give it to the wrong people.”
Stirrup added that you should use these privacy laws to become a better and trusted data-driven marketer. To be data-driven is to be customer-centric – putting their interest first. This means using their data collection, such as consumer behaviour and personal contact details, should be used responsibly- namely, to provide better content targeting and help shorten the buying cycle. The buying cycle shortens when the customer gets the right content, at the right time, at the right place. All of this information is based from data that the business has accumulated throughout its relationship with consumers.
If you need to retain your customers’ trust, then you need to be taking regular, deliberate action in digital ethics and use the data for responsible marketing.
If you are looking to become more aware of privacy laws we’d love to have a chat.