The implementation of GDPR regulations by government institutions, which profoundly modifies the data collection ecosystem and the progressive elimination of third-party cookies, have generated certain fears on the part of advertisers and digital marketing professionals, as to their ability to target consumers.
Consumers are increasingly interested in how companies collect, use and protect their personal information. Rather than perceiving these changes as a threat, marketers should take advantage of them and make the protection of their customers’ personal data a vehicle for creating value and trust. This data that consumers have consented to give, will stimulate more engagement and purchase.
A respectful digital world, supported by government institutions
A digital world that values consumer privacy implies that the strategies, technologies, tools and solutions deployed by a company make it a point of honor to respect the confidentiality and security of data.
To respond to consumer concerns, more demanding legal regulations such as the General Data Protection Regulations, or the CNIL, require more and more transparency in terms of data collection and use. This protection approach is now fully globalized.
If the collection of data has long generated significant income, inexpensive and never controlled, legal changes however take time to operate. Only a third of customers think companies use data responsibly. Indeed, consumers care more than ever about how companies handle their data. Nevertheless, some industries have always taken a data-driven – first-party – approach when it comes to building relationships with their audiences. NGOs and associations have always used the data collected directly from their donors for their marketing materials. While privacy is new to some companies, it’s not for all.
Thus, it will therefore be essential for companies to develop an approach centered on respect for privacy because the acquisition of new customers will be closely linked to the practices of companies relating to data processing.
How to anticipate its changes?
Certain marketing currents encourage specialists to develop stronger and more transparent relationships with clients. Focusing its strategy on data protection is set to become a competitive advantage in the years to come. The real question to ask is: how to prepare for the imminent arrival of a world regulated by data protection?
While these developments pose a significant challenge and complicate the way experts can target and reach audiences, it is imperative to rethink marketing strategies so that business growth does not come at the expense of consumer trust. consumers.
Research finds Gen Y and Z users would be willing to share more information to personalize their experience when done responsibly. Indeed, 63% of consumers believe that the personalization of online services is essential. In order to capitalize on respectful growth, companies must now exploit first-party data, which is being strongly revalued. Effective use can double the additional revenue generated by a single ad placement, or a single targeted action.
To go from a concept to an efficient implementation, the piloting of a CRM with a scalable and ergonomic architecture is the most important step. Confidentiality interface, new infrastructures, secure data storage or even the addition of consent banners, these elements will allow marketers to devote more time to developing a premium customer experience.
A CRM will collect, track and analyze data while providing customers with full transparency and certainty that their information will be used to provide a more optimal user experience. All in full accordance with the legislation in force.
Protection of personal data and performance: a tandem that works
It is entirely possible to combine data protection and performance within a company. Companies that value data privacy have seen a 270% ROI on their investments via their performance indicators.
If the collection of personal information is slowed down by government institutions, the extraction of first-party data is the only way to ensure the continuity of the business strategy: this data, voluntarily transmitted by consumers, will allow to be at the heart of the customer, to better understand his expectations, while establishing a relationship of trust.
Change is not always obvious. For marketing teams that have relied for years on third-party data for their advertising strategies, it will take time to adjust to this “new normal” in privacy. However, this evolution should make it possible to gain the confidence of the customers rather than to lose it: thanks to conformity and transparency, the company will be a pioneer of the marketing of tomorrow.