How can Marketers get Consumers to share their data in this heightened privacy world?
Updated: Apr 25, 2022
Web-based cookies that have helped marketers target and engage their customers online with relevant advertising content are now being restricted with more stringent, global privacy laws – Facebook has already done this (and many small businesses suffered the change) as have Firefox and Safari, with Google planning for mid-2023, at which point 3rd Party cookie use will have died.
Other tracking methods are also under pressure. In the mobile-app space, Apple requires app providers to get explicit permission from consumers before tracking them through device identifiers. McKinsey estimates only 46% might agree to.
Marketers need to find alternative ways to target their audiences. The most beneficial of which is getting first party data directly from consumers using their own consumer touchpoints.
Their challenge is that Consumers are increasingly skeptical of what brands do with their information (57% believe they are selling it!) and want to ensure they get meaningful value back for their personal information, “what’s in it for me?”. Brands need to get this value proposition right, be transparent and overcommunicate what they are doing with the data and how it will improve consumer experiences.
A BCG and Google study (Jan’22 report) provides learning on how brands should get consumer information:
WHAT DATA TO ASK FOR: people are more likely to share their gender, age, zip code, and email addresses and not their phone number, location, or online browsing activity
WHO TO ASK: segments differ in what they are willing to share: Gen Z, new parents and urban professionals are more willing to share information, while wealthy and retired people are less so.
WHAT CONSUMERS WANT IN RETURN: Cash is (always!) king, so discount incentives work best, but people are also interested in more convenience, exclusive access to products and personalized experiences. They don’t care for newsletters.
As importantly — brands need to USE the data they gather! A March’21 BCG study noted: “while some brands have been able to gain a competitive edge from their investments in first-party data, many have not… only about 30% of companies are creating a single customer view across channels, and just 1% to 2% are using data to deliver a full cross-channel experience for their customers."
Lots of opportunities to both gather and apply data in better ways.