Personalization should not come at the expense of data privacy

Personalization is becoming increasingly critical to meet customer expectations. But changing consumer mindsets around privacy are making acquiring the necessary data a difficult and expensive process.

Personalization has been proven to increase sales, customer loyalty and customer lifetime value. Amazon’s quarterly sales increased 29% after the implementation of targeted recommendations, and 80% of customers are more likely to make a purchase when they enjoy a personalized experience.

But how can brands balance the benefits of personalization with their customers’ privacy concerns? The most effective strategies use zero-party data to drive marketing and sales, give customers power over how their data is used, and embed transparency and privacy into every department’s processes. Zero-party data is data that a customer voluntarily provides.

By relying solely on type zero data, you can avoid PR disasters and increase customer trust in your brand.

Additionally, companies that practice ethical and transparent data collection often collect more and better data. When customers feel their data is being handled ethically and responsibly, they are more willing to provide useful information.

Personalization: the optimal solution

Companies can demonstrate their commitment to privacy by describing how consumer information is collected and used, and by allowing consumers to manage their own advertising settings. Giving consumers more control over their data often results in more effective targeted advertising.

Personalized advertising creates a space where customer and company interests intersect. When brands allow customers to create their own experiences, they are better equipped to anticipate and respond to their demands. Perhaps this is why custom solutions are preferred by 36% of consumersand one in five is prepared to pay at least one 20% increase for them.

Create a corporate culture that values ​​confidentiality

In addition to role-based security and privacy training, some companies have developed Business Information Security and Privacy Officer (BISPO) positions.

BISPOs ensure that security is taken seriously by ensuring that employees remain informed about security and privacy practices.

To provide a safe and comfortable user experience, some companies have implemented a “dashboard”. This is an internal team responsible for regularly evaluating company policies and processes regarding the use of personal data.

They make sure that nothing the company does is too “scary”. These teams exist for a reason: more than 40% of consumers will stop doing business with a brand if they think its customization is unwelcome.

Understand the difference

Consumers collectively define the boundary between desirable and undesirable personalization. Crossing the line can be detrimental to the brand-consumer relationship, but successful companies know how to anticipate consumer reactions and work on them.


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