Leveraging Privacy for Growth in 2021

Leveraging Privacy for Growth
leveraging privacy growth

Leveraging Privacy for Growth in 2021

In today’s experience economy, companies increasingly use data to improve the customer experience and move customers from consideration to purchase.  However, consumers are wary of how companies use their personal information.  They’ve seen their information exploited for financial and political gain.  And while they demand a better experience and understand that data is required to deliver on that promise, they wish to conduct more of their research before contacting sales or offering personal information.  According to various studies, more than half of the buying process occurs while visitors remain anonymous.

And then, in 2018, GDRP became law in Europe. And now the CCPA in 2020.

Regulators can now impose financial penalties on companies that fail to meet new privacy compliance regulations.  But more importantly, due to media coverage about privacy and data breaches, consumers are much savvier.  They can end their relationship with companies by not disclosing personal information and withholding consent for email marketing.  And they can always stop any further automated nurturing by clicking on a single word, unsubscribe. If customers control access to their personal information, how do you adapt your approach and leverage privacy for growth?

Building Trust Through Compliance

Most organizations today invest substantially to improve the customer experience, increase personalization, and execute cross-channel orchestration.  Each requires data to work correctly.  In the face of new compliance regulations, the common perception is that less information gathering might occur.  But for customers who DO give you information, it will be more precise.  This trade-off is a vital component of building trust through compliance.

The best email campaigns are about timing, delivering the right message at the right time. It’s the same for privacy compliance. The best time to ask for consent is not when browsing and researching your products and services. The correct time to ask for personal information is when customers engage with your brand.

One good example is Disney+ and its new subscription streaming service.  If you sign up for a free trial, they collect just enough information to get your trial subscription started, ask for permission to contact you about other marketing activities, and disclose the purpose of data collection.  There are also prominent links to their privacy policy and subscriber agreement.

Even if the user does not OPT-IN, they may do so in the future. And nothing is preventing Disney from making a similar offer in the future. Because they lead with privacy compliance, the customer is more likely to trust and provide more data and potentially OPT-IN more often because they have a genuine interest in their products or services.

Disney+ Sign Up Form

Building a Foundation for Trust

It does not require a significant investment to improve the customer experience by asking for permission at the appropriate time.  But you need a flexible framework that ensures you collect the correct information. At a minimum, you need their location to determine jurisdiction, and if consent was granted or not. And don’t forget that each jurisdiction may have dramatically different rules and procedures; your privacy compliance framework must be sufficiently flexible to accommodate those requirements.

Of course, you could make some ad hoc changes to your existing systems, patch them up, and push them out there, creating a minimum-viable privacy solution.  And this may be your current, budget-friendly plan. The problem with this approach is that it’s a time bomb.  At the very least, the cost of ownership of your marketing automation solutions will grow as each new legislation requires more and more detailed changes.  But in the worst-case scenario, and more importantly, you could lose the opportunity to create deeper trust with your customers.

Privacy Compliance Solutions from 4Thought Marketing

4Thought Marketing offers 4Comply, a privacy compliance API Solution that makes it easier to add privacy to your existing applications without building everything from scratch.  4Comply supports consent management and data subject requests and compliance reporting.  The whole process is made even more manageable through the 4Comply Dashboard. So, in the future, you can accommodate critical changes to legislation through simple administration and not expensive coding. Additionally, our Privacy Compliance experts are on hand to ensure a smooth transition and answer your marketer’s questions.

To find out more about how you can turn data privacy compliance into enduring customer trust and loyalty, download our free eBook, “Achieving Trust Through Compliance. A Marketer’s Guide to Customer Data Privacy.”

Download Achieving Trust Through Compliance: A Marketer’s Guide to Customer Data Privacy”