According to a recent survey, 40% of marketing executives conveyed that a lack of legal clarity is a barrier to implementing stricter privacy practices at their organizations. While we understand the ambiguity of today’s data policies – especially with COVID-19 causing delays and distractions – marketers must be as proactive as possible about data privacy. Here’s why:
1. CCPA is active and enforced.
The California Consumer Privacy Act (CCPA) went into effect on January 1, 2020, and enforcement began in July. While COVID-19 may have seemingly put CCPA on the backburner, experts say it is “expected to prompt a ripple effect across the U.S.” with marketers identifying data privacy as one of their important issues for 2021 and beyond. (source: WARC) Some say that the misuse of consumer data under the new CCPA regime can have catastrophic effects, which is why it is important to keep it top-of-mind.
2. Offering data and privacy solutions sets you apart from other companies and does some of your B2B marketing for you.
By considering CCPA and other privacy best practices when planning your marketing strategy, you are indeed impacting your branding in a positive way. Since customers want to be more informed and engaged when it comes to data, it will fall on brands to effectively explain their practices. The more transparent, the better. With consistent communication about data usage and privacy options, brands will earn customers’ trust. Customers continue to shift their behaviors and brands that are respectful of data and privacy issues will be rewarded with loyalty.
3. Consumers are increasingly interested in how their data is being used, so you want to get ahead of it.
The Pew Research Center reported that “data privacy is the primary concern for online consumers” with 79% saying they’re uneasy about how companies are using their data.” As we know, digital adoption and online usages have increased throughout the pandemic. eMarketer reports: “increased online activity during the pandemic will [actually] make consumers leerier.” Customer expectations that a brand shares its data-use practices are growing stronger, especially for digital users.
4. Protect your brand as technology quickly evolves.
Experts continue to warn that companies should expect to be scrutinized more closely, especially when it comes to any data surrounding personalized marketing such as transaction data, location and device data, and behavioral data. (source: WARC) The more informed that a brand is (along with the customers they are serving), greatly mitigates risk and negative reviews.
5. The rise of partnerships means shared databases.
Partnerships have been rising in popularity for the last few years but seem to make even more sense for brands during the pandemic and in the future. Successful retail collaborations “can generate up to 10% in operating margin improvements.” (source: In-Store Implementation Network, Myagi) While impactful, before embarking on a new partnership, it is useful to determine how each company handles data.
Ultimately, respecting the privacy of a consumer is crucial. In our current environment, it is necessary to hold onto your customer base while increasing your acquisition efforts. Managing privacy issues proactively and transparently will engender loyalty and help brands retain their hard-won customers.
If you are interested in how we build our clients’ marketing campaigns while keeping privacy top-of-mind, please do not hesitate to reach out. Your success is our success.
Executive Vice President
Research provided by Ask Wonder. Additional sources include Interactive Advertising Bureau, New Breed Revenue, Glossy, and Clock Tower Insight.