As the general public continues to become increasingly data-literate, topics of data privacy and how brands collect and use their customers’ data have developed into significant areas of concern.
Based on findings from Simon Data’s 2022 State of Data Report, a recent TechRepublic article examined five of these issues and their impact on marketers and consumers alike when it comes to the latter’s data. Below, we’ve compiled a breakdown of these concerns, including:
Growing Privacy Concerns
Eighty-eight percent of users want to allow consent of their data usage, but only seven percent actually know how companies use this information once they’ve given their consent. This confusion isn’t terribly surprising when considering the recent introduction of various regulations governing how companies collect and utilize customer data. Marketers have an opportunity to educate consumers about the data collection process and how this information will be used. According to TechRepublic, not only will this help assuage privacy concerns but it also has the potential to increase data sharing and result in better customer data.
Amount of Available Data
The past two years saw the creation of a staggering 90 percent of the world’s data. As AI, IoT, and other emerging technologies become increasingly mainstream, the amount of data available to marketers will continue to explode. The key to success is sorting through this wealth of information to find the most impactful data for the particular customer or campaign at hand.
Lack of Confidence in Usage
It’s easy for marketers to become overwhelmed by the sheer amount of available data. Lack of integration between technologies or sources is also a common challenge, and all of these issues can combine to undermine marketers’ confidence in data usage. To overcome this uncertainty, companies should consider creating a single view of all relevant data sets that can inform an intended customer’s behavior. This approach can help marketers build personalized campaigns based on historical and real-time data.
Heightened Customer Expectations
As consumers continue to allow marketers to collect more of their information, there is a corresponding expectation for more targeted offers. However, according to the Simon report, most companies fail to deliver on these expectations, so consumers don’t believe their information is being put to good use. If companies don’t take action to improve, this disconnect can lead to negative brand equity and damaged customer relationships.
Related to the trend above, it’s also important that marketers toe the line between targeted marketing and consumer discomfort. According to the Simon report, 75 percent of customers have found some form of personalization to be uncomfortable—something we’ve discussed previously at the APEX of Innovation.
You can read more about these customer marketing trends in this TechRepublic article.