Insight

Trust, Not Data, Is the New Currency

Consumer perspectives surrounding data collection are shifting dramatically.

Over the past decade, the way in which companies collect and use personal data has changed significantly. While individuals may actively agree to share certain information, such as signing up for a supermarket loyalty card, other data may be inferred or collected without consumers’ knowledge or consent.

Recent global events, such as the pandemic, have prompted many people to interact, transact and spend more time online. Yet as consumers grew increasingly comfortable online, their awareness and concern about data collection also increased, exposing feelings of vulnerability and raising important questions of value and integrity. Many consumers (61%) feel uneasy about the extent to which their personal information is captured and used and have called for more control over their data.

This shift in perspective may affect businesses as they need to adapt their data collection and storage to maintain the loyalty and trust of their customers.

As a marketer, it’s impossible and unwise to ignore the increased noise surrounding security and privacy. The demise of the third-party cookie and recent legal developments in data privacy and consent are shifting the attitudes amongst businesses and consumers, with many demanding to take back control of their own data.

Establishing a value exchange with the customer is critical.

The big questions for consumers remain: should I share my data, what do I get in return, and is my data secure?

At Publicis Sapient, we see companies no longer deciding if personalization is needed but rather how and when. To deliver superior personalization and meet consumer expectations that lead to customer retention and loyalty, marketers require data such as preferences, buying history, and buying patterns.

Organizations can collect this data through loyalty programs, subscription services, and trackable online accounts and, in return, offer customers unique discounts, streamlined online shopping experiences, and other perks. This creates a mutually beneficial value exchange, strengthening customer relationships by providing personalized interactions using their data. (For a deeper dive into value exchange, check out Optimizing the Data Value Exchange.)
 

Accessing customer data requires trust.

As privacy regulations become more stringent and the use of third-party cookies declines, businesses must prioritize first-party data collection to restore transparency and control over individual data.

It is estimated that companies will have an astonishing average of 18 data sources in 2023. Such a large pool of data from so many disparate sources brings great responsibility. UK and EU data protection laws, such as the General Data Protection Regulation (GDPR), grant consumers the right to request the deletion of their personal data, the right to access and receive copies of their data, and the right to manage their preferences across channels. Failure to comply with these laws can result in costly data breaches and fines for companies. To build durable and personalized digital relationships with customers, organizations must establish first-party, identification-based relationships that allow for measurement and efficiency.

It is essential for companies to understand their customers and work to build loyalty over time to facilitate long-term success. Establishing a first-party data approach based on a mutually beneficial value exchange with the customer helps foster trust and strengthen relationships while future-proofing the business by ensuring it is well-positioned to adapt to changing customer needs and preferences.

Marketers have a critical role to play in delivering on the company's brand promise, protecting data privacy, and promoting brand trust with customers. Trust, not data, is the new currency.

How can a CDP help companies secure their customer data?

A customer data platform (CDP) is software that collects and unifies data from multiple sources to build a single view of each customer to be activated and orchestrated across channels. Unified customer data can unlock huge revenue potential and increase customer lifetime value when handled correctly. In a previous article, we discussed how a CDP can support a 1st-party data strategy and consistent, connected customer experiences.

In today's consent relationship economy, customers expect a personalized experience in return for their data. It's important for businesses to not only provide this superior experience but also to ensure that the data they collect is secure and that consumer preferences are respected. Salesforce Customer Data Platform (CDP) recognizes the importance of data protection, privacy and compliance and includes built-in features to help businesses stay compliant with consumer privacy laws. By capturing and activating both known and unknown data with consent, businesses can confidently build customer relationships founded on trust and transparency.

A well-executed CDP can help in several key areas related to data protection and privacy:

1. Right of disclosure: the CDP should be able to extract data completely or over a certain period, allowing customers to request an overview of their data.

2. Right of erasure: allows companies to remove all data upon customer request or in accordance with local data privacy laws.

3. Cross-channel consent: allows companies to handle channel-based consent, such as opt-ins, opt-outs, and preferences, in a unified manner. Salesforce’s consent objects support streaming of consent-related data to ensure one single source of truth. These can be respected on segmentation and activation in CDP. This scalable model enables businesses to store consent centrally and comply with relevant data protection and privacy frameworks.

4. Remove data silos and restriction of processing: enables a business to more quickly identify and access the source systems where customer data must be erased or processing is to be restricted.

Does your organization have a 1st-party data approach?

Forward-thinking companies are already preparing for a cookieless world, as those that lag may risk being left behind. One way to ensure success in this new landscape is by implementing a customer data platform (CDP). A CDP allows businesses to collect, manage and activate customer data in a way that delivers personalized experiences at scale and fosters long-term trust and loyalty.  And just as importantly, it empowers companies to be the stewards of data privacy and champion brand trust in the fiercely competitive marketplace.

At Publicis Sapient, we have over a decade of experience building and implementing innovative game-changing CDPs. Let us help your organization succeed in this changing digital landscape