Ultimately, data helps brands build a personalized relationship with their customers. This is crucial, as 72% of consumers admit they only engage with marketing messages that are highly personalized and aligned with their interests.
To meet the personalization demands of customers, brands must be able to access their customers’ data. However, Microsoft reports that 55% of marketers feel they don’t have adequate data to execute effective personalization campaigns.
This is where the paradox lies. 97% of customers put a premium on data privacy. They want personalization. But also demand transparency and privacy.
A Salesforce report showed that 58% of customers allow the use of their data if companies are transparent. The problem, however, is that only 63% of customers believe companies are transparent with their customer data usage. If brands fail to display transparency as to how brands use their customers’ data, they are at great risk of losing customer trust.
In short, personalization is a tricky area that presents brands with a challenge, as well as a unique opportunity, to win their trust. Brands need to personalize their efforts enough to be relevant, without overstepping in a way that feels like they are prying. Customers want messages that feel tailored to them, but they want to feel like they have given permission to that tailoring.
How do brands solve this paradox? What is the best way to earn trust from customers when they are very sensitive to data profiling?
Ultimately, brands must adjust or rebuild their personalization models with their customers at front and center while adopting a principles-based approach anchored on data security and privacy. Brands have to provide customers the option to join their personalization program. This program should give customers control over the information they share or activities they engage in to realize benefits.
As data technologies continue to evolve, brands must leverage these emerging innovations to better protect and manage their customers’ data.