5 things marketers should know about data privacy in 2020

On data privacy day, CMO talks customer data privacy and how it could ultimately make for better marketing

3. The Australian Privacy Act/CDR

Le Roy told CMO the Australian Government has supported a review of the Privacy Act by the Office of the Australian Information Commissioner (OAIC) during 2020, to be completed in 2021. This will include the development of a new privacy law for companies that trade in personal information. 

“The updated legislation will increase the need for transparency around data sharing, as well as new rules that strengthen the need for consumer consent for collecting, using and disclosing personal information,” she said.

“The IAB supports initiatives that improve transparency on the collection, sharing and usage of personal data. Any change in privacy regulation needs to balance consumer experience and ensuring changes don’t place a significant burden on consumers or negatively impacts their user experience, as well as making sure that smaller businesses are able to operate in a way that is not too onerous in terms of resources.”

Talend A/NZ country manager, Steve Singer, said this year’s Consumer Data Right (CDR) legislation will make it easier for individuals to access and share their data from one organisation to another.

“The motivation for CDR comes from the Australian Government wanting individuals to enjoy higher rates of data portability. Rather than a service provider being able to tie down a customer by restricting access to their data, they will be compelled to make it available and in a usable form, thereby improving market competition,” he said. 

Diamond added legislation in Australia is adequate but most people sign away their rights to access the benefits of the platforms before actually reading the long terms and conditions document on how the company will use personal data. 

“The legislation is not the best way to regulate, as it tends to move quite slowly, a better way is for the market to self-regulate where possible, as it can evolve faster as compared to legislations put in by the Federal Government," he claimed.

“Unfortunately, the ad industry could have done a substantially better job of self-regulation. Still, It’s better if bodies like IAB take a leadership role to make advertising safer and better for consumers and it’ll then require lesser legislation. If you bring in legislation to get large organisations to comply, it impacts the smaller ones more as the large organisations have resources to work around these and end up benefiting from the reduced competition that eventuates. If the industry can't self regulate the government will need to step in.” 

4. Consumer communication

The onus of consumer expectations needs to be managed by better communication. While communication is a marketer’s business, the function has not typically communicated around collection and use of data. This needs to change. 

Glaser told CMO it’s important to communicate transparently and honestly with your customer base about your handling of data. He said marketers need to be telling customers about best practices, processes, certifications and breaches, as all of this builds trust and brand equity in the long run. He added using language to communicate with customers which simply conveys the agreement, is jargon free, and represents a company's brand values is vital and boiler plate legal jargon is not acceptable.

Ricoh Australia general manager of marketing, Tori Starkey, said customers demand personalised experiences that are seamless across all touchpoints, however they are increasingly concerned about providing the data required to provide it.  

“They are acutely aware of the value of their personal information and are demanding more control over how it is collected, stored and how it is used. This becomes increasingly difficult as more communications and interactions are automated," she said.

“Obtaining consent is often the first interaction a customer has with a brand, so it needs to be treated as more than a compliance issue. Marketing needs to understand building trust in the brand from this first touch is going to be imperative in gaining the trust required to deliver a CX in line with expectations."

Singer said data portability provides an opportunity for better customer experiences and CDR will make it easier for service provider marketers to offer a raft of new services to potential new customers. By being seen as innovative, they will be able to attract far more customers than they would lose. Again, communication will be key to articulating these data-led propositions.

Le Roy said consumers are increasingly aware of the value of their own data and as with any interaction with customers or potential customers, respect is important. 

“Marketers will start to shift from their current data collection and usage legal language which is often quite confusing and unclear, to a more consumer friendly understandable way of communicating," she said. "Companies will need to have increasingly sophisticated consent management regimes and platforms to manage the various regulation regimes and necessary consumer control of their own data.”

Roland said marketers must show they have the correct provisions in place and they are compliant with data privacy laws. 

“We're entering a new era of consent-driven and permission-led marketing. This means marketers must secure consumers' informed or explicit consent before they can leverage their data. A tick box exercise is no longer sufficient," she said.

"Marketers will need to be very clear about how consumer data is used, shared, stored, with whom and for what purposes – it's a new era of transparency that gives people more control - and this will build trust.”

5. Privacy makes for better marketing

Marketers could be forgiven for thinking all this spells doom and gloom for the marketing function. In reality, privacy compliance and the death of the cookie means marketers will have to get smarter about their marketing, which will lead to better marketing, personalised, contextual offerings and an overall happier consumer. 

Beveridge pointed out putting consumers first ties very well into marketing fundamentals, while Le Roy said being transparent around data collection and open about the reasons for any data sharing is just good business. 

“Respect of customers and a clear and transparent value exchange is vital to a positive brand perception. If people do not trust business practices or if they feel exploited, they are unlikely to engage with that organisation again,” she said.

Singer said while legal compliance is one dimension, another is trust. Companies will need to change culturally, and marketers will need to make transparency and trust central pillars of their data strategies, and then support this with the right martech systems. 

“CDR and the sheer value inherent in customer data means that 'the customer is king' mantra is back with a vengeance. Thanks in part to information mobility, legislation and the new channels offered by social media, consumers are taking charge of their relationships with business, rewarding companies that display an almost obsessive commitment to delivering an exceptional customer experience coupled with robust data privacy,” he explained.

Consumers are becoming much more aware as a result of the media attention from major breaches, driven by the legislative changes we’ve seen globally, Woerndle said.

“Customer data provides insights that enable significant business decisions that drive improved services, revenues, as well as cost savings. A loss of trust could wipe out your competitive advantage, and set your marketing intelligence, plans and business back by years," he continued. “Conversely, brands that pay due respect to their customers and their customers’ data can confidently drive their strategy forward.”

Third-party data is also in the spotlight for many. Reinhardt said marketers need to continue to move away from ‘data gossip’— using third-party data bought from data brokers usually without consumers’ explicit permission.

“Ditching unethical, third-party sources should not mean the end for the use of customer data altogether. Customer data should still be used to take the guesswork out of marketing, create thoughtful, personalised campaigns, and build amazing digital experiences, all of which customers crave," he said. 

“The distinction? The data used must be first-party, gathered and used with consent, respect and transparency. For marketers, the direction of travel is clear: cut your reliance on third-party data, and become more transparent about the use of customer data.

“In an age in which consumer trust is more valuable than ever, marketers must take data privacy seriously. If they don’t, they risk damaging their brand beyond repair.”

Roland agreed and expected to see a renewed focus on planning media based on contextual triggers in the post-cookie era. As Kantar research from late last year shows, site context and ad congruence can boost campaign impact significantly, he said.

"Brands should consider how they can align their approach to privacy with a broader brand purpose. Apple, for example, have stated that the company regards privacy as a human right – and are using privacy as a competitive differentiator.” 

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.

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