Collecting and processing customer data is becoming more complicated as the volume of data grows.
Data overload makes it hard to get to a single customer view, but can also become a consumer trust and regulatory issue if data was not collected without the proper consent or user verification. Collecting and processing customer data is becoming more complicated as the volume of data grows and measures to combat data misuse follow.
Now with third-party cookies going away, and mobile devices limiting app tracking, marketers will need a way to correlate customer data across their brands to improve conversion and customer lifetime value.
Data silos and untrustworthy noise: Brands have long collected customer data across various channels. These include everything from web and mobile to various systems and tools, such as MarTech, eCommerce and customer care. The goal is to extract insights to enrich the experience. Unfortunately, even when the data is aggregated with a master data management (MDM) or customer data platform (CDP), it can become untrustworthy, outdated and non-compliant without a trusted source to verify its accuracy and legitimacy.Marketing teams face an increase in marketing fraud, for example in the form of bots.This uncertainty and level of untrustworthy data has several ill effects. It skews analytics. It negatively impacts marketing spend. And it can create a poor user experience, including slow response times due to influx of traffic, data breaches or account takeovers – all of which diminish trust. This additional noise creates a confusing and inauthentic picture of the customer journey. It is no longer clear to marketers who their real customers are and where they are potentially encountering problems.
Consumer Trust: Customers expect that their personal information will be kept secure but at least 44%, according to McKinsey, don’t trust that it will be. Research by IDSA found that at least 79% of organizations experienced an identity-related security breach in the last two years (and 99% of companies believed these were preventable). Customers have a heightened sense of awareness when it comes to data privacy. They will only share data and opt in to marketing programs if they are assured that their data is safe, used as intended while providing a benefit — personalized and convenient interactions.According to Jebbit, 62% of consumers said they prefer personalized products and experiences but a brand’s approach can make or break how that experience is received. For example, Jebbit reports that 54% said their trust in a brand decreases when receiving emails based on data they haven’t knowingly shared. Data that was collected in one channel and then aggregated into the customer profile without having secured the proper consent can drive this misstep. Companies that collect and manage data responsibly, securely and transparently gain an edge.
Data protection regulations: Data protection laws and regulations evolve all the time, usually moving toward stricter protection of users’ privacy. The mix of privacy regulation and users demanding control of their data creates new obstacles for data collection, ultimately impacting personalization. For example, the death of third-party cookies significantly reduces the amount of data an organization can collect, and first-party cookies do not paint a full picture.Regulations, such as the California Consumer Privacy Act (CCPA)/ California Consumer Privacy Rights Act (CPRA) in California, the far reaching General Data Privacy Regulation (GDPR) in the European Union (EU) and the Brazilian General Data Protection Law (LGPD) in Brazil, all require that customers grant access and consent to their data being collected and used. Compliance with changes, McKinsey warns, introduces limitations on what data brands can collect and what they can do with it. It’s not all doom and gloom as consumers are willing to opt in for more personalized, 1:1 experiences. Building trust into all customer-facing applications and channels, by providing convenient, secure, and contextualized experiences will be key.
40% of marketers had no idea how much of their web traffic was fake. 37% weren't sure how many of their database contacts were genuine.
Consumer interactions with online services make up the steps in a customer journey, and understanding this journey is key to fulfilling customer expectations. The wealth of data most marketing organizations collect can fill in the blanks to create a complete view of the journey, but it’s complicated.
Digital interactions are dynamic, and discovering and following consumer activity across different devices, different browsers, multiple-site or service visits, not only requires bringing these disparate data sources together in a single place to dive into the data as a whole but legitimacy needs to be established. Marketers need to trust that the data is accurate, and captured with the right level of consent to extract insights and take action.
Accurately identifying customers across platforms, devices, and channels, using verified, deterministic data can provide the bridge between the unknown and known and give marketers a powerful key to unlock consumer-friendly marketing.
