In this guest post, executive director of data & analytics at Arq Group, Justin Parcell, discusses how companies can ethically use data in a tightly regulated environment.
Recently, the world’s largest social media platform celebrated its 15th birthday. As opposed to commemorating the various ways in which Facebook has progressively helped to globalise the world, majority of conversations were laser focused on the company’s misuse of personal user data.
Consumers have never been more aware and informed of the impact of data privacy on their personal lives. They are increasingly coming to understand the role data has to play in business, and they are demanding that organisations be transparent about what they are doing with the data they are collecting.
This is further amplified by the rise of data protection rules such as the General Data Protection Regulation, which is underpinned by the principles of accountability and consent.
In the retail sector for example, the concept of personalisation lies in delivering highly relevant communications and offerings to the right people, at the right time.
To achieve this, businesses need to collect a full spectrum of data, which could include your name, address, email, IP address, sexual orientation, religious beliefs and political views, amongst others.
Effective, yes. Efficient, yes. Ethical? Questionable.
At a time when consumers are more spoilt for choice than ever and where the concept of brand loyalty is slowly diminishing, businesses must be able to demonstrate transparent and responsible data practices in order to build and maintain consumer trust over time.
A recent Customer Loyalty 2019 Report by Gemalto found that retailers (62 per cent) are most at risk of suffering the consequences of data misuse, with Australian consumers prepared to avoid their business in future.
Australian consumers are also more likely than their global counterparts to walk away from a company (retail, financial, healthcare) that has experienced a data breach or are found to be misusing personal data, with over two thirds (70 per cent) admitting they would look elsewhere if the date collected from them was stolen.
Take for example Facebook, whose continual breach of consumer trust over the misuse of their personal data saw a decrease in users across all age categories and demographics in 2018.
The good news is, while consumers are quick to walk away from a company due to its track record with unethical data usage, they are also far more willing to have brands they trust consume and utilise their data to effectively market to them.
In fact, not only will responsible data storage and management improve consumer trust and strengthen a brand’s corporate reputation, it also has the power to bolster consumer engagement with a brand and in turn, help drive sales.
Ensuring that data storage and management is by design that recognises the consumer’s rights to that data and the privilege and responsibility that businesses have and take on is critical to establishing the appropriate processes and safeguards for its use.
Engaging consumers in a way that has been agreed to isn’t enough. Experiences need to continually demonstrate that businesses understand the consumer and deliver value to them. Granular access controls, clear accountability and robust processes that govern use are critical.
Ultimately, businesses see compliance regulations as an enabler rather than an inhibitor. If brands are compliant with all regulatory requirements and can demonstrate their commitment to transparent and responsible data practices, it will enable them to effectively take advantage of the consumer data available whilst upholding brand reputation.
Using and storing data responsibly and harnessing it as a building block for personalisation, could provide the opportunity for businesses to increase customer loyalty through a more streamlined, targeted experience for consumers. What’s more, proper data management will help streamline business processes and avoid unnecessary misuse of stock, staff and finances.
Independent experience agency The Misfits has recently announced a strategic partnership with cultural change and leadership experts Nancy Hromin and Kate Chaffer. While the company has for a long time operated in the space of creative services, digital and content marketing, film production and events, The Misfits is now broadening this offering to include business […]
TripleLift has today announced an expansion in their Asia Pacific (APAC) operations, with Henry Shelley [featured image] appointed as Managing Director, based in Singapore. Fueling TripleLift‘s expansion in APAC is its success in Australia, where the company works with 70 per cent of the top 50 comScore publishers. “As the home to several of the worlds’ […]
Rob Highett-Smith joins Fiftyfive5 in the newly created role of head of performance measurement. Performance measurement represents one of the three core offer areas at Fiftyfive5 with tracking programs running across 40 countries; representing our fastest growing capability pillar. Rob joins to lead this capability, which encompasses brand and comms tracking, multi market monitoring, CX and customer satisfaction, as well as other longitudinal programmatic work.
Podium has continued its international expansion today announcing its launch in Australia. Podium serves more than 90,000 local businesses in the United States, Canada and Australia, and has seen its customer base in Australia almost quadruple to over 3,000 local businesses since the start of the pandemic. Through its SMS-based platform, Podium helps local businesses receive […]
Commercial DAB+ hip hop and RnB station, THE EDGE has appointed Emily Copeland, to the newly created role of General Manager. Copeland brings an awesome mix of skills and experience to THE EDGE, including cross-platform media content experience, partnerships and events (including music festivals – remember those?). Copeland also has a stack of achievements to […]
Brianne West is the founder and CEO of Ethique, a New Zealand-based sustainable, plastic free and cruelty free skin and hair care range. West sat down with B&T to explore what genuine environmental sustainability looks like, and how brands can better respond to eco-conscious consumers. B&T: Why are we seeing a rise in eco-conscious consumption? BW: […]
Blis has today revealed its new Consumer Confidence Pulse — the most comprehensive tracker of its kind — this interactive dashboard builds on its existing trend data around consumer mood to analyse behaviour during the COVID pandemic. The dashboard also now tracks consumer movement over a rolling 13-month period, across 18 retail and lifestyle sectors […]
Following the success of Series One: Grey Nomads, Australian Seniors has launched the second series of the Life’s Booming podcast – Dare to Date. Hosted by James Valentine (pictured with guests Liz and Barry), Life’s Booming explores the incredible stories and addresses topics important to Australians over 50. Series two titled Dare to Date is a six-part series that covers real-life love, […]
World-leading conversational agency VERSA has bolstered its team with two senior appointments in response to growing uptake in conversational AI technology across various sectors. Vanessa Tout has been appointed global head of client partnerships and growth, while Michael Oso-Hughes comes on board as design director. Tout joins VERSA CEO Kath Blackham and managing director Michael […]
Engagement marketing agency, Banter, has hired Patrick Rutkowski as Creative Technologist, to further bolster the digital and innovation side of the business. Rutkowski joins Banter after having spent the last five and a half years at independent creative agency, The Hallway where he was most recently creative technologist working with the likes of Rheem, Tourism […]
Kargo has today announced several major growth milestones across the APAC region for the first half of 2021, more than doubling H1 revenue year-over-year with 115 per cent growth. Kargo also ran 41 per cent more campaigns in the region than in H1 2020 and the average campaign size increased by 32 per cent over […]