The changing landscape in consumer privacy has made all of us more aware and careful about data collection in our day-to-day lives. This widespread tension regarding the collection and utilisation of consumer data is poised to change the world of marketing as we know it today.
Consumers today prefer effective, personalised advertisements but are apprehensive to share their personal information. These growing concerns are being acknowledged and addressed through privacy restrictions and data protection rights.
In the digital world, data privacy is the right of consumers to delegate how third-party companies and organizations use their data. Personal, demographic data are just some information that may be disclosed. While these details help marketers create more personalised experiences, the majority of consumers are now concerned about their privacy being violated.
In India, there hasn’t been any data protection law in place, though in November of last year, the Ministry of Electronics & Information Technology issued a bill named The Digital Personal Data Protection Act, 2022 draft bill, which aims to enable personal data processing while recognizing individuals’ rights and “the need to process personal data for lawful purposes.” It allows cross-border data transfers with “certain notified countries and territories” and establishes a Data Protection Board to oversee compliance and impose penalties, stated not to exceed 5 billion rupees. The draft bill is open for public feedback for some time. This notice appears to follow the basic rules of convention, that is, to exercise data protection rights such as the right to know what personal data is being processed by whom, whether that data requires correction or updating, and the right to request deletion of data that is no longer relevant for processing.
The restrictions imposed by laws, as well as the consumer’s privacy concerns, must be considered. As these shifts in data protection occur, marketers must strike a balance between maintaining the trust of consumers and retaining their personal data. They’ll have to learn to recognize users’ privacy concerns and use that information carefully without jeopardizing the brand’s value.
As they say: “With great analytical ability comes great responsibility.” In the coming years, you should have a redesigned marketing strategy that maintains consumer trust while adhering to privacy regulations. Here are some of the measures that you can take while making your strategy
Plan means to collect First-party data
First-party data refers to the data that a brand collects directly from its customers through various sources such as its website, mobile app, or customer relationship management (CRM) system. This data can include information such as customer demographics, behaviour, preferences, purchase history, and more. This data is highly valuable for a brand as it allows them to gain insights into their customers and personalize their marketing efforts, as well as improve their products or services. Additionally, it also enables the brand to build direct relationships with its customers, fostering customer loyalty and retention.
Have Clear communication
It is essential in building trust with customers and ensuring that they understand how their data is collected and used. This includes being transparent about data collection practices and providing clear and concise information about data collection and use policies.
Offering value in exchange for data
Is an effective way to address data privacy concerns and encourage customers to willingly share their information. One way to provide value to customers in exchange for their data is by offering them incentives, such as discounts, free products or services, or exclusive access to content such as e-books, guides, or other resources.
For example, a company might offer customers a discount on their first purchase when they provide their email address, or they can offer customers access to exclusive content or special deals in return for filling out a survey. By offering something of value in exchange for data, companies can help to build trust with customers and make it more likely that they will willingly share their information.
Additionally, offering value in exchange for data can help companies to provide a better experience to customers. Offering personalization, relevance and tailored content and offers to customers can be seen as a benefit by them and they would willingly provide their data for that.
Another way companies can offer value, is by being transparent about how their customer data is used, and providing clear explanations about how the data is collected, stored, and protected. This will help to build trust with customers and make them more comfortable sharing their information.
Increasing transparency is also crucial in addressing data privacy concerns. This means being upfront and honest with customers about how their data is collected and used. This can help to build trust and foster positive relationships with customers.
Updating internal policies is crucial in addressing data privacy concerns. This includes conducting regular audits to ensure that data usage and security practices align with consumer-centric policies. It is important to have a comprehensive understanding of the regulations and laws that govern data privacy in order to ensure compliance and protect the rights of consumers.
An important aspect of data privacy is ensuring that personal information is collected, stored, and used securely and responsibly. This includes implementing strict security protocols, such as encryption and multi-factor authentication, to protect sensitive information from unauthorized access or breaches. Additionally, it is essential to have clear, transparent and easily accessible policies in place for consumers to understand how their data is being used and give them the option to opt out. Data Governance strategy and process are also in place to ensure that all data usage is compliant with legal requirements and regulatory standards.
Contextual targeting is a way for advertisers or brands to deliver ads to users that are more relevant and interesting to them, without compromising their privacy. Imagine you’re scrolling through your Facebook feed and you come across an article about the latest hiking gear. Using contextual targeting, an advertiser could show you an ad for an outdoor gear store or a camping equipment brand. This way you’re more likely to be interested in the ad you’re seeing, and the ad is more effective for both the advertiser and you.
Moreover, it’s worth mentioning that contextual targeting enables advertisers to reach out to users without collecting personal data, which is becoming a more important issue for many people. As more and more people are becoming privacy-conscious, contextual targeting can help to build trust with users by not collecting unnecessary personal information.
The shift towards data privacy has led to increased concerns about data collection among consumers. As a result, marketers must take steps to address these concerns while still providing personalized and effective advertisements. Contextual targeting, which focuses on the content of the webpage or app the user is currently viewing, can help to overcome these challenges as it does not rely on personal information. Additionally, marketers can also focus on collecting first-party data, clearly communicating their data collection practices, and offering value in exchange for data, to build trust with customers and adhere to privacy regulations. As the laws for data protection evolve, marketers need to stay updated and come up with new strategies to maintain consumer trust and stay compliant.
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