Personalization and Privacy Can Live Under One Roof

Isn't it always the case? Still—more than ever, perhaps—consumers seem to want it both ways: “My data privacy is super important to me, and I expect a personalized experience wherever I encounter your brand.” It’s hard to fault customers for wanting to have their cake and eat it, too. It’s up to brand marketers, then, to respect these two seemingly contradictory expectations in order to secure customer loyalty. Luckily, I’m a firm believer that privacy and personalization can have a happily ever after. The consumer dilemma There’s clearly an internal tug-of-war going on between people’s desire for a relevant, frictionless experience and their reluctance to trust that brands will do what’s right with their data. That’s the big takeaway from a recent consumer survey from Braze in partnership with Dynata. Nearly half of respondents (49%) said that data privacy, or feeling their data is protected, is of more value to them than personalization. Yet more than half of those surveyed (53%) said they expect a unique and personalized experience every time they engage with a brand. A New Era of Community Building Needs a New Model The key word that points to a solution is “trust.” Brands and their marketing teams must earn customers’ trust in order to resolve the customer’s dilemma. Instead of hiding behind a smokescreen of legalese, use natural, conversational language around opt-ins. Before you ask for information, make clear what’s in it for them. Be open and upfront about what users can expect in return for sharing their information. And follow through on whatever you promise. The barrage of pop-ups and checkboxes people face before getting where they want to go is also daunting. Study findings indicate that almost half of consumers (47% of respondents) are most likely to “accept all cookies” on a website, but nearly everyone (91%) always or sometimes opt in to “do not track” prompts in apps. That’s another seeming contradiction. The obstacle is partly a lack of understanding on consumers’ part of what cookies do and how to manage them, as some (24%) admit it’s just too time consuming to find how to opt out and still use the website. In an effort to comply with evolving regulations, it’s clear that marketers may be unwittingly frustrating and alienating their own customers and prospects. And without gathering data to understand who a consumer is and what they are interested in, brands will struggle to build unique experiences for users each time they come back. There is a solution There are basically three ways for marketers to learn what their customers care about. You can ask people to tell you what you want to know, through opt-in form fills and preference centers.You can gather insight from paying attention to what a user’s behavior signals, like what they’ve browsed or saved or left behind in an abandoned cart.You can sniff around on the internet by paying third-party services for information, following users as they go about their online business. We’ve already discussed how the first approach can be derailed by customer ambivalence about sharing information, and the unwillingness to invest the time to understand complicated opt-out messaging. The third strategy is getting riskier and more challenging as tracking cookies are phased out across platforms. I also believe it’s the third-party approach that has done the most to erode customer trust. Chasing customers across the internet with display ads for the last thing they purchased is not confidence-inspiring. That leaves the middle way: Listen to what customers want by paying close attention to what they do as they engage with your brand. This valuable trove of first-party data will provide insight and understanding about consumer preferences. Then you can act with confidence by sending messages that matter. Why You Should Care More About Customer Satisfaction Than You Currently Do Brands that get it right Entertainment brands have gotten the message. Just think about how the end-of-year Spotify Wrapped campaign got us all to share our music listening data with each other. Streaming services pay attention to what viewers watch and make recommendations that can lead to happy discoveries of new shows to enjoy. HBO Max took it to another level when they wanted to better understand their Latin American subscribers’ preferences by combining both the first and second approaches listed above. Having earned viewers’ trust with their overall product experience, the marketing team introduced in-app message (IAM) surveys that invited show fans to weigh in with their favorite characters (or players, in the case of Champions League soccer). Some survey IAMs achieved 50% participation, and CRM comms in general saw a 40% lift in performance. Critically, HBO Max Latin America benefitted from a 15% jump in engagement and churn prevention. Give the people what they want Our recent study findings underscore the good news. More than half of those surveyed (52%) are motivated to share information in order to access loyalty programs or other brand perks, and 37% will pass along data so that their communications and experiences are as personalized as possible, like the way HBO Max asked them about their favorite show. Create a virtuous circle of growing trust by providing value, delivering on what you promise and treating customers with respect. They’ll reward you by coming back for more. Begin With the End: Reverse Engineering a More Personal Brand Experience