Digital transformation and online devices have made consumers expect personalized content. While it is true that users want personalization, there is no consensus on which tactic is most effective. Although users wish to receive relevant content, only 29% of them believe that providing more data leads to better products and services.
For personalization to take place, brands need data to customize the user experience. What about privacy? A 2019 RSA data security and privacy survey found that the majority of European consumers fear losing control over their information.
More importantly, the ethical use of personal data is essential to ensure a good relationship between a brand and the consumer. Today, data, technology and advertising are irreversibly connected. To have access to this information allows a brand to know their customers. However, when companies use this data to promote fake advertising, it’s when the customers’ concerns arise.
According to a recent Forrester study, four main variables determine how people think about privacy:
- Availability to share information
- Privacy awareness
- Behaviours around data protection, and
- Comfort level with data economy.
Use and abuse of data
For example, most companies struggling with personalization. The reality is that customers will be happy to share a lot of information if they get much more from the relationship. Often, clients of cosmetic or health care tend to provide personal details to better adapt to recommendations and advice.
But, this does not mean that the use of data shouldn’t take into account privacy and security. In fact, there is a thin line between the use of data and the abuse of data, and the act of balancing involves taking into account the perceptions of customers along with actual practices.
In conclusion, by 2020, companies that strive to understand customers and build a data strategy accordingly will do well. Therefore, by gaining access to the data, and using them to benefit themselves and the customer, and maintaining the trust of all kinds of concerned parties. The success of personalization is guaranteed.