Marketing strategies have undergone a significant transformation in the evolving digital landscape. Businesses can create highly tailored experiences that resonate with individual preferences by leveraging customer data.
However, this shift toward personalisation has brought privacy concerns to the forefront as consumers grow increasingly cautious about how companies collect and use their information. As a result, marketers must find a balance between delivering personalised experiences and upholding stringent privacy standards.
The value of personalised marketing
Personalisation tailors interactions to meet individual preferences and needs, making each customer feel uniquely valued. For instance, a survey in the Asia-Pacific region found that 30 per cent of respondents felt an increase in trust toward brands that effectively used technology to personalise their experiences.
This marketing approach can take various forms, such as product recommendations and customised email marketing campaigns. These methods improve the shopping experience and strengthen the customer-brand relationship.
Respect opt-in and consent
Obtaining explicit consent from customers before collecting and using their data is crucial in today’s privacy-conscious environment. This practice aligns with legal requirements, and fosters trust between consumers and brands.
Interestingly, research shows that 71 per cent of consumers expect personalisation and will disclose their data to receive targeted messaging that aligns with their interests and preferences. Prioritising explicit consent helps companies comply with privacy laws and build stronger customer relationships.
Understand that transparency is vital
Being open with customers about collected data and its usage offers numerous business benefits. This transparency builds trust, which is critical to client relationships, as it reassures people that companies handle their information with care and respect.
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Moreover, customers who understand how their data contributes to personalised experiences are likelier to feel valued and see the relevance of sharing their information. Such openness aligns with ethical practices and compliance with privacy regulations and enhances consumer loyalty and confidence in the brand.
Use data wisely
Businesses should focus on collecting only the essential information to enhance the customer experience and use data effectively for personalisation without violating privacy boundaries. Implementing robust data governance policies, including who is responsible and what tasks they perform, helps boost consistency and efficiency in data management while reducing confusion.
Anonymising and aggregating data can protect individual identities while providing valuable insights for personalisation strategies. Moreover, giving customers control over their information — like options to opt out of data collection or customise their personalisation settings — can further guarantee personalisation efforts are respectful and transparent.
Invest in privacy-friendly technologies
Adopting technologies that enhance personalisation and safeguard user data is essential for modern businesses aiming to deliver exceptional customer experiences without compromising privacy. AI and machine learning can analyse behaviour and preferences in real-time, offering personalised recommendations while securing individual information.
Blockchain technology offers another layer of security, enabling transparent and tamper-proof storage of customer data. Encouraging such technologies guarantees businesses can build trust and loyalty by demonstrating a commitment to protecting their information.
Regularly update privacy practices
Regularly reviewing and updating privacy practices is crucial for businesses to stay aligned with evolving regulatory changes and shifting customer expectations. This proactive approach ensures compliance with the latest data protection laws, which can vary across different regions and over time.
Keeping privacy policies updated demonstrates a commitment to data security and respects customer privacy, enhancing trust and credibility. By staying informed and adaptable, businesses can effectively navigate the complex landscape of privacy regulations.
Focus on value exchange
People are more inclined to share their data when they perceive clear value is crucial. This exchange of information for personalised services or benefits can enhance the customer experience.
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However, a notable concern is that 45 per cent of consumers distrust companies handling their website behaviour or cookie data, highlighting the need for transparency and value in data exchange practices. Businesses that effectively communicate the benefits of information sharing can mitigate distrust and encourage a more open and mutually beneficial relationship.
Leverage anonymous personalisation
Behavioral data — like purchase history or website interactions — can tailor recommendations and content that resonate with individual preferences. Contextual data — like device type or location — refine personalisation by adapting experiences to the customer’s current situation.
Companies can guarantee personalisation efforts are not intrusive and maintain customer anonymity by focusing on anonymised or aggregated data. This approach maximises the relevance of personalised content and offers without directly accessing or exposing sensitive personal information.
Personalise with security first
Businesses must prioritise the security of their data infrastructure to safeguard against breaches and unauthorised access as the sophistication of cyber threats evolves. For instance, in 2022, Vietnam experienced a high frequency of phishing attacks, impacting over 17 per cent of its internet users.
This statistic underscores the prevalent risk of data security threats worldwide. Investing in advanced security technologies — like encryption, multifactor authentication and continuous monitoring systems — lets businesses create a secure environment that protects customer data from such attacks.
Balancing personalisation and privacy in marketing
Marketers must adopt these strategies to enhance their marketing efforts and protect customer privacy. Balancing personalisation with privacy considerations helps businesses build deeper trust and loyalty among their audience, improving consumer relationships and brand reputation.
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