In today’s highly competitive marketplace, data privacy issues have become a significant concern. While some customers are happy to share their information to experience personalized offerings, others are highly uncomfortable about data collection. Today’s data-driven marketers can easily access customer data with the use of marketing technology. But, are customers satisfied with data sharing? Well, a recent survey states that almost 95% of consumers are worried about data privacy.
This has put data-driven marketers under tremendous pressure. Marketers are watching new ways to meet their customers’ needs and requirements without access to their data. Thankfully, various marketing technology can enable data-driven marketers to personalize communication while respecting data privacy.
Let’s find out more about the data privacy challenges in today’s marketing world.
What’s New in Consumer Privacy?
The data privacy and protection processes were revamped over recent years. The new data privacy regulation act called GDPR was proposed in the European Union. General Data Protection Regulation or GDPR Act allows users to opt-in for data sharing with businesses. It has significantly impacted data-driven marketers as they cannot collect data from all their target customers. Similarly, California passed another Act called the California Consumer Privacy Act (CCPA), demanding customers’ data privacy rights.
As a consequence, various leading companies have taken new steps to protect data privacy. The famous brand Apple recently changed its data collection strategies, forbidding marketers to engage with consumer data. Firefox also blocks customer data tracking cookies by default, and DuckDuckGo was able to surge traffic by 40% by increasing privacy for its users.
Data-driven marketers are looking to leverage marketing analytics solutions and increase spending on protecting data privacy owing to these pressing data privacy concerns. On the contrary, businesses are concerned about how to keep pace with personalized marketing. Some businesses will be more challenged regarding data privacy concerns, and the marketing team will be the most affected.
Why Must Marketers Be Concerned About Data Privacy?
The recent changes, such as the California Consumer Privacy Act and General Data Protection Regulation, have hardly hit the marketers worldwide. Recent research shows that data privacy is a significant concern faced by two out of five marketers worldwide. The increased concern about consumer privacy has even made some of the marketing technology investments obsolete. Nowadays, marketers are unable to gather and build robust strategies based on the data. The only option left with marketers is leveraging marketing analytics solution.
Will marketing analytics solutions combat marketers’ challenges? While a marketing analytics solution will help marketers reduce manual processes, it will not help collect valuable consumer insights. Besides, it would negatively impact their brand image and value. Even customers are likely to abandon a brand if their personal data is used without their knowledge. These data privacy concerns have made it difficult for marketing professionals to reach the right set of customers at the right time. Marketers are in a massive dilemma with consumer data privacy on one hand and marketing technology on the other.
Can marketing be mixed with Modeling?
Today, marketers face challenges in determining the marketing initiatives that drive profit and are merely wasting marketing spend. Marketing Mix Modeling or MMM can address this hurdle. MMM evaluates the overall effect that every marketing channel will have on sales and other performance metrics.
Leveraging MMM is vital for marketers to optimize ROI and plan both short and long term activities. Assuredly, marketing leaders require an insightful understanding of their marketing efforts to prepare future strategies. MMM provides marketers with quality data to drive the highest return on their investments.
While marketing mix modeling can enable marketers to prove the ROI of their efforts and facilitate superior sales trend forecasting, and it has several disadvantages. It lacks the convenience of real-time modern data analytics and does not analyze customer experience across multiple marketing channels.
How Can Marketers Combat Data Privacy Issues?
As modern customers take their privacy more seriously, marketers are under pressure to identify alternative ways to continue providing personalized offerings to their consumers. Consequently, many marketers are experimenting with marketing analytics solutions and different marketing techniques. Marketing mix modeling has also become a common tactic for marketers.
MMM measures the total impact that every marketing channel will have on sales and other performance metrics. However, marketing mix modeling cannot entirely tackle marketers’ challenges. It is because users respond to different channels differently.
To combat the pressing consumer data privacy hurdles, marketers will need a solid analytics model that gathers data from entire channels. Marketers demand a solution that processes large volumes of data at times of need. Experiment with the new marketing tools and find the one that meets your unique business requirements.