Evolved Marketing Strategies in the Age of Data Privacy

The ways organizations collect and use consumer data are changing. Increased regulatory oversight around the world coupled with greater scrutiny from consumers themselves has driven organizations to alter their data collection policies and practices. And while laws like the EU General Data Protection Regulation (GDPR) have been around for several years, there is a privacy renaissance in the U.S., where states are enacting new laws every year, and there have been multiple attempts to pass a federal law.

One common thread among many of these U.S. laws is a focus on an individual’s rights regarding third-party data sharing and targeted advertising. While customer data is a valuable asset, businesses face new challenges as a result of these privacy requirements due to the impact on a company’s customer activation strategies.

But where there is challenge, there is also opportunity. Rather than simply complying with new regulatory mandates, organizations can adopt a privacy-first approach to customer data. Although marketing teams will likely see reduced volumes in the data they collect, a privacy-first strategy can reframe the focus to quality rather than quantity.

Placing Privacy First

A privacy-first position places transparency and trust at the forefront of marketing practices in several ways, which include:

• Providing customers with control of their data, such as the ability to edit or manage preferences or request data deletion
• Offering visibility into what data an organization is collecting about its customers and how long the data is being stored
• Being open and transparent about how the organization is using customer data
• Disclosing security incidents and other instances when customer data may have been inappropriately accessed
  
  

These strategies place control firmly in the hands of the customer, and while it may seem counterintuitive at first glance, this can enhance the effectiveness of marketing efforts. When customers know they have control of their information, it fosters a sense of trust with a company and their brand. And because they are given options and choice, customers who allow companies to collect and process their information may do so with active rather than passive consent. In other words, they have chosen to engage with the business — helping marketing teams align campaigns more accurately with target audiences. The result is a win-win as the customer expects personalization in their experience and the company will realize greater conversion rates. 

Get Creative

In recent years, some companies have used privacy as a selling point and marketing tool for their products or services, especially in the technology industry. While not every company is in a position to use this particular strategy, privacy doesn’t have to be (and shouldn’t be) the boring legalese of the past. Businesses that think outside the box to make privacy content more engaging for their customers can encourage meaningful interaction and influence the probability of user consent. Some ways to go beyond traditional privacy strategies include:

1. Collaborate between privacy leaders, marketers, and user experience designers to organize content like privacy notices, preference centers, and cookie consent banners in ways that are interesting, manageable, and even funny.
2. Consider the language and tone of voice of notices and consent statements. Do they align with the company brand and speak to the target audience in a way that is consistent with the rest of the website? 
3. Use icons and graphics to make information more digestible and engaging, especially in places which are dense with content.
   
   

These are just a few strategies that can make privacy concepts more approachable and encourage greater engagement and interaction on websites and other marketing channels.

What the Future Holds

Privacy laws will continue to evolve globally, and emerging technologies like generative artificial intelligence are forcing regulators and businesses alike to consider what strong privacy standards will look like moving forward. As consumers, stakeholders, and regulatory agencies demand greater scrutiny on how companies handle data, organizations are going to be challenged in how they go about their marketing and other business innovation efforts.

With a privacy-first approach, that challenge can be an opportunity rather than an obstacle. And by placing customers’ best interests first, brands can nurture a feeling of trust and loyalty and forge stronger connections with their target buyers.

Learn how BDO can help you develop and implement a comprehensive privacy and data protection strategy.