Data Privacy
Today, we speak about the changing landscape of marketing and consumer privacy with Vivek Sharma, CEO, and co-founder of Movable Ink. Movable Ink uses the power of automation and AI to personalize every customer engagement.
Gary Drenik: How do you see data privacy laws evolving in the near future?
Vivek Sharma: 2023 marked a major shift in consumer privacy. Privacy laws like the General Data Protection Regulation (GDPR) in the EU are not new, but technological advancements like ChatGPT have opened consumers' eyes to the vast possibilities of having access to endless data and information. Consumers are taking control over their data, with 49.6% of Gen-Z and 42.9% of Millennials denying tracking permission for mobile apps and 33.7% and 32.2% respectively turning off mobile trackers entirely, according to a recent Prosper Insights & Analytics survey. Consumers are now backed by legislation in a handful of states, including Virginia, Utah, Colorado, and California, which have issued privacy laws that will become effective and enforceable throughout the year. Meanwhile, multiple other states have already introduced or tailored privacy bills within the first few months of 2023.
Prosper - Protecting Digital & Online Privacy
Historically, the U.S. has allowed businesses and institutions to collect personal information without express consent, but we’ve entered a new era with a heavy focus on protecting the privacy of consumers of all ages. Data and technology are evolving at lightspeed and there will be a greater push in the future to develop legislation that adheres to the ever evolving and changing data landscape and meets consumers' privacy expectations. As this progresses, brands will focus more on protecting consumer data and prioritizing immediate and long-term compliance obligations and avoiding legal scrutiny by leveraging alternative marketing tools and practices.
Drenik: What are the implications of these privacy laws on marketers and consumers? How can marketers get ahead of these updates?
Sharma: Recent privacy laws and the deprecation of third-party cookies may have felt like the end of the day to many marketers, but it has proven to be a good thing. These changes signify an evolution in the marketing industry and mark a positive turning point in the relationship between marketers and consumers. Consumers care about their data, and they have more of an affinity for brands that respect their data.
Marketers have already stopped using third-party data and cookies and leaned into zero- and first-party data and existing customer data to produce valuable, timely and relevant content. This will not change, and we are committed to this approach at Movable Ink. Privacy laws throughout the U.S. will be enforced in 2023 and marketers will still leverage zero- and first-party data to develop relevant marketing content, tying in an omnichannel marketing approach to meet consumers on their channel of choice. And consumers will continue to receive convenience, deals and relevant content in their inboxes without sharing personal data - essentially, they’ll have their cake and eat it, too.
Marketers are already prepared for federal and state privacy updates but additionally, marketers should invest in artificial intelligence (AI) to gain more leverage on their personalization challenges. This, combined with an omnichannel approach, reaching consumers where they are, can help marketers get ahead of these updates. It’s about doing more with less - focusing on the qualitative as opposed to the quantitative.
Drenik: How can marketers respect data privacy laws while delivering the personalized campaigns that consumers expect?
Sharma: By cautiously wielding the data the customer is voluntarily offering (whether that’s zero or first-party data), marketers can develop communications that anticipate their customers’ particular needs.
Zero-party data, information that is proactively shared with marketers through various tactics like polling, is based on trust and transparency. It’s a valuable asset for marketers, facilitating the creation of personalized content and building emotional connections. In a similar vein, first-party data from purchasing history and consumer behavior also plays a pivotal role in crafting tailored marketing content and furthering the connection between brands and their customers.
These tactics put the customer first and improve their overall experience. A critical and understood value exchange between consumers and marketers occurs customers willingly share information about their interests with their favorite brands, and marketers use that information to leverage it to build a seamless journey. The crux of the matter is that data is leveraged in service of customer experience, not in service of just revenue.
This approach is essential for marketers to deliver personalized campaigns while preserving customer loyalty and privacy.
Drenik: What is your advice for marketers addressing these challenges or hurdles?
Sharma: Naturally, the recent legislative and regulatory changes have made consumers analyze interactions with brands and marketers with more scrutiny. At a time like this, transparency could not be more important for consumers and marketers, alike. Your audience wants to know why you’re collecting data, how it will be used and where it will end up. To build trust and establish a mutually beneficial relationship with your consumers, make it explicitly clear where the data is coming from and where it’s going. Establish the value exchange so consumers can understand and opt-in to the added benefits their data lend to brand interactions.
In our recent Audience of One: Getting Personalization Right study, 68% of consumers said they are likely to be loyal customers if a brand is engaging and building personal relationships with them. There is a willingness from consumers to take part in this value exchange, with 44% of consumers saying they are comfortable giving their location to brands (for instance), in exchange for a more personalized experience.
Internally, marketers should focus on monitoring data privacy regulations - within the United States and globally. Staying up to date with industry trends and changes, like the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), only makes it easier to be adaptable once they’re enacted. By constantly monitoring and adapting to changing regulations, you demonstrate a commitment to protecting your audience and consumer data and mitigating legal risks.
Drenik: What is the must-have tool for marketers in order to drive growth?
Sharma: It’s nearly impossible to browse the internet or enter a discussion without hearing about AI. It hasn’t reached the point of managing business functions or running without human intervention, but it still provides invaluable assistance for marketers when addressing the intricate details of each individual customer.
AI has the potential to amplify marketers’ abilities a thousandfold and open new opportunity to create growth. It has the potential to boost our creativity, deepen our insights, and increase our productivity. Most importantly, it will enable us to discover profound, new ways to delight our customers with less of a dependency on capturing large volumes of data.
At Movable Ink, our marketing AI solution Da Vinci, is essentially the marketer’s guide to every customer. Using an AI-based model, Da Vinci is able to match the right content to the right customer, generating a fully personalized email for every subscriber, as it learns and adapts from every interaction. Instead of reinforcing what customers already like, Da Vinci encourages them to explore and discover new categories and products to help marketers grow their best customer channel. In short, it’s digital marketing that puts people first—and in a way that benefits the customer and the brand.
Drenik: What advice would you give marketers and brands on engaging with consumers in 2023?
Sharma: Invest in AI and embrace personalization, with a focus on improving the customer experience.
Zero- and first-party data have been, and always will be, fundamental components of creating personalized marketing campaigns regardless of data privacy laws. However, as consumer purchasing behavior becomes increasingly non-linear and customers demand more data privacy, brands now must incorporate advanced technology like AI and prioritize omnichannel strategies to level up the overall customer experience. Adhering to a customer-centric mindset to create scalable campaigns will foster brand loyalty, drive brand growth and revenue and build customer relationships.
Drenik: Thanks, Vivek, for taking the time to share your insights on the bright future of marketing as data privacy laws and consumer privacy preferences evolve.
