Last Christmas, I bought a friend of mine a subscription to a science and cultural magazine. She had discovered the magazine during working hours, so she was thrilled when they started to show up at her door.
The gift was a success, despite the fact that I had misspelled his name. But then, other magazine offers began to arrive by mail. Next come applications for donations from charitable groups. Then, the announcements of the travel agencies. And then came the political shippers.
Once she activated her digital subscription, the situation got worse. Although Google's algorithm prevents spam from entering its inbox, the same companies that clutter its mailbox have been found there. Finally, she dropped that email address for an unknown address from the magazine.
The Customer Experience Matters More
By selling my friend's data, the magazine lost its business. So what did he win in return? Probably around $ 0.20. Although the value of a customer's data varies according to their situation, it rarely sells for more than one dollar.
Overall, sales of user data add up. But no amount of advertising money can erase the stain left by the sale on the customer experience . According to a study published last May, Insights Network's Data Exchange pointed out that 90% of consumers find it unethical for businesses to share personal data without the consent of the user. Although some customers believe that sharing data is not ethical, they will not be, like my friend.
That my friend is the exception or that the standard is not important. According to a PwC report released earlier this year, the important thing is that nearly three-quarters of consumers view customer experience as an important factor in their purchasing decisions. And nothing jeopardizes the customer experience as well as an unethical use of personal data.
Treat customer data like yours
Of course, customers have different expectations when it comes to managing their data. So, how can you refine your data policies to deliver the best experience to the greatest number of customers? Follow the golden rule: treat the user data as you wish. In other words:
1. Do not buy data; just ask me.
In the United States alone, businesses spend more than $ 10 billion a year on third-party audience data. The problem is that 65% of consumers are not comfortable with sharing their personal data with for-profit businesses, according to the Insights Network report.
But where, if not data providers, can you get information about customers? What about the customers themselves? Snapchat and other customer-centric companies partner with companies such as Jebbit to collect the reported data . Declared data is confidential information that consumers voluntarily provide about their motives, intentions, interests and preferences.
Even though it may seem impossible to collect enough data reported for Big Data initiatives, Jebbit points out that online experiences and conversations can make collection scalable. Moreover, thanks to the willingness of its customers, reported data tends to be much more accurate than third-party data, which two-thirds of the consumers surveyed reported to Deloitte as mostly inaccurate.
2. Give something back to the customer.
The question is whether consumers are really willing to share their data. Most are, provided you get something in return. According to a survey conducted by Acxiom and the Data & Marketing Association industry group, 58% of consumers make decisions on a case-by-case basis to determine whether a service improvement is worth sharing their data.
What exactly do customers want in return? In a world, personalization. Epsilon's research shows that 80% of consumers are more likely to buy from brands offering personalized experiences. Most consumers realize that products and services can only be adapted if they share certain personal data.
If you need inspiration, check out Spotify. The music service not only leverages user data to create custom Discover Weekly playlists, but it also creates bottomless daily mixes in the user's favorite genres. Finally, its broadcast radar helps users find new releases of their favorite artists.
3. Get consent before you share or sell user data – or better yet, do not sell them at all.
While the United States does not have a comprehensive law such as the EU General Regulations on Data Protection which requires companies to obtain the consent of the United States. customer before sharing or selling their data, new legislation such as the California Consumer Privacy Act indicates a change in this direction. The simple fact that the practice is currently legal in the United States does not mean that it is a smart business.
At a time when customer experience is paramount, the clandestine sale of user data is simply not a wise choice. The science magazine may have made a quarter by doing this, but it has also turned a paying client into a quitter.
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