In Canada, PIPEDA (Personal Information Protection and Electronic Documents Act in French) regulates the collection, use and disclosure of personal information for all Canadian private companies. Originally enacted in 2000, it was later updated in response to the GDPR.
The General Data Protection Regulation ( GDPR ) was introduced in 2018 by the European Union. Being stricter and affecting any company that processes data of European citizens, it has had significant global repercussions and is a guideline for many companies, even outside the European Union.
GDPR comes as a response to internet users who cite privacy list of austria whatsapp phone numbers and cybersecurity as their main concern and who do not trust brands to manipulate their data.
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Summary
Impact and consequences of the GDPR on customer data management
Primary, secondary and third-party data: how to find your way around?
Concretely using primary data in a marketing strategy
Impact and consequences of the GDPR on customer data management
What are the consequences for brands?
It is no longer possible to communicate with consumers who have not given their authorization;
Explicit consent is required, valid at all stages of the customer journey;
The user must understand what data is processed, how and why. In addition, it must only be collected for clear, precise and legitimate purposes.
Internet users are also wary of tracking strategies implemented by brands to monitor their online actions:
72% of them think that all their online actions are tracked by advertisers;
81% of them believe that the risks associated with data collection outweigh their benefits.
Source: Pew Research Center, “ Americans and Privacy: Concerned, Confused and Feeling Lack of Control Over Their Personal Information ”
Following this lack of trust and the gradual change in Internet users' behavior, the major players in the sector have also had to react, especially after scandals such as that of Facebook and Cambridge Analytica:
Google announced the end of third-party cookies for 2022 (postponed to 2023);
Apple has tightened its privacy policies for advertising with the iOS 14.5 update;
Technologies such as Microsoft PARAKEET (Private and Anonymized Requests for Ads that Keep Efficacy and Enhance Transparency) or Google FLoC (Federated Learning of Cohorts) are starting to emerge.
What impacts?
For consumers: more control over the data they share with advertisers;
For advertisers: greater limits on the scope of targeting tactics;
For the media: the need to develop new strategies to monetize their audiences.
Source: Actito and Qualifio , Webinar “ Are you ready for the cookieless world? How to collect first- and zero-party data ?”
The challenge for brands is therefore to adapt to move towards more privacy-friendly models, while guaranteeing the performance of their campaigns. We are therefore seeing the emergence of primary data collection strategies today to enable brands to move away from dependence on third-party cookies and create new forms of segmentation. This also offers companies a strong potential for personalization in communications and offers, the opportunity to create a more impactful brand experience and strengthen their relationship with their customers.
Primary, secondary and third-party data: how to find your way around?
Third party data
Third-party data is data that a business may purchase from other external organizations. These third-party organizations, commonly known as aggregators, do not engage directly with consumers and are not the original collectors of the data they resell.
In fact, aggregators act as intermediaries by purchasing behavioral or declarative data that is associated with users using cookies and subsequently reselling it to companies that wish to conduct marketing campaigns.
While this data allows advertisers to target specific consumer segments, it is important to understand that it is not exclusive. In other words, third-party data purchased from aggregators can be consulted by several companies that will deploy their marketing efforts towards the same consumer segments. Uniqueness is therefore not the strength of third-party data!
Furthermore, laws and regulations in different countries are increasingly regulating the collection and use of third-party data, forcing businesses and advertisers to shift more towards primary and secondary data collection.
Secondary data
Secondary data is all primary data purchased from an organization that owns it. In this way, secondary data is very similar to primary data, but it comes from sources external to the company that acquires it. In other words, a company can buy primary data from another organization in order to feed its own behavioral analysis of its prospects.
For example, advertisers can purchase primary data from publishers. When the transaction is completed, the advertiser gains secondary data that can be used to expand its consumer target or create even more niche segments. Indeed, when combined with primary data, secondary data can refine the consumer segments that a company seeks to reach through its marketing tactics.
Primary data
Primary data encompasses all the information that a company collects directly from its customers, both online and offline. This data is therefore considered an important asset for a company. Indeed, the company becomes the sole owner of the primary data that it collects through its owned media, CRM, website, email sending platform, point of sale system, mobile application, loyalty program, etc. In addition, primary data is without a doubt the most reliable data that a company can have.
Also, unlike secondary and third-party data that aims to reach prospects, primary data is used on the already acquired clientele of the company that collects it. Firstly, this allows to paint a comprehensive picture of the different behaviors of customers. Secondly, the collection of primary data allows to better target prospects who should, in reality, resemble the already active customers of the brand.
Recent legislative changes aimed at further regulating the use of third-party data, including by reducing the use of third-party cookies, are forcing companies to reconsider their targeting and data collection practices. In particular, spending on third-party data acquisition is increasingly being redirected towards the collection of secondary or primary data, in order to reduce companies' dependence on third-party data aggregators and to dissociate themselves from data collection without prior consent.
As a result, privacy concerns related to primary data collection are more limited, as the nature of the data and consent to its use are transparently obtained directly from the brand's customers.
How to collect your own data?
People’s attitudes toward online privacy change based on the perceived value of an ad. The most valuable ads are tailored to their interests, save them time or money, and are presented to them at the right time. When brands understand their customers, they can engage them with a marketing strategy that delivers value and drives performance. The use of primary data is key. This is information specific to a business that customers provide voluntarily. When used correctly, it allows marketers to understand and predict the individual needs of their customers, reaching them with relevant and meaningful messages.
In terms of security, primary data is more reassuring for the Internet user since there is no intermediary between them and the company using their data. More and more companies are also focusing on hosting data in their country of activity.
How can we encourage customers to share this data?
Internet users surveyed by Ipsos who feel close to a brand are more likely to give the latter permission to present them with offers based on more detailed data.
Respondents are three times more likely to respond positively to an ad when they feel they have more control over how their data is used.
Source: Google and Ipsos , “ Privacy by design: exceeding customer expectations ”, 2021
Primary data collection is a hot topic, at the heart of discussions in terms of information security.
Some recommendations for marketing teams:
Building trust with consumers to get them to share data
Use a preference center
Respect users' choices regarding the protection of their data
Concretely using primary data in a marketing strategy
Loyalty strategy
One thing is certain, the imminent end of third-party cookies calls into question customer information acquisition strategies. While the basis of the customer acquisition strategy is based on third-party data, companies see the urgency to adapt their growth strategy. Indeed, they are increasingly turning to customer retention which requires the collection of primary data.
To do this, companies can rely on relationship marketing and loyalty strategies. Now more than ever, loyalty programs are very effective vectors for collecting primary data. They allow, among other things, to collect nominative, transactional and behavioral data on each of the company's most loyal and engaged customers, and this, in a completely transparent way. Furthermore, companies are not the only ones to benefit from the advantages offered by loyalty programs. Indeed, members also derive benefits from them, in particular by being offered exclusive rewards, points and a personalized consumer experience.
That being said, collecting primary data remains a growing challenge for businesses today.
The results of the Global Customer Loyalty Report 2022 reveal that data collection is the third most significant challenge identified by respondents.
Source: Antavo , “ Global Customer Loyalty Report 2022 ”, 2022
In other words, managers of companies that offer a loyalty program indicate that being able to collect and then use data to fuel segmentation and personalization is a significant organizational challenge. This challenge will continue to influence the future of marketing and customer loyalty in light of recent changes in legislation.
To collect, store and use primary data wisely, companies must invest in technology, particularly in a CRM (Customer Relationship Management) platform. CRM software retrieves all customer information, saves it in a database and manages it in a way that optimizes the company's objectives. Purchase history, customer interactions, points accumulation, rewards use, contact information, customer profile, it's all there! [JW1]
In short, loyalty programs allow companies to collect primary data through an agreement whose terms and conditions strengthen the bond of trust with consumers. In addition to offering consumers relevant rewards, companies that manage a loyalty program can more easily
