How to reconcile personalization of the customer experience and protection of personal data

If you were offered a free pizza or discount on your daily coffee in exchange for your email address, would you give it? Are you one of those who systematically check the box “I agree to accept the general conditions of use of the service” without even having a look at the privacy policy of an application?

While Millenials are more suspicious of their brands’ use of their data, they are nevertheless more willing to share their information in order to gain practicality and benefit from personalized service. This is the “paradox of confidentiality”, which refers to the obvious discrepancy between clients’ concerns about their privacy and their actual online behavior.

Many companies still see personalization and data protection as two irreconcilable goals, rather than an opportunity for symbiosis. The paradox of confidentiality can create disagreements between data managers and their analysts, their colleagues watching over the quality of the customer experience, the marketing managers, the security and risk managers, and the other managers in charge of the data. commercial or computer issues. It restricts initiatives to improve the customer experience, frustrates consumers and limits the creation of value for the company.

Fear of the risks of breach of confidentiality tends to curb business. They do not allow themselves to exploit the full potential of the data and thus miss out on customer experiences that may make them stand out. The key is to add value to the customer and stick to contextual use of the data. 

Image result for personal data

Personalization is the key

By personalization, companies seek to enrich the service offered to their customers, but few of them really succeed. Indeed, only 12% of consumers say they benefit from tailor-made assistance from the brands they serve.

The “four Ps” (product, price, advertising, and placement) that used to be the pillars of marketing have become less important because of the increased visibility and availability of products that came with the advent of the web. This benefits the customer experience that has become the number one differentiator for companies.

Data compliance concerns typically lead businesses to exploit only those that are impersonal, such as anonymized information or aggregates of behavioral data. These can be useful to them, but they do not always offer customers an attractive experience.

Customers now expect brands to recognize them and provide them with personalized treatment. If they do not get satisfaction, they may go elsewhere. In other words, companies that successfully match credentials with behavioral information are bound to outpace their competitors.

Overcoming difficulties arising from the paradox of confidentiality

Here are eight rules to follow to mitigate risk while increasing revenue:

1. Read publications from law firms, consulting firms, and other relevant authorities to clearly understand data compliance principles and obligations such as the EU’s General Data Protection Regulation (GDPR), as well as the use of personal data for personalization purposes. Reframe the debate and the acts so that your customers do not get angry about personalization and data protection, but understand that it is in their interest.

2. Rethink the relationship between personalization and data protection so that these two goals work in symbiosis. This involves defining the criteria for access and use of personal data. The idea is to achieve optimal customer experience, that is to say, more refined, trustworthy and contextualized.

3. Place customers at the center of your strategy. Use their data to enrich the experience your brand offers and provide them with a more efficient service, while at the same time making you consider the context.

4. Use a legal representative and compliance and PR advisor: Ensure that they incorporate the role of balancing confidentiality, business processes and innovation in their marketing analysis. customer experience, development of new data products, security protocols, and risk management issues.

5. Explain to the relevant employees how observing personal data protection rules often goes hand in hand with creating an optimal customer experience. You can support the practical case demonstration of how privacy and personalization can help build a relationship of trust with the customer while adding value to the business.

6. Play the precursors by enriching the personal strategies of personalization with personal data. You can use this information to create new products and sources of revenue by offering your customers attractive experiences.

7. Collaborate with customer experience managers and sales managers to expand the scope for collecting, operating, and sharing data. You need to build a relationship of trust with the customer by defining practices to observe in terms of transparency. On the other hand, it is desirable to incorporate the issues of privacy and employee training into ethical data use.

8. Prevent tensions between the various departments of the company by ensuring that strategic customer data analysis projects only concern personal data. Without them, it would be impossible to harmonize the customer experience, preferences, requirements, and interests.