The personalisation and privacy paradox - a $180bn problem
Accenture’s The Bottom Line on Trust 2018 found that 54% of the companies who experienced a material drop in trust are estimated to have lost $180bn in revenue. Consumers demand trust sit at the heart of their experiences with brands. What is marketing’s role in the new meaning of trust and what does this mean for customer experience?
- A ‘Personalisation Paradox’ is emerging, with a trusted relationship key to delivering the experiences customers demand
- There is a new definition of trust for the consumer, focused on respect for data and the proper use of it
- Customers demand better personalisation and brands to truly know who they are in every interaction
- Delivering brand new, trusted customer experiences will differentiate marketers and their brand
There’s a growing gap between how brands use data to fuel their customer experiences and what consumers expect. Consumers demand that brands both protect and respect their data and use it to deliver experiences which make them feel known, valued and understood. This is challenging the role of marketers and the way they deliver brand value to consumers.
Marketers need to be more intentional and focused on how they approach data, privacy and their role because marketing has changed. Old school marketing where brands broadcast a message to a wide audience and picked off those who were receptive is over. Marketers used to take pride in the size and scale of their campaigns, but times have changed. Today, we define and measure the success of marketing on generating one to one relationships, proving to customers that we know them and delivering clear ROI to the business. The era of a personalised approach has moved from an aspiration, to a necessity.
This is hugely challenging for brands and has resulted in a personalisation paradox. Our State of the Connected Customer report found 84% of customers expect personalised experiences yet 57% of consumers are uncomfortable with how companies use their data. Consumers are willing to provide their data for experiences which add value to their lives, but they don’t trust the brands intentions and activities with their data.
The challenge of providing brand new, trusted, personalised experiences means it’s never been more exciting to be a marketer. Savvy brands are turning to marketers to help guide the way to differentiation and growth in the new consumer landscape. They’re not wrong to take that approach - the Connected Customer Report found 80% of customers say the experience that a company provides is just as important as its products and services.
To succeed, marketers need to champion the right values, processes and technology to build a trusted, personalised customer experience. This means:
- Every time data is used, it delivers value to the customer, with experiences showing how well the brand knows and appreciates them
- Transparency with the customer on how their data is used and why
Striking the right balance will have real business outcomes. Harvard Business Review found personalisation can reduce acquisition costs by as much as 50%, lift revenues by 5-15%, and increase the efficiency of marketing spend by 10-30%. Solving the ‘Personalisation Paradox’ will not only restore trust in the brand, build customer success and help it grow; it will help marketers deliver value and ROI to their business.