RSS feed Get our RSS feed

News by Topic

BizReport : Law & Regulation : July 29, 2020

How to make privacy policies revenue makers

According to data out from the Direct Marketing Association after the initial losses many businesses faced from consumers opting out of marketing post-GDPR, the average ROI of outbound campaigns saw an increase of 15%. This is key, says one expert, to why brands must make privacy part of their revenue focus.

by Kristina Knight

Kristina: We are hearing a lot about brands' digital transformation. Why should brands' privacy policies be part of this transformation?

Jean-Michel Franco, Talend: Consumers value their digital privacy at a high rank. Think of COVID tracking applications for example. Everybody can understand the value of those apps: they can save lives and allow folks to regain some freedom by lessening the social distancing measures. However, even when they comply with high privacy standards such as GDPR and new potential regulations like CPRA, only a small minority of citizens are downloading them where they are available. More precisely, a mere half of the population says they intend to download and activate them, and in reality, only a fraction of them actually do it. Citizens have concerns of the potential surveillance, but also about the potential vulnerabilities related to data leaks. At the end of the day, those apps are not reaching the network effect that would make them efficient, and this limits the digital impact of COVID tracking.

Kristina: What are the biggest challenges facing brands who are still readying for CCPA and privacy regulations?

Jean-Michel: The digital era has opened new opportunities for customer relationships and experiences. At its best, it can deliver a fully personalized experience for consuming product and services in a new way. The impact has been phenomenal in some industries, such as for taxis with mobile apps that offer frictionless experiences - from finding your taxi to predictable pricing and payment - has totally reshaped the market.
But, there is a dark side which is currently severely eroding trust in digital technologies.  Not only are consumers showing a desire for more regulations when it comes to a fair and secure usage of their privacy data,  but they are expecting their supplier to take the lead on the change rather than waiting for governments (which they actually trust even less than their suppliers) to define policies and deliver penalties for those that don't comply. We're headed to a point where regulation compliance, isn't good enough. 

Kristina: How can a brands' privacy policy turn into a revenue driver?

Jean-Michel: It has been estimated the average marketer lost 23% of their contact database [due to GDPR]. [The] good news is that the same survey shows that this loss didn't happen with best performers as they already had some programs in place to get customer consent and engage their customers through precision targeting and personalization. This ultimately led them into building a customer relationship that benefits both parties. 

In addition, most of the other companies, initially faced with the erosion of their database, took measures to engage/re-engage their leads with the new rules. By doing that they could establish customer friendly engagement principles. These principles allowed them to engage their audience with mutually beneficial and transparent approaches. The bottom line? The Direct Marketing Association estimates through surveys that the average ROI of outbound campaigns has increased by 15% after GDPR was enacted. Other surveys estimate that GDPR helped to establish targeting and contact management best practices that ultimately translate into higher average open rate and click through rates in Europe than in America or Asia/Pacific.

Tags: advertising, CCPA, consumer data tips, data regulations, GDPR, privacy regulations, revenue strategy, Talend

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.