How proactive marketers protect data and win customers at the same time

News of the massive $888 million fine levied against Amazon by the Luxembourg data protection authority CNPD for processing personal data in violation of the European Union’s General Data Protection Regulation (GDPR) was easily the most high-profile data privacy story in a year full of increasing data breaches and new data privacy regulations. The message was clear: It is time for companies to get serious about data protection strategy.

Around the world, data protection regulations have taken center stage. China’s long-awaited Personal Information Protection Law, which builds around “continuous consent,” was passed in August and takes effect on Nov. 1 as its own tougher version of GDPR. Some states in the US have also passed their own comprehensive data privacy laws this year, joining California. The states share some provisions, but Virginia borrows key concepts from the GDPR.

All of this may make the environment seem too fractured at the moment for enterprise marketers to get a real sense of how to move forward with their own data initiatives. Yet, for brands, waiting for definitive policies isn’t an option. The pandemic accelerated the pace of digital transformation across the entire business environment, advancing the pace of online spending by about two years. Now, companies are sitting on a larger mountain of e-commerce data than ever. 

Forward-thinking marketers are proactively addressing their own companies’ data privacy and protection policies while advancing new tools to win customers and market share. They’re making moves to better understand and protect their data in ways that will strengthen trust with customers. Technology that can leverage data such as artificial intelligence (AI) and machine learning (ML) will accelerate the ability to find and market with surgical precision. But those same technologies could entice marketers to cross a line from strategic marketing to customer creep. 

Data privacy and protection should play a leading role in marketing strategy because consumers demand it. But that strategy must be informed by the urgency of stricter regulations and heavier consequences. Fail and you stand to lose customers, revenue, and market share.

In an era where customers demand a compelling, personalized experience, the pressure is squarely on marketers’ shoulders to gain an edge. No matter what laws may come, marketers have access to terabytes of data — in the cloud, on-prem, and/or hosted by third parties — and the technology exists to bring it all together in the name of strategic marketing. We have AI and automation to parse the data and create new customer experiences. 

But this opportunity is only as big as marketers’ ability to maintain customer trust. SAS recently found that nearly three-fourths of consumers are concerned about data privacy, and the increasingly high-profile nature of data breaches continues to erode trust. 

Reputation is still everything when it comes to consumer confidence. Marketers should start by understanding how common data rights apply to their products, services, and customers.