Advertising TechnologyCRM and Data Platforms

Gain Customer Trust With These Three Privacy-Centric Advertising Practices

A one-size-fits-all advertising approach no longer cuts it. Customers expect personalized advertising experiences that cater to them. And they also want to have a say in how they see and receive ads. 

But there’s a catch. Much of today’s advertising comes from third-party (3P) data. With the deprecation of third-party cookies and data privacy laws—not to mention consumers themselves are concerned about their data’s security—using these outdated methods to target customers is no longer an option. 

Marketers need to turn to the source: their customers. First-party (1P) data—customer purchases, surveys, feedback—not only complies with evolving privacy regulations but is also highly valuable because it’s the most accurate view that allows you to send your customers the most relevant, customized ads. That is to say; this strategy stems from building a direct relationship with customers.

So, the question is, How do you gain customers’ trust? Here are three privacy-centric practices you can use to win your customers’ loyalty.

Emphasize Transparency and Choice

Adopting first-party data strategies offers a unique advantage for businesses to focus on transparency and customer choice.

One tool that allows customers to manage their data is a preference management system. These systems put customers in the driver’s seat by allowing them to opt into or out of data collection and sharing and to define their communication preferences.

This approach respects their autonomy while giving marketers precise and updated customer data. With this data at their fingertips, marketers can create and execute campaigns that authentically connect with their customers, boosting engagement and customer satisfaction. 

One way to gather this data is by asking users to opt into data collection, often through accepting cookies on the website. Businesses need to clearly communicate what data they’re collecting, why they’re collecting it, and how it’ll be used. 

For instance, you can tell customers you’re collecting data to improve their experience with site personalization. Businesses can curate content based on user preferences and behavior rather than providing a generic website experience to all visitors. This can include written content, images, banners, and recommendations that resonate with individual users. 

These approaches not only lead to more effective advertising, but they can also build stronger, trust-based relationships with their customers.

Offer Value For Customer Data

Customers often want to receive something in return for sharing personal data. Value can come in personalized experiences, exclusive offers, and relevant content. 

But not all customers are the same. A Forrester report revealed five privacy personas with very different expectations toward companies’ collection and use of their data. Three groups, in particular, were more likely to exchange their data for value:

  • Reckless Rebels trust companies will use their data for better, more relevant ad experiences. In fact, over half say it’s OK to sell their information and online activities for better personalization.
  • Conditional Consumerists will share their information but at a price. They want perks like loyalty programs—the report revealed that 93% of this group already enrolled in a program. 
  • Data-Savvy Digitals only share personal information if they want a product or service. They also don’t buy into the extras like other groups. For example, only 25% will share more personal information for loyalty program points versus 46% of Conditional Consumerists.

The final two groups, Skeptical Protectionists and Nervous Unawares, are less likely to willingly share their data, making it a challenge to incentivize them. Instead of trying to persuade these privacy-conscious customers, focus on developing a robust first-party data profile to better understand and address their needs and preferences. 

Have Tools In Place For Better Data Management

Building trust with customers begins with marketers effectively managing their data. Only complete or organized first-party data can help marketing efforts. That’s why you need the right tools.

Customer data platforms (CDPs) can help create a unified view of the customer. These platforms consolidate customer data from various sources, such as online e-commerce, loyalty programs, and in-store point-of-sale (POS) systems, into a centralized location. This enables companies to manage personal information across all touchpoints.

CDPs also make it easier for marketers to remove personal information upon customer request. This ensures compliance with privacy laws and enhances your customer experiences with your brand—building trust and loyalty. 

Data clean rooms (DCRs) are another emerging tool that protects customer privacy while enabling effective advertising. A DCR is a secure environment where companies can share their first-party customer data without disclosing personally identifiable information (PII). This exchange of data, known as second-party (2P) data, helps create a comprehensive view of customers across multiple companies. By sharing data in a privacy-compliant manner, companies can better understand their customer profiles and deliver targeted advertising, all while safeguarding customer privacy.

By using these three strategies, marketers can prioritize customer privacy and win their trust. By doing so, they can create more meaningful customer relationships, enhance brand loyalty, and drive success in an increasingly competitive digital world.

Caleb Benningfield

Caleb Benningfield is the Principal Solution Architect at Amperity. With over seven years of experience at Amperity, the leading customer data platform (CDP), Caleb has held various roles, including Principal Solution Architect and Forward Deployed Engineer. As one of the first employees, he was pivotal in establishing the Customer Success team and was involved in the company’s first major successful customer project with Alaska Airlines. Caleb has the unique ability to bridge the gap between technical aspects and market perspectives. Prior to Amperity, Caleb served as a Lead Software Engineer at IMS Health, where he worked on scaling an enterprise CRM and marketing automation platform. He began his career as a Software Developer at Appature before its acquisition by IMS Health.

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