Businesses that sell to consumers (B2C) require data to fuel their marketing efforts and drive growth. This begins with understanding their customers, which necessitates the use of data. The data landscape, on the other hand, is changing. Everything is becoming more digitized. As a result, consumer needs and priorities are shifting.
Marketers must be aware of the trends affecting the data landscape in order to develop new strategies. We identified four emerging trends that will shape consumer data in the future.
Data-Driven Personalization
Personalization is the driving force behind marketing efficiency, and data is the underlying asset that powers it. Customers want and expect businesses to understand their wants and needs. Today, data-driven personalization is synonymous with good customer experience, necessitating marketers' intimate knowledge of their customers.
Here are some compelling statistics demonstrating the benefits of data-driven personalization:
90% of customers find personalized advertising appealing.
80% of customers are more likely to purchase when offered personalized services.
25% of business revenues are driven by personalization.
Nowadays, data-driven personalization is standard for an organization's marketing efforts. Despite this, customers want more, preferring individually tailored experiences. In response, marketers need to pivot their focus to hyper-personalized offers. This can be achieved by leveraging real-time data and predictive analytics like propensity modelling.
Real-time data is readily available as soon as it’s generated. Using real-time data is cost-effective and allows organizations to understand what customers are looking for. Cyder provides businesses with real-time, actionable data that allows organizations to improve the customer experience, increase the customer's likelihood to purchase new products and reduce churn throughout the customer journey.
Propensity modelling, also known as next-best-action modelling, is a technique that employs machine learning to accurately predict a customer's actions based on their past behaviour. It is intended to determine the best course of action for a company to take toward a customer. Propensity modelling, for example, can predict which customers are more likely to make a repeat purchase, allowing marketers to send out offers and promotions at the appropriate time. Marketers can track how customers react to their messaging using propensity modelling, allowing them to deliver the right content at the right time.
Consumers Demand Privacy
Consumers are more privacy-conscious than ever. The infamous Cambridge Analytica scandal brought data privacy to the forefront of public interest, and many saw how powerful (and sometimes dangerous) data can be. Even today, corporations clash with regulators and experience breaches that serve as a grim reminder to consumers that their information is being collected. In the first half of this year alone, the GDPR hit a record number of data privacy fines, totalling 1.7 Billion USD.
Privacy is no longer an afterthought to consumers, its become a demand. KPMG released a report that surveyed how consumers feel about current data practices
86% of the respondents said they feel a growing concern about data privacy
78% expressed fears about the amount of data being collected.
40% of the consumers surveyed don’t trust companies to use their data ethically.
With greater awareness and concern comes action. Consumers are taking matters into their own hands. With privacy-protecting tools being just a download away. Tools like VPNs, adblockers, and privacy browsers are rising in popularity:
31% of internet users are using VPNs.
42% of internet users use an Adblocker at least once a month.
Users are migrating to privacy browsers like Brave (50M Users) for a more secure experience.
One thing is clear. If consumers don’t get privacy, they’ll find a way to get it. Marketers and business decision-makers need to be aware that their customers want privacy, and find ways to balance privacy with their data needs. Some ways include educating customers, only collecting relevant data, providing value, and giving customers control over their data. Read our previous blog post that discusses balancing consumer privacy with corporate data needs to learn more.
Policy is Changing Business
Privacy concerns are increasing, and governments are introducing regulations in response. These laws give consumers greater control over who can access their information. As a result, organizations need to frequently evaluate their data collection practices to ensure they are privacy-compliant.
One of the most well-known privacy regulations to date is the GDPR. Introduced in 2018, the GDPR provides EU citizens with a set of fundemental privacy rights and ensures organizations operating in the EU comply. The GDPR set a global standard for privacy legislation, and many countries have followed in the EU’s direction.
In Canada, Bill C-27 was recently implemented. Bill C-27 is an update to Canada’s existing privacy legislation, strengthening the current privacy laws and establishing new rules for the responsible development of artificial intelligence (AI). Moreover, in the US, new privacy laws are being passed across states that give consumers greater protection and control over their information.
Organizations are looking for alternative solutions to ensure their data practices meet present and future regulatory standards. Examples include Google, which is phasing out third-party cookies in favour of more privacy-compliant collection methods. On the other hand, Apple introduced a “Do Not Track” feature in their iOS 2021 update, giving their users the power to opt out of data collection.
Marketers and business decision-makers must keep an eye on these changes. They need to evaluate how it affects their internal operations, especially if the devices and browsers their customers use are shifting in response to legislation.
Technology Is Moving Fast
Customer Data Platforms (CDPs):: Customer data platforms (CDPs) enable real-time marketing by providing a centralized view of the customer. They consolidate all data in one location, allowing marketers to personalize their messaging in real-time. CDPs are useful in anticipating what customers want next and providing a consistent experience across channels.
Artificial Intelligence & Machine Learning Models: AI and machine learning are effective tools for increasing campaign effectiveness and predicting customer behaviour. AI models can analyze historical and real-time data to determine how customers react to marketing efforts. This enables marketers to take the next best action and develop effective messaging.
Data Sourcing & Privacy Technologies: Current data trends have lead to privacy-oriented solutions for targeting customers and sourcing data. The Trade Desk launched UID2, aligning with Google’s cookieless browsing future by implementing privacy-focused targeting measures. Our platform, Cyder, offers real-time data and intent signals to businesses by functioning as a loyalty program and privacy browser extension for users.
Adapting to Change
To navigate the changing data ecosystem, staying ahead requires innovation. At Cyder, we understand the challenges businesses face in meeting consumer demands, privacy concerns, and evolving regulations.
Our platform is designed to keep business on top of the trends. Our platform is designed to keep businesses on top of the trends, offering privacy-compliant, real-time customer intent triggers that improve customer experience, automate marketing, and boost growth – all while empowering consumers with privacy. It’s a win-win solution.
For a closer look at how Cyder can transform your data strategy, book a demo with one of our privacy experts today.