Data Privacy & Legislation

5 Takeaways: Personalization vs. Privacy Paradox Report

What do 94% of marketers love, but 92% of consumers fear? The answer is personalization. Check out 5 key takeaways from our latest report, Overcoming the Personalization vs. Privacy Paradox.

What do 94% of marketers love, but 92% of consumers fear?

The answer is personalization.

Now at this point, it’s pretty much a given that good marketing requires personalization. Demand for personalized experiences has reached an all time high, with 67% of consumers expecting it at every touchpoint.

Not to mention, brands who deliver are seeing great results. McKinsey research has revealed that personalization can deliver five to eight times the ROI on marketing spend and lift sales by 10% or more.

However, after Cambridge Analytica, data breaches, and creepy advertising practices, consumers have become increasingly concerned about their personal data privacy.

In our new report, Overcoming the Personalization vs. Privacy Paradox, we explored how and why consumer trust has eroded, the new consumer expectations, and what smart marketers can do to get ahead in this changing landscape.

Don’t have time to read the entire report? We’ve got the top 5 takeaways right here:

1) The marketing landscape has changed

Post-GDPR and Cambridge Analytica, consumers are more aware of how their data is used and collected. In fact, 92% of consumers are now worried about data privacy. While consumers still want personalized experiences, marketers are going to have to account and adjust to the growing concerns.


2) Bad data powers bad personalization

Poor quality data costs business over $3 trillion each year. The worst offender? Third-party data. While the buying and selling of third-party data has become a $20 billion industry, our own research found that the data being bought and sold is only 34% accurate. No wonder 58% of consumers have broken ties with brands over poor personalization.


3) Consumers have new expectations

After enduring years of “creepy” and inaccurate personalization, consumers’ expectations have changed. Although consumers still want personalized experiences, data privacy concerns have reshaped what consumers are willing to accept.


4) The way forward hinges on building trust

Moving forward, consumers expect relationships with brands to be similar to their real-life counterparts. When one party goes outside of the relationship for information, trust is broken.

To get and stay ahead of changing consumer expectations, marketers MUST re-examine their data strategies and work to build trusting relationships with consumers. To do so requires three steps:


5) Declared data drives trust and great personalization

Taking first-party data a step further, declared data can help alleviate data privacy concerns by bringing data capture and activation out into the open. When personalization is done correctly with good data and consumer buy-in, the results are dramatic.


Get the Report

Although the highlights are nice, we all know the Cliffnotes are never as good as the book. Download the report today to learn how to truly overcome the personalization vs. privacy paradox.

Published June 14, 2018

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See the power of declared data for yourself.