February 29 - March 5
- Friday Five
- Read in: 4 mins
- by: Karolina Bacewicz
This week we break down Data Personalization and Data Privacy through five commonly asked questions on how they are used in marketing.
1. What is Digital Personalization and Data Privacy?
Data personalization is specializing communication to a target audience based on learned information. Data privacy (or information privacy) is the relationship between the collection and distribution of people's data and how companies utilize that information.
2. What Are the Advantages?
For a company, the advantages are simple - they can more efficiently and effectively target their audience based off of consumer behavior. This helps companies improve their communication and messaging with their target audience and minimizes disruption. For a consumer, this means that non-personal, or behavior data, is examined by companies you already interact with, and make those interactions more worthwhile and relevant to you.
3. How Do Consumers React?
In 2020, 25% of consumers are using their phones to research product and service reviews, multiple times a week, and 18% of those people are also making mobile purchases throughout the week, according to a recent Episerver report. The report also mentions that although consumers enjoy the convenience of personalization and privacy, they remain weary.
4. How to Treat This Information?
How we treat data has changed over time. We’re starting our meals by posting a photo of it, signing documents online and clicking through updated terms and services every couple of months. Your behavior online reveals obvious patterns. Data personalization is focused on examining the patterns of what consumers post, share and reshare, and then using that information to cater authentic brand messaging to a target audience that all behave in a similar way. The goal isn’t to intrude on one's private information.
5. Why Has it Become Prevalent in Marketing?
Personalization is now considered a key element in sending a message. Tailoring marketing efforts to a company’s core audience is effective in increasing awareness, consumer base and revenue because the company is only interacting with the consumers that are interested in them and it minimizes clutter for the consumer.