data privacy drive growth

Data Privacy Continues to Drive Growth


The Essentials in Brief

Ben McDermott stresses that it is wrong to view data privacy simply as a cost centre; it can also help drive revenue...

Yet new challenges appear on the horizon, warns annual study.

The changing landscape of digital marketing has found its North Star.

Less than a decade ago, the seismic changes of incoming data privacy regulations were being viewed by many as ruinous. Apocalyptic visions of an advertising industry in flames were being espoused from certain corners. Thankfully, based on the ingenuity and adaptability of the digital marketing ecosystem, that climate has changed. GDPR and its worldwide clones have become firmly embedded, not only in the industry’s psyche, but in the understanding of the consumer. They now know that they and their data are being protected, and as such, proffer their trust to those who are interested in protecting them ahead of those who continue to seek purely for their own gain.

Who amongst us has not viewed a 50+ list of adtech vendor optouts without a “Select All” option and simply closed the webpage? Customers who are willing to give away their data to access a service without bothering to check the terms are fewer every day. High-profile data breaches have made people wary, and supportive of a tougher stance against abuses and lack of care. In turn, new rights have heightened expectations of transparency and control. When these are lacking, consumers disengage. Privacy is now an issue squarely in the turf of marketers, which means that that it can be turned in a competitive advantage. If privacy compliance once required a change of procedure; privacy-led growth is the new change of mind. And as always, it helps to stay ahead of the pack…

According to Gartner’s predictions, 65% of the world’s population will have their personal data covered under a data privacy regulation by the end of 2023.

This prediction could yet be surpassed as the much-awaited Digital Personal Data Protection bill (DPDP) was passed by the Indian Parliament on August 10, 2023 to offer the right to privacy as a fundamental right just “a procedural step away from becoming the law” in the most populated country on the planet (17.76% of global population). Even in 2023, privacy law is still developing and is of continued importance to businesses.

Marketers have been appraising the nuances of the marketing relationship before setting the tone on how to use customers’ data for services and products. Even prior to sweeping regulatory changes, when travel website Orbitz used data to steer Mac users to pricier hotels, commentators found it “creepy”. Yet Amazon does not meet the same vitriol when it customises purchase recommendation for its users on similar criteria. Companies that engage users to share more data must also establish a clear framework of expectations for data use, particularly its benefits to the consumer.

Data privacy has been a driver of this communication for over 5 years now. Far from being an unwelcome cost, Cisco’s 2023 Data Privacy Benchmark Study surpassed the suggestion of data privacy ROI in a 2019 Forrester report for the fourth year straight to offer an astonishing metric: For every dollar spent on privacy, the report found that the average business sees a $1.26 return in benefits (down from $2.25 in the 2021 report as the leaders are caught up). There is a sound theoretical basis for these continued returns. Consumer trust is a long term asset for any company when it is seen as a marketing goal, not a risk-avoidance strategy. Indeed, the report showed that most privacy professionals believed that investments had benefits in multiple areas:

A survey by Morning Consult in March 2021 found that “respects and protects customers’ data, privacy and security” and “protects my personal data” were in the top three drivers of brand trust among global consumers, at 74% and 73% respectively, driving the peak of the returns. Data privacy compliance is now inextricably linked to the customer marketing journey.

Data privacy and its expectations — security and fairness — have an impact into the marketing relationship.

The Cisco 2021 Consumer Privacy Survey found that 86% of the customers care about data privacy, only using online vendors they trust. Unwelcome or unclear data privacy practices can see 32% of previously loyal customers actively moving away from a business solely due to data privacy concerns.

The 2022 Survey found similar trends, with 76% of respondents saying they would not buy from a company they do not trust with their data, and 81% agreeing that the way an organization treats personal data is indicative of how it views and respects its customers. The survey also explored how the use of AI has further impacted these views, with a majority of consumers concerned about its business use.

Data Privacy in Teavaro

Such trends point to a greater understanding of business practices amongst consumers and a new level of scepticism  when dealing with data privacy topics. The businesses who will come out ahead of this will be those who look to invest in people-centric solutions that further reinforce the trust of the consumer by providing transparency, control and benefits.

This is why we at Teavaro will continue to focus on data privacy as part of our core benefits:

Our mission is to truly connect people, brands and media​

We believe a true connection is built on explicit consent and grows over time as it offers unique value to all. The resulting relationships will be the foundation for scalable people-based marketing by tailoring content and interactions to individual people, not segments. This makes two-way communication possible.
Ben McDermott, Lead - ID and Compliance Solutions

About the author:


Head of Product – Compliance and Campaign Solutions

Ben has worked for over 20 years in media and digital marketing, with various positions at Intelsat and Amobee, prior to joining Teavaro in 2015.
Since 2018, he has been responsible for developing the product offerings of Teavaro, focussing on client-facing solutions for marketing use cases, customer consent and data management.

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Our mission is to truly connect people, brands and medias

We believe that a true connection is built on explicit consent and grows over time as it provides unique value to all parties involved.

Today we are looking into the challenge of creating the single customer view and how this challenge is linked to identity resolution.
The idea of personalising a service or a product in response to a customer’s need is as old as commerce itself, but in the past generation the internet, cloud computing and machine learning have given businesses an unprecedented opportunity to increase its reach and scope. When, in the noughties, Jill Dyché and Evan Levy tried to explain in a book (Customer Data Integration: A Single Version of the Truth, 2006) what customer data integration was like, this phrase had been already criticised for being a repackaging of previous notions such as Service-Oriented Architecture (SOA), Extraction, Transformation and Loading (ETL) or plain old Business Intelligence. But the criticism missed the point that the frontier of data analytics keeps shifting. As the volume of customer interactions has surged over the past years, new processes and technologies have become available to retain and link customer data so that companies can engender trust in both prospects and customers and make better marketing decisions. However, at every turn, such technologies and processes, together with the jargon associated with them, have had a short lifespan or seemed insufficient to keep pace with the plethora of new data. Reaching a single customer view (SCV) has so far remained an elusive goal – chasing the proverbial unicorn – but at every turn the instruments available have become more sophisticated. A SCV’s definition usually includes words like ‘holistic’, ‘accurate’ or ‘consistent’ to indicate that any successful effort to join the dots between various channels have to bridge the offline and online divide, break down data siloes, and improve data quality. For instance, in retail, this could mean bringing together e-commerce transactions, in-store purchases, contact information, browsing behaviour on the company website, call center interaction and email engagement. In this case a SCV would be the foundation of campaigns that do not target prospects who are unlikely to buy or have just bought the product you offer – such personalisation failures cost credibility – while instead cross-selling or upselling to customers who might be near the end of a subscription, have recently interacted with the social media or haven’t made any purchase recently. The more integrated the view of the customer, the higher the return on marketing investment. But the multiple points of entry of customer data pose real challenges to existing ways and systems with which businesses have worked so far. Customer Relationship Management (CRM) software stores data from customers’ direct interactions and keep tracks of how far along they have moved into the sales funnel, but is limited to transactions and communications with the company, usually not capturing information from other multifarious sources, such as social media, the website or the company app. CRMs stitch together information across some channels, but not across all of them. They also lack the machine learning power to unify data that might belong to the same customer but presents some discrepancies, for instance a misspelled name or address. As a system used by the whole company, it is not particularly oriented to marketers need; for instance it does not provide further segmentation insights for personalisation. Data warehouses, which ingest data for every area of the business, similarly lack capacity for identity resolution and, while useful for spotting patterns and trends, do not provide insights that marketers can action directly. Both CRMs and data warehouses are company-wide tools that are not specifically focused on marketing improvements. Businesses also often still work with Data Management Platforms (DMPs), which are tools more oriented towards marketers needs and do provide segments that can be used for personalisation. However, a limitation of DMPs is that they are disproportionately reliant on third-party data and/or anonymous first-party data tags, such as cookies, device IDs or IP addresses. Since the storage and usage of personally identifiable information (PII) is strictly regulated, DMPs must anonymise any data that they aggregate in profiles. While DMPs can provide anonymised audience segments for specific campaigns, they do not provide the single customer view across all data points that some marketing actions call for. Marketing Cloud Platforms fall short in this respect as well. The likes of Salesforce, Adobe or Oracle Marketing Clouds can be effective in delivering a message to an identified audience on specific channels, but their segmentation ability often relies on demographics characteristics (i.e. female, >40, UK-based) rather than on the last up-to-date registered behaviour. Also, they often constrain marketers into using a single vendor. Last type of software that has entered the solution set to create a SCV are Customer Data Platforms (CDPs) offering a precision tool for marketers that can sit with these others and enhance them. Initially hard to differentiate from other platforms, since they were first introduced a few years ago CDPs have emerged as offering the closest approximation to a true Single Customer View that the industry has so far achieved. This is because it is a tool with one single purpose, precisely the SCV, and aimed at one single team, marketers. In comparison to the platforms above, CDPs ingest data in real-time, so are always up-to-date; they work primarily with first-party and PII data; they capture offline, online, and multi-channel data; and they use machine learning power to join the dots between customer data in different shapes (avoiding data duplication) and to churn out segments that can be activated in personalisation campaigns. CDPs often complement, rather than substitute, other tools. Their precise configuration in any company, unsurprisingly, varies according to the sector, the type of customer and the business goals. It is your decision what data you want to prioritise and which datasets you want to match. That’s why Teavaro has started offering CDP functionalities as part of our product suite. Activating data through Teavaro’s CDP makes the customer journey as smooth and exciting as possible. No matter where you look, all types of solutions pop up in the market promising the best in market solutions for creating SCVs and data activation across devices, browsers and channels. All these promises can only be fulfilled, if the CDP solution is based on or paired up with a strong solution for Identity resolution and Identity Management like Teavaro FunnelConnect. Not being able to digitally identify your customers and visitors across different touchpoints and channels will take away every benefit your CDP Solution has to offer. It’s as simple as that: You have to know who you are dealing with, otherwise you can’t tailor your data activation on a one-to-one basis. If you want to learn more about our Identity Solutions and how they can benefit your digital marketing activities, please reach out! We are happy elaborate on your use cases and how we can help you achieve your goals.