Recently at Advertising Week in New York 2019, data was at the forefront of almost every conversation, session and panel. Data has become a major priority for businesses of all sizes. Collecting User data allows you to store and analyze important information about your existing and potential customers. Collecting this information helps companies to build a database of customers for future marketing and retargeting efforts. Also collected data helps marketers to gain insights into the tastes, preference, behaviors and habits of their audience and then make necessary changes improve their conversions rates.
- Snapchat users share 527,760 photos
- More than 120 professionals join LinkedIn
- Users watch 4,146,600 YouTube videos
- 456,000 tweets are sent on Twitter
- Instagram users post 46,740 photos
- 3 billion people access internet every day globally
- 1 billion active users on Facebook everyday
- Average person conducts 3-4 searches per day
- Google process 2 trillion searches everyday
According to Accenture, there’s $2.95 trillion of potential profit at stake through 2025 for retailers that want to personalize customers’ experiences. Customer data is a focus area all its own. From consumer behavior to predictive analytics, companies regularly capture, store and analyze large amounts of data on their consumer base every day. Some companies have even built an entire business model around consumer data, whether they create targeted ads or sell to a third party. Customer data is big business.
How do businesses collect your data?
“Customer data can be collected in three ways – by directly asking customers, by indirectly tracking customers, and by appending other sources of customer data to your own,” A robust business strategy needs all three. The most obvious places are from consumer activity on their websites and social media pages, but there are some more interesting methods at work as well. One example is location-based advertising, which utilizes an internet-connected device’s IP address to build a personalized data profile. This information is then used to target users’ devices with hyper-personalized, relevant advertising. Data collection companies also purchase it from or sell it to third-party sources. Once captured, this information is regularly changing hands in a data marketplace of its own.
Internet penetration and growth in e-commerce has helped big companies like Amazon, Groupon, Rakuten Inc and many more in user data collection, storage, processing and analysis of personal information of millions of customers and it uses that data to fuel its customer-centric approach through algorithms that market to consumers and encourage purchasing on the platform by presenting products that are customized to their preferences. There’s no doubt then that data is a very, very valuable resource, and that companies are capitalizing on that resource.
Importance of GDPR (General Data Protection Regulation) & CCPA (California Consumer Privacy Act) policies in data collection
Lack of Trust from the consumer in how companies treat their personal information has led government to intervene and draft strict data privacy regulations designed to give individuals a control over how their data is used. According to the latest digital report from DMA, 41 percent of the respondents said they don’t want to get targeted with the personalized communication. Security concerns, a wish to avoid unwanted marketing, or the risk of having their data resold were among their top concerns.
Data privacy regulations are changing the way businesses capture, store, share and analyze consumer data. Businesses that are so far untouched by data privacy regulations can expect these types of laws to proliferate as more consumers demand privacy rights. Data collection by private companies, though, is unlikely to go away; it will merely change in form as businesses adapt to new laws and regulations.
What types of privacy data does the GDPR protect?
- Basic identity information such as name, address and ID numbers
- Web data such as location, IP address, cookie data and RFID tags
- Health and genetic data
- Biometric data
- Racial or ethnic data
- Political opinions
- Sexual orientation
Future Requirements as per the new policies before collection user data:
- Requiring the consent of subjects for data processing
- Anonymizing collected data to protect privacy
- Providing data breach notifications
- Safely handling the transfer of data across border
A good customer data is the cornerstone of marketing today. Your data needs to not only fuel every part of your marketing efforts, it needs to be the foundation of your brand. The value of data also can be measured easily. As per recent study by “Deloitte”, many of today’s most successful companies have demonstrated, data appreciates in value when translated into meaningful information.
Gagan Uppal Bio:
Gagan Uppal on the surface, a digital expert with more than 11 years of successful experience. He’s one of the top 100 professionals advocating blockchain. Currently, he is a director of strategic partnerships at the TechVantage. He has a proven ability to learn and implement the same. He is creative and can deliver solutions in the online platform, which are apt and innovative. He always a team player with a great skill to analyse and summarise ideas. His specialities lie entirely in- Start-up, Mobile monetisation, digital evangelist, business development, & conceptualisation on all digital things. He was responsible for generating revenue. In his career, he held decision-making position at AdsDax and managerial positions for companies India Today Group, Times, Internet Limited., India.com and Zenga TV.