The New Era of Data-Driven Marketing Requires Collaboration and Trust

Before analyzing the topic of our article, we suggest making a small excursion into the past. The first forms of marketing in the form of price policy and marketing took place at the beginning of the formation and development of commodity-money relations. And in 1650, a member of the Japanese trading firm “Mitsui” opened an analog of a general store in Tokyo, where some of the principles of marketing were used for the first time: a collection of information about the demand and supply of goods, pre-ordering of popular goods, the warranty period for returning goods, advertising, etc. That is, already here, we see marketing based on data creation. Of course, there have been many changes and technological developments to the present state of this field. And now, the era of new changes has come because the methods used by marketers during the last two decades, when people actively began to use computers, laptops, and phones and make purchases online, are no longer as effective as before. I think every user began to notice that recently on almost any website, there is a window that displays information about granting permission to collect your data. Some people are annoyed by it, and some are not. There is always the question of where this data is sent and whether it is safe. This question has turned from a personal one into larger-scale forms. 

Technological, industry, regulatory, and trends are completely changing how data is provided, accessed, authorized, and used for marketing purposes. Users need to know that their data is used only for positive purposes and that it does not cause security problems in the future or, worse, identity theft, fraud, and so on. Of course, the new regulations of the European Union’s General Data Protection Regulation, the California Consumer Privacy Act, and the California Privacy Rights Act present new challenges to companies and, in particular, to the marketing team. But getting out of the usual comfort zone always gives rise to growth. The new rules encourage qualified marketers to look for new approaches and solutions to provide a personalized experience and increase sales.

Recently, the Forrester Consulting company conducted a relatively large-scale study in which 314 global heads of agencies and brands participated and answered several questions. The initiative was provided by the company Tapad, which is part of Experian. So, let’s see what results they got based on the work done:

  1. More than 70% of survey participants said that consumer data is becoming the primary resource for promoting their marketing company. Based on this data, they create personalized multi-channel services for their audience.
  2. More than half of the respondents agreed on the issue that new laws and methods of regulating the use of personal data of users make the current marketing methods ineffective and will not work in the long term.
  3. About 60% of respondents admitted that the impact of the new rules will have either a critical or at least a significant impact on the direction of marketers’ work. And this will happen over the next two years.

 

The above statistics make it clear that advertisers and marketers are in dire need of innovative ways to improve the robustness and clarity of their data in order to transition smoothly into the next era of data-driven marketing.

One of the ways out of this situation can be cooperation with other projects that can ensure the safe use of data. An example of this is data clean rooms. They enable collaboration while preserving privacy and data rights while under no circumstances revealing individual-level details to data owners. In this space, identity protection, even at the segment level, must protect against re-identification.

Aligning the organization around the consumer

Sounds cool, but the question is how to achieve this. The answer will be additional investment, so not very pleasant, but necessary, and close cooperation between the finance and marketing functions. They will need to agree on measures of success. In addition to the financial component, if we talk about broader interdisciplinary cooperation, then legal teams, products, data, creatives, designs, and IT should also be coordinated with marketing. Processes and prioritization should evolve as needed and encourage collaboration with relevant stakeholders. You can make a list of questions for yourself about the current state of the marketing strategy’s success and honestly answer them to understand in which direction you should move and what you need to work on. Or you can use the professional services of an outsourcing company that provides business analysis service. Under such circumstances, you will receive a detailed and, most importantly, objective analysis of the company’s current state and ways of improvement at the marketing level and in general.

What actions should be taken?

  1. Make sure everyone involved has a clear and, most importantly, shared vision of the goals and execution plan with key performance indicators and defined program metrics that relate to overall business performance.
  2. Analyze ROI, values ​​, and costs.
  3. After developing a plan for further actions, agree on an appropriate budget. Of course, the costs and progress of the work must be controlled, meaning a model must be chosen to create accountability around data activation at scale. It can be a separate team.
  4. As another variant of the previous point, you can appoint one person to this position who will already assemble a team, and they will individually work on the effective use of data within the framework of the new regulations.

Effective data-driven marketing takes advantage of every opportunity to improve customer experience and optimize results in these fast-paced times. New dynamic strategies go beyond regulatory requirements, thereby using the positive side of the situation, so to speak, and contribute to satisfying customer expectations for entirely different companies. To remain competitive, responding flexibly and quickly to all changes is necessary.

 

Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.

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