can vs should and why it matters in data-driven marketing

Can vs should, and why it matters in data-driven marketing

Exploring the relationship between data, technology and ethics

Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing

There’s never been more data and marketing technology than there is today.

• Data production in 2020 will hit 35 zettabytes — 44 times more than in 2009.

• Between 2011 and 2016, the number of MarTech solutions increased >2200%1

1. http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/

2009 2020

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size of total data

enterprise-managed data

enterprise-created data


The pace of data expansion is astounding.

Driven by the growth of digital technologies and the rapid increase in data generation by individuals and corporations alike.

Source: CSC

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To succeed, brands need data-driven marketers to:

• Find customers wherever theyare,onlineandoffline

• Understand and react to customer needs and behaviors in context

• Engage customers in more valuable and meaningful ways

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But as marketers ramp up the adoption of new technologies and data to compete and innovate, it’s important we stop and realize…

Just because you can do something, doesn’t mean that you should.

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There has always been a divide between what marketers can do with customer data and technology, and what customers deem to be acceptable. In other words, what we should do.

Technically Possible

Legal

Acceptable

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Right now, our abilities are evolving faster than ever before. Much faster than we can consider the ethical implications of putting them into practice.

The result is a problem of can vs should.

And we believe it’s one of the biggest issuesdefiningboththe perception and practice of data-driven marketing.

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The trouble is, all this innovation is dramatically outpacing both regulators and consumer awareness.

Should your IoT-enabled refrigerator be able to keep track of how much ice cream you eat in a month, tally up the calories and email them to your nutritionist?

% Calories per monthfrom ice cream

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Should your internet- enabled car automatically report speeding to the insurance company, or the police?

Shouldyournewfitnesstracker with a heart monitor be able to send readings to your doctor? Or call 911 if you are having a heart attack?

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Passing effective regulation takes time…

Government- and industry- based consumer protection agencies do provide rules around the collection and use of data.

The FTC, FCC and other regulators are closely monitoring how marketers are now combining those datasets to gain new insights with new and innovative technology.

But the very nature of passing regulation makes keeping pace with innovation a near impossible task.

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And consumers aren’t sure where to draw the line

Consumers are the ultimate arbiters of whether or not their data is being used ethically. Only they know what ‘acceptable’ looks like. But it’s also completely subjective, which means it’s as changeable as they are certain.

That means when it comes to crossing the line, the line is always moving, so we have to accept it’s a case of, “I’ll know it when I see it.”

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It’s possible to be legally compliant but still in breach of what your customers deem to be acceptable and welcomed use of their data.

This puts your reputation, trust and loyalty at risk. And leaves you with little control over the way your brand is perceived.

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What’s more, those same consumers are able to express themselves like never before. The amplification of one complaint on social media can galvanize and publicize many more that would have once gone unheard.

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So here’s the thing – if marketers rely on consumers and regulators to navigate and make sense of the ethics and capabilities gap, we’ll always be reacting.

On the other hand, if we definethestandardsfortheethical use of data, we can start to proactively build trust across brands and the consumers they serve.

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We have to bridge this gap together.

As responsible marketers weneedtoactnowby,first,acknowledging that merely complying with regulation willneverbesufficientand second, starting a conversation with our consumers about how their data is used.

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Tackling this problem at the ethical rather than legal level means protecting hard-won customer loyalty

by going beyond what the law requires. This is about differentiatingyourbrandwithclearlydefined

governance around the use of customer data.

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5 guidelines for the ethical use of data

In September 2014, Acxiom Corporation hosted a unique forum at the National Press Club in Washington, D.C., to address the ethical challenges of big data in today’s data-driven marketing ecosystem.

Thegroupidentified fiveguidelines:

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Maximize transparency and choice

Posted privacy policies must be clear about how the brand intends to use and share consumer data for marketing purposes.

#118


Classify data and mitigate possible use risks

Differentclassifications,such as second- or third-party data, will help identify possible use risks and the appropriate mitigations.

#219


Limit downstream risks

When sharing data, providers should have contracts with all downstream data users to ensure appropriate use. Consumer data should be anonymized wherever possible.

#320


Help to enforce ethical practices

Have privacy discussions with your marketing partners early and often. The ecosystem should haveadefinedprocess for investigating and taking appropriate action against bad actors.

#421


Educate consumers about common marketing practices

The industry as a whole should seek to educate consumers about common practices so they can exercise the choices they’re offeredinaninformedway,without fear of the unknown.

#522


Let’s be honest, opening a dialogue with the aim of developing an industry-wide consensus is not easy.

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But the consumer reactions have already begun. Ad blockers, ad and app choices opt-out are all examples ofaconsumerfight-backagainstwhatthey feel to be invasive, opaque and untrustworthy uses of their data.

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We need a new, ethics-led approach to solutions.

Otherwise we’ll always be behind the ball.

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If we act now, we can maintain the flow of information and take advantage of new technologies without fear of harm.

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Most important of all, it means earning our customers’ trust by putting ethics at the heart of what we do with their data.

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Readourebook: The New Codes of Conduct: Guiding Principles for the Ethical Use of Data for a more in-depth exploration of what’s at stake and what it takes to get this right.

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Acxiom provides the data foundation for the world’s best marketers. We enable people-based marketing everywhere through a simple, open approach to connecting systems and data that drives seamless customer experiences and higher ROI. A leader in the ethical use of data for more than 45 years, Acxiom helps thousands of clients and partners around the globe work together to create a world where all marketing is relevant.

www.acxiom.com


can vs should and why it matters in data-driven marketing

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