Personalization and Privacy- Can They Live Harmoniously Together? - GDS Group

Personalization and Privacy- Can They Live Harmoniously Together?

Article - CX
By Ellen Fearnley|14th November 2022

Creating personalized experiences for customers remains top of mind for brands.  However, personalization cannot be achieved without data, and data can’t be discussed without privacy. As many consumers are scrutinizing what is being done with their data, this creates a push pull tension with data strategy across the business.  

How Important is Personalization?

According to the 2022 Gartner Customer Service and Support Survey, “71% of B2C and 86% of B2B customers expect companies to be well informed about their personal information during an interaction”. It’s clear that consumers want a personalized experience on the channel of their choice in the moments that matter. Yet, consumer buying behaviour has changed and several businesses are looking to be more aligned to what their consumers need and when.  

Why is Privacy Increasing?

It’s clear the crack down on the misuse of data is happening. “By 2025, 75% of the world’s population will have its personal information covered by modern privacy regulations,” says Brad Fager, Gartner Senior Director Analyst. “This reiterates the need for brands to leverage customer data with a proper understanding of customer preferences, terms of service and relevant regulation.”  

How can personalization and privacy go hand in hand?

  • Be Transparent: Multiple publications agree that transparency is key. Being transparent with data allows consumers to fully understand the intent and use of their information.
  • Get Consent: Allow the customer to choose what they want you to do with their data, so they are in control. 
  • Don’t Profit on Data: If customers are trusting you with their data, you may frustrate them if you look to reap a financial profit with their information.
  • Be Purposeful: Don’t just collect data because you can, make sure there is a purpose for it. 

To summarize, privacy and personalization can live together but it requires businesses to be clear, concise, and honest with their messaging. Also, by giving the power back to the consumer, businesses can benefit by getting clear insight of each data transaction. 

GDS Group hosts events covering topics like this one and many more. If you found this interesting and would like to hear more, head over to GDSGroup and see what else is available.  

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