In our experience-driven economy, data is the most important ingredient for crafting deeply personalised experiences and delighting customers. Yet the companies most notorious for enabling this – including digital platforms Facebook and Google – are in the spotlight after an official inquiry was launched by the ACCC. The inquiry will examine how these platforms gather information about consumers and use it to target them with highly personalised advertising online.

Many marketers may worry these developments present a Catch-22 for their work. How can businesses meet these competing demands for more personalisation and more privacy?

As a starting point, it’s safe to assume a few things. Managing customer data will become an increasingly critical trust point in any business relationship and doing so effectively will only get harder the longer you leave it. Yet the rewards for businesses that get it right will far outweigh the difficulties in doing so – and it’s best to start early than risk getting caught out.

A changing data landscape

It’s clear that consumers are increasingly recognising the power of data and are far more educated on its impact and value. They’re also far more critical of companies they think manage data badly. In fact, among Australian consumers, a whopping 78 per cent believe companies aren’t taking adequate steps to protect their personal data, according to Deloitte’s annual Media Consumer Survey. Close to nine in ten (88 per cent) say they strongly value privacy over convenience, according to a survey by Privacy Australia.

To address this shift, governments around the globe are setting new standards for how businesses can use customer data, from 2018’s General Data Protection Regulation (GDPR) in the EU to Australia’s Notifiable Data Breach Scheme, which requires entities to notify individuals and the Information Commissioner about data breaches that are likely to cause “serious harm”.

The ACCC added to the debate with last year’s review of loyalty schemes, such as
frequent flyer, supermarket and hotel loyalty programs, calling on businesses that offer them to improve both their data practices and how they communicate with customers, to help consumers understand how these schemes operate.

Now it is doing so again with its announcement of two new inquiries into possible anti-competitive behaviour by digital platforms, and services allowing online advertisers to target Australian internet users.

A red line from data to value

The good news is it’s easier than many businesses imagine. Start by offering customers transparency and control of their own personal data. Not only will this give customers a better understanding of your data practices but it can also let them define their own experiences, which builds trust. There’s no better partner to businesses than an informed, empowered and data-driven customer.

To achieve this kind of partnership, businesses can no longer offer vague language and promises as to what they will give in exchange for personal information. Consumers want and need to know, in the simplest language possible, exactly how their information is being used.

Businesses should speak directly to customers as individuals, giving them confidence that they are actually a part of the process of building better experiences. In retail, for example, this could include asking for location data in exchange for push notifications alerting customers to a sale if they approach their favourite store.

It’s a simple shift, but one that eliminates doubt and treats customers as partners.

Treating customers as trusted individuals

One of the major global regulatory changes around consumer data revolves around the channels and methods we use to ask for information. Under GDPR, companies with complex, multi-page user agreements can now receive a hefty fine.

Consumer data protection laws are as unique as the regions they cover, but a common goal is to create more transparent relationships between brands and customers. Giving customers the ability to pick and choose what they sign up for and which brands they engage with is an important sign of respect.

Whether it’s the “explicit consent” requirement of GDPR or the “right to opt-out” requirements that other global initiatives include, the underlying regulatory trend is clear: give customers the explicit ability to pick and choose what they sign up for, which brands they engage with, and the specific manner in which they wish to be engaged. Make it easy to find, simple to access, and fast to change.

That includes regular – proactively shared – options to opt-out if they have been
stuck on an email list for five years.

Handing over the reins

Another emerging trend is the creation of a centralised, intuitive portal through which customers can manage their own data. Think of it like settings on your phone. Customers would get the ability to turn specific levers on and off depending on the brand they engage with.

While these rights vary depending on the specific regulation, the common thread is clear: this is the new standard. Making it a key part of your customers’ experiences will show that you’re taking their data as seriously as they do.

Resetting the relationship

The global conversation around data has evolved significantly in recent years. From hacking and data breaches to exceptional data-driven customer relationships, personal information has become the foundation through which brands either succeed or fall short. With increasing scrutiny, such as the ACCC’s latest probe, you should expect the way you handle data to become increasingly visible, whether you are ready or not.

Brands can stay ahead of customer expectations and build trust by putting customer needs first, setting the highest possible bar for transparency and giving customers control and choice when it comes to their personal data.

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What do we mean by a seamless or frictionless experience?

In a seamless or frictionless experience, a customer has no need to go to any extra effort to complete a transaction or interaction with the brand. The customer can get what they want, when they want it, and have it delivered or presented to them in a way that is convenient for them.

When creating seamless experiences there are three main things to be considered.

1. Meeting the customer where they want you to be. A seamless experience means a customer can interact with your brand in any way they choose, whether that’s via a smartphone, tablet, desktop or at a physical outlet.
2. Consistency. Regardless of which offline or online channel they choose to use they are presented with a consistent level of prompt service where the customer sees the same branding, values and tone. The information they are presented is consistent, accurate and up to date across channels – there is no need to reupdate or re-explain past interactions.
3. Personalisation. What may be a useful or a great experience for one person may not be for someone else. A seamless experience also needs to be a personalised experience.

Data plays a critical role

To create personalised and seamless experiences you need to really understand your customers and their different customer journeys. That means using as much data and insights about them and their experiences as possible.

From this data you can understand their preferences, their previous buying behaviour, preferred methods of communication, and identify the areas in their journey where they are likely to experience roadblocks and frustration.

Customers are increasingly aware that to receive better experiences and higher levels of personalised service they need to share their personal data. They are prepared to share that data if they are confident that their data will be safe and protected and that their privacy will be respected.

They also need to know that they still own the data that they share with companies – and they can change what and how it’s used, whenever they want. Remember, companies are only the custodians of customer data; we do not own it.

You need to have systems in place that allow customers to have complete control of their data. They need to be in control of how and when a company uses their data, in what contexts and how long the company can hold onto that data.

Removing the seams and the friction

Unfortunately, barriers and friction can easily emerge across enterprises and they can be difficult to identify before they cause frustration for a customer.

Friction can come in many forms and impact multiple customer touchpoints and channels. The addition of new customer channels can make existing problems even more complex.

To start unravelling these seams, companies need to put the customer at the heart of everything they do. They need to understand how customers move across multiple channels to complete tasks and request information. Consumers don’t think in terms of channels or company departments – they will only think whether the overall experience they have with your brand is either a good one or a bad one.

The ability to capture and analyse customer feedback in real time is critical to identifying areas that may be frustrating customers. Real-time feedback combined with insights gleaned from your operational data allows executives and CX leaders to fully understand the customer experience. Importantly, it encourages them to be more customer centric in their decision-making processes and the actions they take to resolve issues.

In the last decade or so, we have seen a strong shift where companies are no longer in charge or have control over the buying journey. In that regards power has well and truly shifted to the consumer. Fortunately, however, companies do have control of the experiences they create at every touch point along that journey. In today’s experience economy, companies with the best experiences for customers will see the best results.

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