How Important are Data Protection & Brand Transparency?

As we complete a year in isolation it is likely no surprise to marketers to see huge increases in social media usage for the past several months. According to Paul Neto, the co-founder & CMO of Measure Protocol, & the American Marketing Association (AMA), the rise in technology usage has provided us with huge amounts of consumer data. They suggest that with the correct data that we can find new consumer insights and interests. There is one important thing to note - that consumers hold a growing concern for the privacy of their data.

The AMA urges marketers to build trust with consumers in relation to their data collection and data usage. Additionally, in my personal experience as a consumer, if a company makes an effort to present its data collection and usage in an upfront and readable manner, I am more likely to trust that organization and accept cookies or provide data.

Simply highlighting the main data collection methods or what exactly the data will be used for will establish a brand as transparent and trustworthy. The AMA also encourages organizations to understand a few key elements of consumer data:

- "Data sovereignty: Consumers own and control their data and provide explicit consent for sharing.

- Privacy by design: The environment for sharing data must be firmly grounded in the protection of each individual's privacy - and this commitment must be clearly communicated.

- Fair reward: People who choose to share data must receive fair incentives; In fact, our [the AMA] research showed that 85% of people prioritize compensation for sharing information.

- Transparency: Greater levels of transparency should be used to achieve accountability and build trust with individuals and buys alike—and in a safe way that doesn’t compromise privacy. We [the AMA] found that 77% of people would share more data if they felt that the organization asking for information was more transparent."

Although some or all of these concepts may seem simple to you, not all brands establish trust between themselves and the consumers. To simplify everything stated above, by respecting the rights of consumers, marketers may collect better data and develop a more meaningful relationship with their audience.

This is especially important for organizations to note as they develop their brands on social media. While the protection of data collected from these sites may be up to the individual platform, a brand can always make an effort to appear more transparent. Posting about your efforts to protect consumer's data, whether that data comes from a website or other digital platform, is essential in building that transparency. This will not only help with the collection of useful data, but it may aid in the development of a bond between consumers and brands.

Finally, to answer the question, how important are data protection and brand transparency - VERY! Consumers are less likely to provide their data to a brand or to follow a brand that appears even slightly shady. As always, when working in marketing, we should hold consumers' needs to the utmost importance and rise above ethical gray areas.

Source: https://www.ama.org/marketing-news/accessing-the-next-generation-of-consumer-behavioral-data/