Digital Consumers and Data Collection

3rd October 2012

Dealing with the digital consumerDavid Reed, editor, Journal of Direct, Data and Digital Marketing Practice

Know your rights

What do you think is the main purpose of the Data Protection Act?

Rights, not preferences

From carefree to careful

DMA Data Privacy study:

✤ Pragmatists - will exchange reasonable amounts of data for better services

Fundamentalists - unwilling to exchange data regardless

Unconcerned - carefree (careless?)

Shifting balance of power

Marketers need to make sure they are not ahead of the consumer in technology and not behind them in their understanding of the data value exchange

Vanilla services for the fundamentalists v fully-featured for the adventurous?

Get ready for greater dynamism around consent - opt-out/opt-in will not be valid for ever

Likers vs Haters

When a company asks for your contact details, describe your attitude

Less Trust

Less Hate

Truste cookie audit

Website compliance with ePrivacy Directive (231 sites)

Data Capture and Risk Reward

The SCARF Model:

Status

Certainty

Autonomy

Relatedness

Fairness

Certainty, Fairness and Privacy 1 - lead on user experience (BT)

2 - making it personal (Silktide)

3 - lead on trust (BBC)

4 - making it general (Channel 4)

5 - avoid confrontation (Barclays)

6 - be formal (Financial Times)

7 - use humour (Best Western)

sticky-content.co.uk (http://goo.gl/NRxgB)

Certainty, Fairness and Privacy

Reason and emotion

Aligning policies and data capture techniques with the brand personality could positively influence permission-to-market rate

Consumers are far less rational than we believe - 6/10 can not explain why they make decisions they do

Risk of dissonance between brand appeal that draws consumer in and sudden rational demands of permissioning

Impact of choice

When an organisation asks for permission to use your data,are you given enough choice about how it will be used?

Choice and Opt Out

(Source: DMA Data Tracker Wave 3 April 2011)

Growth of consumer choice

Presence of cookies notices and privacy policies is growing awareness of choices, rights and controls

Data Protection Regulation proposals may require consent to everything - processing, marketing, profiling

Presumption of data absence may need to inform way services and marketing are developed and delivered

Social media and privacy

If you are on Facebook, which of these statements do you agree with?

Less fear

Less trust

Uses of Facebook

Status seeking

“Haters”

Virality

(Source: Gothernberg Research Instute - “Sweden’s Largest Facebook study”n = 1011)

DDDMP 14.1 - The Case of Facebook

An investigation into the extent to which social networks influence purchasing decisions through a quantitative analysis.

Researches beyond usage into Facebook-mediated marketing communication.

“Facebook promotes a consumer-to-consumer approach, exploited by consumers to share experiences and create a common knowledge of products and services...provides managers a direct channel for communicating with clients through a business-to-consumer approach.”

Hypotheses:

Ease of use of FB influences role as support tool in decision-making.

Ease of use has a direct influence on gathering information through this source.

Usefulness of messages influences attitude towards using FB for information about purchases.

Attitudes towards FB influence intention to use it as a support tool for purchasing decisions.

Enjoyment of FB influences perceived usefulness.

Enjoyment influences attitude towards role as support tool for purchasing decisions.

Enjoyment of FB influences behaviour in using it for this purpose.

Ease of use has a direct influence on enjoyment.

DDDMP 14.1 - The Case of Facebook

Anonymous survey among students in Southern Italy, generating 187 responses.

Proved all hypotheses (except number 1)

“Users appreciate the presence of firms/products...and take into account recommendations and suggestions.”

“Managers could improve the fun provided by pages by adding games, contest and applications.”

“Marketers would consider the link between a high level of enjoyment...for positively affecting consumer purchasing decisions.”

The pleasure principle

Is your data collection screen and privacy policy “fun and enjoyable”?

Opportunity to be part of the social network and leverage earned media, but only with a softer, yet reassuring approach

Data capture, management and compliance needs a dose of creativity!

Questions?

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01449 677554