Privacy Over Personalization

Source: https://www.conference-board.org/press/data-privacy-survey-nov2020

In my last blog post I discussed the recent surge in potential digital identification solutions as marketers desperately search for a tool to replace third-party cookies. These identification solutions are imperative to being able to deliver personalized marketing to consumers, with the ultimate goal of increasing conversion rates. However, these efforts may all be for naught if marketers do not start focusing on gaining back consumers’ trust regarding data privacy.

According to a recent study by The Conference Board in collaboration with Nielsen, more than half (57%) of US consumers would give up personalization in order to protect their privacy. In fact, 19% of consumers said that they switched to a competitor’s brand simply because they were concerned with the original brand’s data privacy practices. Unfortunately for marketers, this adds another layer of complexity to the already complicated arena of global data privacy rules and regulations. Consumers are clearly highly skeptical of brands’ intentions and very concerned about data privacy issues.

This is not only a US phenomenon, but also a global one as well. Although less than half, a still staggering 44% of global respondents felt the same way as US consumers. This signals that privacy protection concerns are not simply a US problem. This may make navigating the global world of marketing more complicated, but marketers need to directly address these consumers’ concerns if they want personalization to remain a viable option.