It sounds counterintuitive, but increasingly stringent consumer data privacy rules can help marketers better target prospects.
After more than a decade of either willingly or unwittingly having their personal data collected as the price for admission for marketing offers and social platforms, users are understandably wary. In fact, a Marketo study of consumers and businesses announced in May found that 75 percent of European consumers are concerned about the extent of personal information companies might have access to, and just 42 percent of Europeans trust companies to use their personal information responsibly.
The European Union’s General Data Privacy Regulations (GDPR) went into effect in May to address that very issue. And it’s a trend that’s likely to quickly spread around the globe.
As part of GDPR, marketers in EU countries – along with those who do business with citizens in those nations – must renew permission from consumers who’d previously opted in to receive offers, information and more. What many marketers have found, however, is that the re-permissioning emails have fallen flat across the board. Many marketers say their opt-in lists have dwindled significantly because users are simply not opting back in. That’s backed up by a poll of Americans conducted by Media Post’s Research Intelligencer and Pollfish soon after GDPR was enacted that showed nearly two in three people contacted with re-permissioning options either ignored, opted out, or withheld their consent.
And that’s significant, particularly if the US (and other parts of the world) adopt GDPR-like similar regulations. According to a study conducted by OneSpot and The Relevancy Group in 2017, email marketing accounts for as much as 21 percent of total revenues among the companies polled. That’s clearly a revenue stream companies are unwilling to concede.
There are some bright spots in all this. While UK regulator Ofcom found four in 10 internet users are unhappy with companies collecting and using their personal information, about 33 percent of those same respondents said they “don’t object to behavioral targeting” if they can opt out whenever they choose, and if the company spells out how their data will be used and that it won’t be shared with other companies.
What’s clear is that while consumers enjoy the benefits of targeted marketing efforts, they’d rather not give up their personal information to get them. That’s where we come in: protecting consumer privacy while also opening the floodgates for marketers to get creative on offerings for their customers.
Our patented Privacy By Design artificial intelligence solution, JedAI, doesn’t collect personally identifiable data (PII) and is GDPR compliant. Rather than sharing the user’s data with the marketer, JedAI retains the user’s PII on the user’s smart phone and uses its built-in algorithms to then pull in relevant offers. The marketer reaches the right targets who are interested in their offers, while the users remain completely anonymous.
Using AI on the handset also gives users the possibility of opting in when it benefits them. For instance, a city-dwelling user might opt in to a program offered by her automobile insurer that provides the option of paying for insurance only on the rare occasions when she uses her vehicle. The AI solution ascertains when she is driving, and she is billed accordingly. The insured is a happier customer with a lowered monthly insurance bill. The insurer also benefits because it has the flexibility to create offers for drivers around their driving habits, including lowered rates for the safest drivers.
To learn more about how we can help your marketing efforts while retaining data privacy, contact us here.