Concern about privacy has reached a boiling point. Consumers, regulators, web browsers, advertisers, and brands … all evolving to meet the ever-changing privacy landscape. Marketers think of the best way to reach customers, taking into account their privacy.
We see what lies ahead for consumer privacy in 2020 and what brands can do to gain or maintain trust and gain a competitive advantage.
The impact of privacy in 2020
With the implementation of the California Consumer Privacy Act (CCPA), effective January 1, 2020, marketers can expect more states in the United States to enact their own consumer privacy rules, resulting in laws nationals.
2021 will bring more legal battles for companies like Facebook, which will be forced to change the way marketers can target ads to consumers.
Browsers and manufacturers fight for privacy
As consumers’ attitudes towards privacy change, personalized experiences that give consumers control over their data are essential to the future success of the brand.
Consumers’ desire to have control over data is forcing browsers and manufacturers to constantly update versions of their systems to solve consumer problems, such as deleting cookies, reducing the use of location data, and more. To avoid losing consumer confidence, web browsers will endeavor to create the appearance of privacy advocates who put customer interests first.
Since no organization wants to be considered “anti-privacy”, brands are trying to give customers more options to remain anonymous and provide greater transparency about the data they use and how it is obtained.
Digital advertising went beyond walled gardens
Lack of transparency, performance fraud, ad blocking, and spam frequency are trademarks of the digital advertising industry. The result is low engagement. Due to the “walled gardens” created by advertising giants Google and Facebook, we will see digital ad formats becoming less personal in 2021. This is a complete departure from the hyper-goals that have plagued us in the past decade.
Privacy gets in the way of traditional marketing cloud providers
Traditional cloud marketing providers, such as Adobe, Oracle, and Salesforce, have long relied on cookies to “spy” on consumers and document their behavior to help brands sell to unknown users. However, this tactic is not as easy as it used to be.
In the coming year, marketers will use third-party data, that is, data that is consciously and proactively shared directly with consumers. This strategy encourages personalized marketing with the consumer’s consent to build direct relationships with them.
The revival of loyalty programs
Finally, in 2021, you can expect brands to double their loyalty programs to reward individual interactions with customers.
The increase in consumer privacy laws and measures to limit the use of tracking cookies will cause a paradigm shift in communications between brands and customers. However, many consumers like to exchange personal information for loyalty points, personalized offers, and benefits.
In the coming year, we will see a boom in loyalty programs as a way to collect consensus-based data and boost customer engagement. Done right, this strategy can help provide customer experiences that create affinity, bonding, and trust between a brand and its customers.
In 2021, consumers will reward brands that really try to ensure that their data strategies are developed by incorporating privacy into their solutions and no longer tracking cookies and switching to data that comes directly from consumers for personalized experiences.
Those who invest in loyalty programs that offer the right rewards at the right time, give consumers a voice and create an emotional bond between the brand and the public, gain consumer confidence and experience significant increases in visits and expenses as a result the near future.