How Can Privacy be Profitable?
For any organization holding its customer’s personal data, GDPR and CCPA have upped the ante on Privacy. The big question for marketing and product leaders is ‘How can privacy be profitable?’
Chasing the goal of profitability through privacy, I curated the Privacy Conference at Web Summit 2019. I attended sessions relevant to privacy seeking answers to 7 questions (each question links to the answers):
- Is big tech prioritizing profit over privacy? Brittany Kaiser (Digital Asset Trade Association)
- Are we approaching a tipping point with personal data acquisition? Matt Brittin (Google) and Margrethe Vestager (EU Commissioner)
- Are privacy regulations sufficient to protect us? Edward Snowden, Margrethe Vestager (EU Commissioner) and Brittany Kaiser (Ex-Cambridge Analytica)
- Have marketing services and advertising companies embraced privacy? Sir Martin Sorrell (Executive Chairman, S4 Capital) and Edwina Dunn (CEO, Starcount)
- Are data brokers and infrastructure providers changing their platforms? Jonathan Westley (CDO Experian), Zulfikar Ramzan (CTO RSA Security)
- How are B2C Brands operationalizing privacy into their propositions? Barbara Martin Coppola (CDO, IKEA), Ruby Zefo (CPO, Uber)
- How can we make privacy profitable? Next Steps for Marketers by Gam Dias (3Points Digital)
Next Steps For Marketers
As a marketer, your job is to create and nurture product markets. Data has been incredibly effective in enabling this, yet without regulation has created paths to exploitation and bad actors. New regulations put a throttle on current customer acquisition practices and engagement models. Yet there is an opportunity right now to turn this constraint into competitive advantage. Here are 6 steps to move to a privacy-for-profit model.
First build trust
- Implement Governance: establish an actual operation model for governance that goes beyond compliance.
- Offer Transparency: ensure that your current customers gain transparency into how their data is used and the benefit they receive.
- Enable Control: give them some means of control, there are many third party solutions that could be leveraged.
Then find profit
- Determine Value Proposition: what are new propositions that can be created out of consent. What are the data products, what is the consumer offer?
- Create the Value Chain: what is the data value chain required to deliver a profitable business. How do we create a data mobility infrastructure and work with partners to create new value?
- Make it Scale: how can the profitability grow as that proposition scales? What are the business models and data value projections that will justify investment?
3 Points Digital’s Personal Data and Privacy practice will help you find the profit model in your privacy preparations. We provide interim Chief Data Officers and frameworks for Governance, Transparency and Control.
Web Summit 2019 Videos
In Conversation with Edward Snowden. Edward Snowden and James Ball
Can anything be Private Anymore? Brittany Kaiser, David Chaum and Joseph Menn
Combating the weaponization of data. Brittany Kaiser, Digital Asset Trade Association
Google at 20, digital as a force for good, Matt Brittin, Google
Knowing your customers, easy to say, so hard to do, Edwina Dunn, Starcount
Building the next great ad’ empire, Martin Sorrel,S4 Capital
Experian’s approach to data innovation. Jonathan Westley, Experian
The future of digital identity in the era of digital transformation Zulfikar Ramzan, RSA Security
Daring to go beyond customer centricity. Barbara Martin Coppola, IKEA
Privacy meets innovation in a global marketplace, Ruby Zefo, Uber