Twilio Report Shows Consumers Want Personalisation, But Don't Trust Brands With Their Data.
Customers expect personalisation during every brand interaction - but they don't trust brands to keep their personal data secure and to use it responsibly. That's the dilemma companies everywhere are currently facing, according to new data from
The third annual State of Personalisation Report 2022 found that data privacy concerns are highest in APAC consumers (60%) compared to rates nearly half that in other regions. 62% of consumers expect personalisation, saying that a brand will lose their loyalty if their experience is not personalised - meanwhile, 49% will become repeat buyers if personalisation is offered. Yet only 40% of consumers say they trust brands to use their data responsibly and keep it safe.
The personalisation vs. privacy paradox
Delivering personalised experiences requires personal data, so changing consumer attitudes towards sharing data online creates a paradox for businesses.
First-party data, or data collected directly from customers with their consent, is optimal for privacy. According to the
Consumer privacy a generational challenge - and an opportunity
Companies have long 'rented' customer relationships from advertisers and social networks. These companies collect behaviour and demographic data and then resell it as targetable audiences. But sweeping privacy regulations - at both the government and corporate levels - are forcing companies to shift from renting to owning their customer relationships.
This pivot is not a simple one. Half of the companies
Many companies are already responding to these changes in consumer preferences, regulations, and technology, with 43% of business leaders embracing first-party data because it provides better privacy for customers.
Data and technology hurdles to personalisation at scale
Technology remains a hurdle for many companies. Tech giants have fleets of data scientists and massive budgets to achieve personalisation at scale, but
Technologies such as customer data platforms give businesses the tools they need to achieve compliance while managing first-party data for personalisation. Customer data platforms collect first-party data at every customer touchpoint to create a single, unified view of the customer. Business leaders are embracing such technologies, with 53% investing in better technology to manage customer data. These companies are equipped to build deeper customer relationships.
'A customer data platform is the brain behind a company's customer engagement strategy,' said
'This report reiterates the urgency for brands to relook at the tools and processes they have put in place to analyse customer behaviour and to earn digital trust. Brands can cater to the new reality and expectations of maintaining utmost confidentiality by collecting first-party customer data with robust customer data platforms. This further empowers brands to deliver data-driven, hyper-personalised experiences across the customer's preferred channel to build confidence, drive differentiation, and revenue results in this competitive landscape' said
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