The Considerable Advantage Of A Two-Way Data St

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Traditionally data sharing hasn’t been viewed as a way to strengthen customer relationships or generate a competitive advantage. In fact, a new study from U Penn (University of Pennsylvania) has shown that 91% of customers are not happy giving up their data out of a sense of reciprocity with brands that offer incentives (as most marketers believe) and 41% think they have little control over what data marketers are allowed to collect. Further research by Frog confirms that “consumers are aware that they’re under surveillance—even though they may be poorly informed about the specific types of data collected about them—and are deeply anxious about how their personal information may be used.”

So what if you could turn the tables by creating a transparent data feedback loop that instead of only extracting data, was used to create valuable insights for your customers as well as your company?

“As data becomes more pervasive, a healthy data loop with brands will be expected and rewarded by increasingly data-savvy consumers. It’s no longer just about how your company can extract valuable insights from your customer data, but how the data can create value for your customers. By imparting valuable data insights to their customers, companies can strengthen relationships, avoid attrition, and increase product/service usage. Just like informed marketers make better decisions, so do informed customers.”

What are some examples of where data exchange provides value to both parties?

Samsung’s Galaxy V smartphone uses digital exhaust to automatically add the contacts users call most to a favorites list. Google’s predictive application Google Now harnesses profiling data to create an automated virtual assistant for consumers. The app depends on more-valuable types of personal data but improves performance enough that many users willingly share it. Disney likewise uses profiling data gathered by its MagicBand bracelet to enhance customers’ theme park and hotel experiences and create targeted marketing. Consumers know exactly what they’re signing on for, because Disney clearly spells out its data collection policies in its online MagicBand registration process, highlighting links to FAQs and other information about privacy and security.

Image: hbr.org

 

 

In : STRATEGY

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