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Understanding personal data value

This is the data economy: what is your personal data value right now?

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While the world has been telling us that crypto is the new currency, it seems that something has pipped it to the post – personal data.  These days, you can’t talk about IoT (the internet of things) without talking about data. Although, in the marketing world, there’s much ado about the volume of data to be had, there’s not quite so much chatter about access.  Mueliner touches on this in his piece ‘The Internet of Things Will Disrupt Your Business – Will You Survive?’ when he address ‘data addressability’.  It is crucial that your business understand the importance of personal data value.

Mueliner says that, although connected devices are busy collecting and examining  our personal, behavioural data, we can’t assume automatic access to all the desired insights (especially given GDPR).  

These days, consumers are more aware than ever before of the fact that their data is being collected – and are becoming more savvy when it comes to the value attributed to their data.  

As personal data fast becomes a form of currency, we can expect consumers to stop giving it away quite so freely.  This means that if a brand wants a consumer’s data, they’ll have to be prepared to give something in return.

Experience Impacts the bottom line, for better or worse
Source: Salesforce

Transforming personal data value exchange into KPI  

In his article, Mueliner says that it’s vital that marketers start thinking of ways to transform the customer value exchange into a KPI (key performance indicator).  This means finding ways of getting instant, high value benefits to your customers in exchange for their high value data. Marketers need to be constantly thinking of simple but innovative ways of proving to customers that they’re getting a fair swap in terms of value for data.  

Doing away with dastardly data practices

As we’ve seen in the press for the last few years, it’s no longer acceptable (or legal) for brands to get their hands on data without a customer’s express permission and full transparency.  As consumers’ awareness of data rises, so does their mistrust and, brands need to work harder than ever to prove that data security is at the heart of everything they do. This promise needs to be embedded in the brand at every level in order to encourage trust. 

Trust between brand and customer is imperative for a successful relationship.  This means telling the customer that you’re taking the data and making it clear to them how their data will be used.  Mueliner says, ‘Don’t hurt your brand because you didn’t think through the implications of managing data.’

Source: dunnhumby

Personal data value direction and management

The relentless evolution of technology means that more and more of our devices are capable of collecting, storing and exchanging personal data.  As this data continues to come from many different directions, managing it becomes more and more of a priority. Jared Fink of design and strategy company, Frog NY, says that brands can help to automate their data management and untangle the confusion of self-select.  Even better, brands can begin to mediate data sharing in order to empower customers to manage their own data. All of this means that data is fast becoming a commodity and, an emerging currency which may even be bought and sold on open exchanges. 

Enter your customer service dream team

One way of managing the data relationship with customers is to harness the power of personal data customer service teams.  These teams hold the key to building consumer trust and loyalty through 100% transparency – including advising customers on practical moves such as turning app services off and disconnecting personal information – all within their own set of personal preferences.  These teams can also have the ability to reward customers for handing over behavioural data with products, improved access and other benefits. In addition, these dream teams can manage, automate and even secure personal data across several devices; in a similar vein to a credit report.  By offering customers data reporting, trust is automatically increased. 

Data disruption and opportunity

There are those who speculate that, in the near future, we’ll be collecting data in household objects such as pots, pans and toothbrushes – and that a major disruption will be underway as everyday objects become network; making them multi-action and, even slightly sinister.  When these objects take on a heightened role, we’ll see a surge in the way that data is analysed – enter the Data Opportunity Analyst who will oversee incredibly important new streams of data and transform them into new value within the customer experience. Fink says, ‘These new data sources could personalise the physical environment or the customer experience,’ which will, hopefully be the case.  Also true is the fact that using these objects – and their data – will be used to further enhance the customer experience.

Big data grows up

As the IoT continues to permeate every aspect of our lives, including increased interest in wearables and even smarter home technology, it will bring with it even more challenges.  Managing an increasing number of networks and data sources will take serious work in order to avoid catastrophe. These advances will offer a huge number of new big data possibilities – and an increased level of responsibility in order to manage them.  Above all else, brands need to remember who they’re working for – the customer.  

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