Marketers know data is essential to create effective targeting and to produce highly relevant and engaging campaigns for new customer acquisition, existing customer retention and lapsed customer winback efforts. ‘First Party Data’ such as purchase activity and digital exhaust information (the trail of data left by online activities), are crucial to these efforts. The insight created from other sources, such as demographics and attitudinal information, are also important especially when creating the content and imagery needed to attract the consumer’s attention. However, this ‘Third Party’ is under attack. In Europe for example, the General Data Protection Regulation (GDPR) requires organizations to obtain explicit consent when gathering and processing data from individuals (amongst many other things). The U.S. is catching up and there is legislation in California today – the California Consumer Privacy Act (CCPA) – giving citizens the right to know their personal data is being collected, the right to have their data deleted and the right to opt out of the sale of their personal information. Nevada has followed California by amending its privacy law to provide consumers with the right to opt-out of the sale of their personal information by website operators. Virginia, Florida, New Hampshire, Washington state and Illinois all are considering similar legislation.
Despite these restrictions, consumers expect an ever-increasing level of service and personalization. This creates the need for organizations to consider options to, at a minimum, supplement their data acquisition strategies.
Surveying is a possibility; it’s a flexible model that can be used to capture a range of data, including demographics and attitudinal data. However, it’s often difficult to survey more than a small percentage of consumers due to its cost. Preference Centers are another option. However, typically they are used by only a small number of consumers.
Gamification, which is the application of game-design, behavioral economics and motivational psychology in ‘non-game’ contexts, is new concept in the data acquisition arena. 3radical is the company leading the way in the field, providing a way to collect data by engaging consumers through a clear value exchange. Through their technology, the consumer not only consents but volunteers data in return for better experiences and monetizable incentives. This is referred to as Earned Data (versus First, Second or Third-Party). It’s transparent and gives the consumer the ability to only provide information when they feel what they are receiving in return is worthwhile.
One of the many industries that is embracing gamification is casual dining. Initial data is obtained through branded-games, where customers play to win vouchers redeemable in-restaurant. The learnings are used to not only better understand and improve the customer experience within the game but also establishes a relationship between customer and brand. For example, a question such as “If you tell us your dietary requirements, we’ll give you three shots at winning prizes tailored to you,” is presented. Once such a give and take relationships is established, it becomes easier to ask for more detailed information, such as, “Would you like to be notified when other vegan options are added to the menu?”, “How was your experience?” or “What type of menu items would you like more of?”
The transparent and transactional approach used to gather data offers unique context to the brand. Who hasn’t been followed around online by variations of products they have no interest in buying because of their searches? Earned information, on the other hand, is shared directly and contextualized by the consumer rather than assumed or inferred.
Read full ‘Controlling Your Own Data Destiny’ paper: 3radical.com/controlling-your-own-data-destiny/
About the Author
Steve Quast holds a degree in maths and economics, and has spent over 20 years using data for analysis and predictive analytics to help marketers better understand customers and to improve the performance of their marketing campaigns. More background on him can be found on LinkedIn.
Steve Quast on LinkedIn