The Data Dilemma: Earning Trust in a Privacy-First World

Personalization. It’s the buzzword of the online shopping world. Salesforce says, 56% of consumers are more likely to buy from a brand that personalizes their experiences. But what fuels this personalization engine? Data, of course. However, the way we collect and utilize data is undergoing a dramatic shift.

Consumers now understand the Latin phrase, caveat emptor (let the buyer beware). They understand the value of their data and increasingly demand control over its use. Gone are the days of blindly clicking “accept” on complex privacy policies. Consumers want to know exactly what information is being collected, how it’s used, and most importantly, how it benefits them.

Consent is key

First-party data is information collected directly from your customers, with their explicit consent. This includes data gathered through website visits, email sign-ups, app interactions, and purchase history. 

While a significant portion of consumers (71%) are happy to exchange first-party data for a more relevant shopping experience, this trend is even stronger among younger generations, with 77% of Gen Z and 81% of Millennials willing to make this trade.

Unlike third-party data, which can be unreliable and raise privacy concerns, first-party data offers a transparent and ethical approach to understanding your audience. Over 57% of consumers would actively avoid companies that sell their data to third parties. 

First-party data offers several advantages over traditional third-party sources:

– Transparency: You know exactly how the data was collected and with whom it’s being shared. 71% of customers say they’re more likely to trust a company with personal data if its use is clearly explained.

– Accuracy: The data comes directly from the source, minimizing the risk of inaccuracies or inconsistencies.

– Control: Customers have a clear understanding of what data is being collected and can easily opt out if they choose.

Once you gain access to first-party data, the challenge arises in harnessing this valuable first-party data to deliver personalization that meets customer expectations. 65% of customers expect companies to adapt to their changing needs and preferences, indicating a desire for dynamic personalization but 61% say most companies treat them as a number. 

Innovative solutions powered by AI can help you bridge the gap between what consumers want and what they experience, leveraging first-party data to offer hyper-targeted personalization. 

Ready to learn more? Drop a text on [email protected] to see how Xuno can help your business thrive in the era of privacy-first data collection.