Consent - A Chance to Segment or Lament

GDPR | | 12th May 2017

By Scott Logie, MD, Insight at REaD Group

That most contentious of acronyms – GDPR - draws ever closer, and as each second ticks by the clamouring voice of the media continues to cause a frenzy around the repercussions of this new regulation for the marketing industry. As the finer details of GDPR’s implementation are not yet fully known it has left a lot of people wondering how it will affect brand’s ability to communicate and ultimately understand their customers.

The crucial aspect that has many marketers running for the hills are the changes being instigated concerning ‘consent’; essentially the permission given by an individual to allow the processing and use of their personal data. For starters, you can kiss goodbye to the pre-ticked box. Instead, businesses will be required to obtain unambiguous consent from consumers with active opt-in protocols, and must bare each tiny detail of how exactly they intend to use said data. Consent requests can no longer be sneakily hidden away in terms and conditions like a needle in a haystack or indeed be a precondition of signing up to a service. Separate consent must be obtained for EACH separate channel through which a brand wishes to communicate, as opposed to having a blanket opt-in.

All things considered, surely putting consumers at the heart of marketing and promoting more transparency and trust in the industry is a good thing? Nevertheless, these new stringent rules could ultimately mean that marketers find it difficult to target new customers and struggle to profile customer data. The key question is: as consumers become more and more sceptical about parting with their personal data, how can marketers win them over and ensure they are maintaining relationships with them once GDPR comes into full force in 2018?

The big, well-trusted brands such as Amazon, John Lewis and Marks and Spencer will be sleeping soundly in their beds in the knowledge that they should continue to have little difficulty with this conundrum. It is the less established, less trusted or less appealing companies that shall be biting furiously at their fingernails.

Companies that offer insurance or utilities will inevitably find themselves at more of an impasse when it comes to securing consent, as consumers perceive these services as a purchase made from necessity and not for enjoyment or pleasure. The reality is that while consumers are happy to provide their personal data to their favourite retailer with the promise of receiving personalised and rewarding customer service, industries such as insurance just don’t provide the same sex appeal.

Fear not! Marketers from all industries and sectors should refrain from DEFCON 1 just yet. Consider this to be a fantastic opportunity to get a head start and organise highly targeted marketing campaigns to source consent from consumers in the run up to GDPR.  In order to achieve this, customer databases would need to be profiled and different consumer segments identified. Each of these target audiences will already have different relationships with your brand, underpinned by their individual lifestyle factors, attitudes, purchasing behaviour and communication preferences. By segmenting audiences and analysing these different relationships, marketers can build a detailed picture of their customers and best understand how to persuade them of the benefits of providing their data in the most relevant fashion.

Truth be told, won’t this ultimately provide brands with a more valuable customer base and allow brands to hone their marketing approach? Evidently, some consumers will still refuse permission to their personal data, but on the bright side those that do would probably be averse to ongoing communications anyway. Why invest in consumers that are not willing to engage with your brand? Time and effort are far better spent on those that have actively requested contact. Furthermore, these consumers will appreciate the open, transparent foundation on which you have initiated this relationship and shall anticipate the same standard in future.

Of course, it goes without saying that it is vital for brands to continue to secure consumer data from May 2018, and undoubtedly (and unavoidably) there will be consumers that choose to opt-out of providing consent. However, this new focus on a transparent approach to data collection will, in due course, result in more reliable customer data and more profitable customer relationships. This new chapter of consumer consent should not be cause for concern; if tackled head on and in an effective manner, the results for marketers could be extremely lucrative and rewarding.

Talk to us today about how to effectively segment your customer data!