Data collection has become a familiar part of the online shopping experience, but there is a lot still unknown about what happens on the back end. While shoppers have expressed a willingness to share data in exchange for a more personalized experience, retailers who offer transparency are more likely to earn consumer trust. Dynamic Yield is making it easier for retailers to be compliant and secure with their customers’ data, with its new launch.
The “No Consent, No Cookies” solution from experience optimization platform Dynamic Yield is a new tool that lets brands ensure that no consumer’s data is collected without their permission. Retailers that use the tool will automatically block data collection from any user who hasn’t actively opted-into cookie tracking, to ensure all records are consensually obtained.
“Consumers are tired of data breaches from companies that they’ve placed their trust in to handle their information responsibly,” said Yaniv Navot, VP of global marketing at Dynamic Yield. “So while research shows that many of us are willing to disclose our interests and preferences in return for a more personalized experience, there’s a heightened sense of concern about how our data is being used and protected, whether or not to opt-in, and for what purposes or benefits.”
Data is an increasingly useful resource for retail, as it allows companies to analyze their performance and the behavior of their customers. From this analysis, companies can adapt their business strategies to better serve their audience, ranging from marketing to inventory planning.
Most consumers are in favor of these more tailored experiences and are therefore willing to share their information with the brands. But a lack of transparency about what this data is used for, in addition to broader concerns about privacy, has led some brands to question what is happening behind the scenes at their favorite businesses. In addition to breaking new laws like the EU’s GDPR guidelines, retailers need to consider the impact on their brand as a whole.
“Beyond the monetary implications, the reputational damages associated with non-compliance can severely damage a company’s position within the market and its ability to nurture relationships with customers, resulting in even greater revenue losses,” said Navot.
By contrast, establishing clear and transparent data-gathering practices can actively endear a brand to its customers. In addition to implementing an opt-in data system, as opposed to an opt-out system, Navot recommends that businesses assess all their partners and verify that they also practice secure and honest data collection. In some cases, it may be necessary to bring responsibilities in-house to ensure compliance.
As a result of these stricter practices, there may be an initial loss in the volume of data gathered. However, for the shoppers who opted-out, this is not necessarily a permanent stance. Brands that can demonstrate trustworthy and transparent behavior may be able to convince users to share their information over time, in order to receive a superior experience. And Navot believes that there will be no significant impediment to retail strategy.
“Brands will still be able to optimize as they’ve become familiar with for those who have actively opted-in, tailoring experiences based on past purchase behavior, browser activity, product affinities, and more for this segment of users,” said Navot. “In the end, the only major impact on data collection is that it’s [now] done with integrity, ensuring that only information gained with the appropriate permission makes its way into experience optimization efforts.”