Consent-driven marketing: Use first-party data to capture hearts and minds

First-party data gathered with the permission and consent of the consumer provides marketers with accurate and insightful information

The increasing cadence of privacy regulation and efforts from within big tech to convince consumers that they can be trusted with their data have a common theme for a number of years.

Big tech, social media giants, and consumer brands alike have been criticised for opaque data practices, but a recent shift in consumer sentiment and consciousness towards privacy and transparency issues has brought the issue into the spotlight.

A recent study commissioned by Acquia found that 63% of consumers don't trust social media platforms with the privacy of their personal data, with nearly half (48%) of those stating that this is due to recent public scandals involving big tech companies and privacy issues.

Since GDPR came into effect in May 2018, the big tech companies such as Amazon, Google and Meta have all been issued huge fines as a result of their data usage. Amazon was fined €746 million for tracking users without consent and not providing opt-outs. Google was forced to pay $50 million for a lack of transparency and a lack of valid consent regarding advertising personalisation. Meta was fined €225 million for its unclear privacy policy and lack of transparency, and a further €60 million for overuse of cookies.

Privacy momentum

The historical misuse of data has led to several major legislative efforts, such as the European Union's Digital Markets Unit (DMU) and Digital Services Act (DSA), the UK's Data Protection Bill, and the US's Data Privacy and Protection Act. These have all been introduced over the past 12 months with a view to regulating the use of data by tech and returning control to consumers. In the industry, Meta's app-tracking transparency (ATT), and Google's Federated Learning of Cohorts (FLoC) and later Topics API, were amongst the most widely publicised changes in policy.

These new regulatory and corporate developments are widely recognised as creating better safeguards for consumers and for making big tech companies more accountable, but there is still a critical need for tighter consumer privacy regulations.

Although it is the world's largest brands that are under the most scrutiny, there are lessons to be learned more widely across the marketing industry. Consumers now expect data privacy and security to meet a certain standard. This savviness means that brands can no longer rely on third-party data. Overuse of this data, which refers to any information collected by an organisation that does not have a direct relationship with that person, has led to an erosion of consumer trust.

Snatching victory from the jaws of defeat

Marketers should see the growing awareness of privacy issues as an opportunity, rather than a threat. Acquia's research also revealed that better security (46%), increased privacy safeguards (41%), and greater transparency around data usage (34%) were the most important factors in changing consumer perceptions of brands. By implementing data strategies based on first-party data and consent, brands can capitalise on consumer sentiment and begin rebuilding trust.

It is imperative that marketers put the necessary tools and strategies in place to enable them to capture and leverage first-party data to create the kind of personalised digital experiences that are becoming so intrinsically linked to business success and growth in today's digital economy.

Leveraging first-party data

At the heart of first-party data strategies is a clear understanding of the consumer. This enables brands to deliver personalised and trustworthy digital experiences.

First-party data, which is gathered with the permission and consent of the consumer, provides marketers with accurate and insightful information, which can be leveraged to create bespoke engagements that will build a bond between the customer and the brand.

Third-party data, on the other hand, which typically comes in the form of aggregated information, such as names, contact details and social media accounts, does not reflect the true nature of the customer. In contrast to first-party data strategies, using this data to interact with consumers can create a disconnect with the brand and lead to a sense of frustration and feeling undervalued on the part of the consumer.

The key is to give consumers control over the kind of information that they share. However, it is equally important that this data is properly managed to extract the full potential for personalisation. Using a customer data platform, which standardises and enhances information to provide a clearly defined purchasing profile for each potential customer, can be highly effective. Brands can also enhance the intelligence that they gain from first-party data by gathering ‘zero-party' data, which can be obtained through surveys, quizzes, and other interactive content, where customers willingly indicate additional preferences and opinions.

The privacy regulations that have been put forward by legislators over the past few years are important for safeguarding consumers, but there is still a lot to be done before brands can truly begin to regain the trust of their customers. Leaving third-party data in the past, and creating opportunities to generate first-party data that can be used to create bespoke, personalised and trustworthy digital experiences is the next big step.

The brands that are able to do this, and those which can store, manage, analyse and act on the insights, will be the ones that will be able to capture the hearts and minds of their users through consent-driven marketing.

Tom Bianchi is EMEA CMO at Acquia