The world of data is changing, and changing fast. In the past few years, data privacy has become one of the most talked about topics. In the last decade, as Big Data grew to completely reshape the world of businesses, the focus has now turned to how this data is collected and used.
With the explosive rise of social media and ensuing concerns over its influence, people have become increasingly concerned about data privacy. The EU was the first to announce major data privacy regulation policy with the GDPR, followed closely by the CCPA Act by the US.
Following this trend, Apple recently announced its App Tracking Transparency Framework (ATT) as part of the iOS14 update, which would require users to consent or opt-in to tracking. Google also has made changes to its policies, with the removal of third-party cookies on Google Chrome. These changes have required brands to re-evaluate marketing strategies and how they reach their audiences.
In addition to this, the unprecedented events of the last year with the COVID-19 pandemic has also resulted in changed consumer behavior. Traditional brick and mortar brands and retail outlets relying on visitors or foot traffic have been hit hard. Businesses now must deal with a changed world as well as a changing data-landscape.
What is the future for data intelligence and how can brands solve the consumer identity change while remaining privacy compliant?
In this eWEEK Data Points article, Gladys Kong, CEO of Near Americas, shares the following prediction trends for the future of data intelligence.
Data Point 1: Control over data will define market leaders.
Data will continue to be the key driver for growth and the organizations that effectively use data to inform business decisions will emerge as the leaders. Brands will have to invest in enriching their existing data and will choose the right partners that are privacy compliant. To ensure they understand their target audiences, brands will have to invest in data that combines both online and offline behavior. Investing in the right data and the right partners will pave the way for brands to increase market share and LTV.
Data Point 2: A unified and persistent identifier will be the way forward.
Solving the consumer identity challenge is a prerequisite for continued growth. The traditional architecture and identity stack of cookies and device IDs will not be sustainable any longer with the recent updates. Organizations will have to look at ways to adapt to the shift to a decentralized data system. An identifier is important for a single view of the customer which can be used to ensure the right targeting and messaging for effective marketing strategies and superior consumer experiences. Moreover, as companies face an increasingly complex landscape of privacy regulations, they will look to invest in data and partners that can help them overcome this challenge.
Data Point 3: There will be a shift in consumer behavior post-Covid.
Noticeable consumer patterns have emerged in the past few months. As restrictions lift, consumers will not go back to pre-covid behavior but adapt to a new normal. The success of an organization will depend on whether they are able to pivot to strategies that are unique to the different types of customers in the post-covid market – the risk takers, the balancers and the risk averse.
We see four trends in customer sentiment and behaviors globally. While there are differences by country and region, overall, these trends seem to be common for most.
- Despite pockets of reopening, net customer optimism has decreased, and most customers continue to expect a long-lasting impact from COVID-19. Most customers globally still expect COVID-19 to impact their routines for a long time to come.
- As incomes have declined, customers are choosing to spend only on essentials, with some exceptions in South Korea and China. Customers globally continue to see the impact of COVID-19 on their incomes, with those in countries like Thailand, Australia, India, and New Zealand all entering recession-like periods of reduced GDP growth.
- Customers are shifting to online and digital solutions as well as reduced-contact channels to get goods and services. Across all countries measured, customers are adopting and intensifying digital and reduced-contact ways of accessing products and services. As we look more granularly at Near data, this digital trend is magnified for Gen Z and millennials and for higher-income customers.
- Customers also want to see an ongoing emphasis on cleaning and safety. As customers determine where to shop in-store, they are prioritizing cleaning and sanitization and are looking for the usage of masks and barriers. Physical distancing – while important – is less critical in most regions.
Data Point 4: Privacy will come to be a competitive advantage.
About the Author
Gladys Kong is CEO of Near Americas