Data Privacy Day is on January 28. But isn't all hope lost when it comes to the P-word? Interestingly, Daniel Solove is one key expert who doesn't think so: His recent Year in Privacy roundup sounds a number of positive notes, largely having to do with regulatory pressure driven by public pressure. In the age of the customer, we really can see "water wear away stone" when ordinary people demand change.
My colleague Fatemeh Khatibloo recently published some must-read research on contextual privacy: a framework for negotiating the collection and use of personal data that ensures a fair value exchange for both the customer and the business. Don't miss the blog post where she lays out some takeaways:
Privacy isn't dead, it just needs redefining.
Privacy will be a market differentiator.
Privacy technology will disrupt the marketing ecosystem.
Yesterday, FTC Commissioner Julie Brill published an essay on AdAge.com that calls on data brokers to join -- or, rather, establish -- an initiative called "Reclaim Your Name." The goal of the program would be to provide a single portal where consumers could see what data the industry has collected about them, provide options to opt in and out, and to correct data that might be inaccurate.
While the commissioner's article is a bit heavy on the "big data" rhetoric, her point is well taken: We have entered an era where the volume of data that individuals make available about themselves -- often inadvertently -- is increasing daily. Unfortunately, guidelines for how marketers and the larger data industry collect and use personal data are in short supply. This conflict is one of the major challenges that our industry faces in the coming decade: How can brands excel in the age of the customer if they're constantly under scrutiny about their privacy and data practices?
Acxiom, one of the world's largest data brokers, recently launched its own version of the kind of portal Commissioner Brill calls for. AboutTheData.com lets individuals see a subset of the data Acxiom knows about them, provides correction and opt-out opportunities, and aims to provide consumers with education about the data industry as a whole.
Eighteen months ago, when I started down the path of what would become our body of Personal Identity Management (PIDM) research, there were only a few customer intelligence professionals who gave much credence to the picture we were painting. What a difference a year makes. Today, privacy, data governance, consumer empowerment, and understanding "the creepy factor" are core to the conversations I have with CI pros in both marketer and vendor organizations.
At the center of those conversations is often the question, "Who are the players in tomorrow's consumer data ecosystem?" We've just published a report, Making Sense of a Fractured Consumer Data Ecosystem, that reviews the strengths and weaknesses of four existing vendor categories plus three emergent business models. These include:
Consumer data giants: Companies, like Acxiom, Epsilon, Experian, and Infogroup, that have an opportunity to become consumer-friendly data managers but are at greatest regulatory risk
Reputation management providers: Companies, like Intelius and Reputation.com, that could help consumers manage data access but need to focus on their B2C business models to do so
Online services giants: Companies, like Google, MSN, and Yahoo, that already have access to highly personal data but serve too many masters
Yesterday, the White House released a long-awaited set of recommendations that are focused on helping individuals take greater control of how their data is collected and used for online marketing purposes. It includes what's being referred to as a "Consumer Privacy Bill of Rights."
The language is vague. The timeline to completion is long. The guidelines, for now, are "opt-in" for organizations. All true.
But folks? The glory days of scraping and selling and repurposing customer data are over. The Oval Office has spoken on the issue of privacy and personal data, and its bill of rights is crystal clear: Tell me what you’re collecting, how you’re using it, protect it well, give me a copy, and give me a chance to correct it, delete it, or opt out entirely.
Plenty’s been written already about Facebook’s IPO filing yesterday. I won’t rehash the many excellent analyses that you’ve surely already seen.
Instead, I want to take this blog post into thought-experiment territory. I want to think about a world in which Google and Facebook are primary competitors in a mano-a-mano battle—not just for our eyeballs, but for our data, too. For the right, as it were, to be our “digital identity.”
Over the holidays, my mother—67 year old tech-accepter, Kindle-owner, smartphone-avoider—called me into the office to show me her Facebook newsfeed. “How,” she asked, “do they know that I’m interested in Persian classical music and that I live in Los Angeles?” As I was explaining behavioral targeting and computational advertising, I glanced over at the computer, only to see her click through and order tickets from that Facebook ad.
So I asked, “Do you trust Facebook?” To which she replied, “Of course not!” as she entered her credit card number, home address, and email address for a very spendy concert ticket.
“Do you trust Google?” I asked. “More than Facebook, I suppose,” she answered. “But Facebook shows me stuff I like more often than Google does.”
That experience, plus a brainstorm with my colleagues on the Customer Intelligence team here at Forrester got me thinking: What if, as a consumer, you had to choose between Facebook and Google? Which service is more valuable to you? Which will BE more valuable in the future? I decided to compare the competitors (and let there be no mistake—Facebook’s S-1 filing very clearly identifies Google as Enemy No. 1) across the dimensions of Forrester’s customer engagement cycle:
This week I did a webcast, Planning for Failure, which makes the assumption that if you haven't been breached, it is inevitable, and you must be able to quickly detect and respond to incidents. An effective response can be the difference between your organization's recovery and future success or irreparable damage. While I was working on the slides for the webcast, I started to reflect back on the 2011 security breaches that personally impacted me. Three breaches immediately came to mind:
Most marketers and customer intelligence (CI) pros tend to lump together most types of customer data. Sure, things like passwords and social security numbers are considered more "sensitive," but for the most part, the systems that protect all the data -- and the privacy policies that communicate their capture and governance -- are largely the same.
Individuals see different types of data differently -- they're most worried about what we consider individual identity data, and far less concerned about the capture and use of their behavioral data.
Most consumers are willing to share their data in exchange for value. But, what they consider "valuable" is very age-dependent -- in other words, the same consumer isn't equally motivated by discounts and cash rewards.