Better Audiences: How Self-Sovereign Data Ecosystems Help Marketers
In today's world, consumers are increasingly concerned about data privacy and security. This poses a challenge for marketers who want to deliver personalized experiences while respecting user privacy. This is where self-sovereign data ecosystems come in – a model of managing audiences in a privacy preserving way where individuals have full control over their personal data.
But how do self-sovereign data ecosystems benefit marketing? Let us count the ways.
1. Better targeting
According to an Accenture study, 91% of consumers are more likely to shop with brands that provide offers and recommendations relevant to them. Self-sovereign data ecosystems enable audience building by marketers**,** with data of behaviours and attributes verified in customer data wallets, so that personalized experiences can be tailored to the audience’s preferences and behaviors without identifying individuals. For example, audiences that are committed to living healthily can verify their behaviours and be targeted within the wallet privately. This can lead to increased engagement and conversions.
2. Enhanced trust and promoting choice
Trust is a crucial element in building long-lasting relationships with customers. A survey by Janrain found that 90% of consumers are more likely to trust companies that allow them to control their personal data. By giving users full control over their data, self-sovereign data ecosystems can help build trust between individuals and marketers. Trusting that they are not identified would help customers be more willing to exhibit audience behaviours that would give them greater rewards and benefits. This can lead to increased customer loyalty, advocacy, and lifetime value.
3. Increased personalization
Personalization can significantly impact customer satisfaction and loyalty. A study by Epsilon found that personalized emails have a 29% higher open rate than non-personalized ones. Self-sovereign data ecosystems can enable marketers and their partners to engage in audience buying so that messages, products, and services can be more personalised to the audience, improving their overall experience. This can build loyalty and advocacy.
4. Improved convenience to customers
Do you require customers to fill in forms for a website or to enter your businesses? Self-sovereign data wallets can be incorporated to your app or website to improve audience access to your product or service as they can authenticate themselves and breeze through your site every time by storing the relevant information in their data accounts.
5. Better accuracy and more complete data
Poor data quality can lead to ineffective marketing campaigns and wasted resources. With self-sovereign data ecosystems, customers become a stakeholder in the accuracy and completeness of their data, which can improve audiences quality that marketers rely on. This means that marketers, working together with complementary partners, can design highly rewarding engagements with customers.
6. Improved compliance
Compliance with data protection regulations such as GDPR, PDPA and CCPA is essential for marketers to avoid costly fines and protect their brand reputation. An IBM survey found that the average cost of a data breach in 2020 was $3.86 million. With self-sovereign data, marketers can ensure they are compliant with data protection regulations. By giving users control over their data, companies can minimize the cost of compliance and increase the speed of audience creation.
Overall, self-sovereign data ecosystems help marketers deliver more impactful and measurable marketing campaigns that are more effective and personalised; prioritising transparency, consent, and user control in building or buying audiences so that the matching audience behaviours would be choice-based and enduring. By doing so, they can build long-lasting relationships with their customers based on trust, relevance, and value.
To learn more about self-sovereign data ecosystems and how to get started on building, buying or creating audience behaviours, come talk to us at Dataswyft. For a case study for Self-Sovereign Data Ecosystem, visit SejutaKG
Resources
Better targeting: Accenture (2018). From Me to We: The Rise of the Purpose-Led Brand. Retrieved from https://www.accenture.com/_acnmedia/PDF-83/Accenture-From-Me-to-We.pdf
Enhanced trust: Janrain (2018). Consumer Attitudes Toward Data Privacy. Retrieved from https://www.janrain.com/resources/whitepapers/consumer-attitudes-toward-data-privacy
Increased personalization: Epsilon (2018). The Power of Me: The Impact of Personalization on Marketing Performance. Retrieved from https://www.epsilon.com/-/media/files/epsilon/emea/insights/reports/the-power-of-me.pdf
Improved compliance: IBM (2020). Cost of a Data Breach Report 2020. Retrieved from https://www.ibm.com/security/digital-assets/cost-data-breach-report/#/united-states