Christi Olson, Head of Brand Evangelism of Search @ Microsoft
[00:14:07] Because we all know what happens. Is that sometimes there’s going to be a data breach, so once you make it past privacy, we get into the area of data.
[00:14:18] We’ve collected all this data. The question is not if a breach will happen and the question is most likely when and if it happens. Are you ready for it to happen? Because consumer perception is huge and you don’t want to lose the trust you’ve worked so hard to create with your customers. When we talk to our consumers about how did they have a data breach, yes or no, and how they learned about it. Fifty six percent of people learned about a breach from the news of the media. That means they heard about from a third party source, not from the company that had the breach. Now, when you think about trust, this is huge. I wouldn’t trust a company if they wouldn’t tell me in my data and information had been breached or stolen or the whatnot. And so you want to think about do you have a plan in place to keep consumer trust if a breach happens? Because I have to say this month, so September 20, 20, I’ve received three pieces of mail from different companies. I do business with letting me know that they had a data breach in the past six months, what information was potentially taken. And my next steps as to what I can do to make sure my data is protected. I love the fact I received those communications, because when you think about how data breaches impact consumer perceptions, a lot of times they can be pretty negative. One of the breaches that was involved in late last year actually went into court and went into remediation. And I thought is pretty interesting because this is a medical company that I received a settlement as part of a medical company where my personal medical information had been shared and had been breached out there as part of the settlement. They determine the value of my data. So my personal medical history, according to the to this case, was twelve dollars and ninety one since. How does that impact my perception? It doesn’t leave me thinking pretty highly of that company. And it also leads me to believe is that all my data is worth in my mind, my medical history, my medical data is worth a lot more. So when we think about the customer perception, is that perception going to change my view on the company when we ask consumers this? The answer was yes, in most cases. Eighty five percent of people said their relationship with the company changed. They stopped giving data. They weren’t giving us much data. They’re being more careful with what data they get. And sixty five percent of people who had been part of a breach said they would stop doing business with that company altogether. It’s crazy you don’t want that to happen to you, so I’m going to share some pretty quick tips here, go back down on the deck. I’m not going to walk through it, but think about what you need to do before the breach to plan. How do you get ready? How do you know that if you find out internally that your data has been breached, what do you do? Who is contacted internally? What who what regulations do you have to follow for who you notify to let them know a breach happens? Have you educated your employees as to what they say? Have you educated your customers? Say if we’ve had a breach, this is what will happen here is the process. Because when you do these things and you set up a process process in advance, it allows you as the brand, you as the company to control the message and not the media. And so you want to document that plan of action so that if a breach happens. You know what to do next, you can acknowledge that the breach happened, you can admit that it was a mistake, be transparent about mediation, what’s going to happen, performing reconnaissance to really understand why and how, and then communicate what you learned and what you will do moving forward in order to maintain and continue building that consumer trust. Because if you understand what your consumers value and you can maintain that trust, you can keep your business going and you can keep that loyalty that we so long to have within our customer basis. So, again, as we think about trust, how much is your data worth? Think about customer value. If this number were to get out. Would that change their perception? How would you understand the worth and the value of customer data? Because in reality, the real value of data is our ability to create a meaningful connection with our customers. And that meaningful connection allows us to do better targeting, better advertising. And really, I guess it’s it’s not that the connection creates targeted advertising, allows us to understand the customer so that we can reach them where they’re at in that journey. Because when we think about data and privacy, what comes down to it is the fact that the value lies in the exchange. We talk about value exchange. This is a marketing term. This is not a trend consumers really understand. But this idea of what one party gives up, another party receives. So they give us data. What do we give them back in exchange, is the value worth twelve dollars and ninety one cent? I would say my medical history is worth more, but I could be wrong. But we as consumers, do you think you’re getting good value from sharing your personal data with companies and brands? And we ask this over multiple industries, everything from grocery stores to automotive dealerships to media companies, etc.. The answer? Eighty five percent said, no, they don’t. Only 15 15 percent said they felt like they’re getting good value from sharing data with consumers. Why? Two thirds of the consumers did not understand how their data gets used. What are you doing with that? I shared with you my information, but then I go to log in to your website and you’re not give me a personalized experience. You’re not showing me the products I purchased in the past. You think about this like they didn’t understand how data gets used. And what happens is this breeds an imbalance and what we call the value exchange, which can lead to distrust. Distrust leads to fickleness. Fickleness leads to a lack of loyalty where you can potentially lose those customers. So as we think about what happens, you want to create loyalty and you have to figure out the user experience, whether they share the data or not, because there are some restrictions with different protocols that say if they opt out of sharing that information, you still have to give them an experience. It doesn’t have to be personalized experience. You have to give them an experience. And we talk to our consumers. Four out of five of the consumers believed opting out of data should not change that digital experience. Now, when we saw about this is we heard terms like my dad is not a bargaining chip or it’s not fair that I wouldn’t get the same experience. But we also understood there’s a group of consumers that really understood how data gets used, the more tech savvy where they say, you know, like, hey, it might not be closely tailored to me, like it might not include location, data, things near me, et cetera. But it is my choice to give data and I still want a high quality experience and a good service. So this is the gap. If you take nothing else away from the presentation today other than the fact that data is important, changes are coming. Think about this. The gap exists between the experiences we are creating for our customers based on the data they’re sharing with us. How do we bridge that gap? How do we come together to make sure the experiences we give them are amazing and what they expect based on the data, we’re doing it because privacy is not a policy, compliance or legal issue. Personalization is not a privacy data trust issue. They’re all consumer experience issues because the consumer needs to be the heart of what we’re doing. So if we think about this, there’s purpose behind what we do from personalization. It matters. And we ask consumers what type of personalization are you willing to give data to experience? They weren’t quite certain. And I think they’re not quite certain because we haven’t, as marketers, done a great job of being consistent with the experiences we provide. When we asked this question, we gave them over 20 choices of things they could have and they could write something like what would you be willing to share? Basic information, name, email address and what we saw roughly 60 percent, 57 percent of people said personalized personalized rewards or discounts based on things like before personalized pricing or money back. I love this. That personalization and free showed up the most free products or samples, free access to a service, free news content, etc, free or upgraded shipping, access to content. So we look at this, none of them really scored super high across twenty four thousand people, roughly 60 percent said this would be worthwhile. But the top 10 even we look at what number 10 was expedited purchasing and checkout options. Roughly thirty nine percent of people said, I share my data for that. So it’s not that much. So you want to understand how does value drive value understand what your customers value? How do you personalize the experience based off the data they’ve given so that you can live up to that consumer experience that you give them? How do you communicate what they receive in exchange for their data? Give me this and we can do these things so they’re more likely and more willing to share because when it comes down to it, we all want to feel like we’re being engaged with and that we’re doing is purposeful. I loved that early on during 19, we had some good news that came out and he had this idea of a lesson and purpose where he decided to essentially partner with AT&T and give free, free phone service to frontline workers during this. It was an idea that wasn’t based on a marketing campaign or a brand campaign. It was an idea of let’s do something good on behalf of our customers, because we understand that right now is one of the most challenging things they’ve ever faced. And they’re up front in the middle of covid experiencing all these crisis’s of health concerns and then going home and trying to take it all in. Because purpose really does come from understanding and we think about as brands, we want to be purposeful, we want to be engaged, we want to be brought into our customers lives. So as we think about this, trust is at the heart of it. Data really goes all the way around. We want to be genuine, authentic. We want to have personalization. We want to make sure that we are responsible with the data, that we have access to, that we’re providing value to our customers and that we’re inclusive with what we do, because that overall, as we touched upon trust, privacy, preparing for breach, personalization and purpose helps get to where we want to go. The future requires that you as marketers recognize and priorities that prioritize that consumers want a better experience. That experience will lead to more meaningful connection, and that connection gives us permission to be part of their lives. And that is how we do marketing with purpose. So I want to say thank you. You can access the white paper again at MSG in brands we trust. Feel free to reach out to me on Twitter. My handle is actressy, Joelson, and I hope you have a lovely day.
Sales & Marketing Stage
Ascent Conference 2020