Consent Marketing also known as "Consent Marketing," flows from the new AVG measures. Because nuring it is impossible to place cookies without consent, personalized online campaigns seem to be a thing of the past. The majority of consumers no longer accept cookies. But there is light at the end of the tunnel, provided you manage to gain consumer trust. As it turns out, consumers are not so negative towards personalized communication at all.
Why are cookies not accepted?
As we wrote about in our previous blog on E-Privacy, 60% of consumers believe that their personal information may be out on the street due to a data breach. And 54% don't think organizations have their best interests at heart. As a result, people are less likely to accept marketing cookies. To continue to run personalized campaigns, consent marketing, obtaining consent, becomes more important than ever. And this is not impossible.
Consumer wants personalized communication
Research shows that consumers are indeed open to personalized communications. Consumers are skeptical about organizations using their personal data. But more than half of consumers do expect commercial offers they receive to be tailored to them. Nearly 85% of respondents to Salesforce's Trends in Customer Trust survey are more likely to buy from an organization if they are treated as a person rather than a number. It also found that 80% of millennials and teens expect mobile ads to be based on their location, interests and behavior.[1]
Consumers gather a lot of information about online privacy. However, this need not have a negative effect on their attitude toward personalized communication. Joanna Strychaz of the UvA showed that the more knowledge people have about online data collection practices, the more concerned they are about their privacy. However, if they also have knowledge about regulations, their concerns are less. This is because then they feel they can do something about it, have a choice. In addition, it appears that the more experience consumers have with personalized communication, the less negative they are. This presents opportunities for businesses.
Consent marketing = trust
To gain consent, it is important to make consumers feel that they have control over their personal information. In this case, their browsing habits on your Web site. Win the consumer's trust by showing them the benefit of accepting cookies. When the consumer sees the benefit (personalized, relevant ads) they are more likely to accept cookies.
Earning this trust requires transparency. 91% of consumers say they are more likely to trust organizations if they are transparent about how their personal data is used. Here it is important that as a company you show you take privacy seriously. You do this by being open about the collection and use of personal information. For example, by letting the customer decide which information can be used.
Scientific research by Sophie Boerman, Sanne Kruikemeier & Frederik Zuiderveen Borgesius shows two things:
One is that transparency about the collection and use of personal information increases trust in the advertiser.
Two is that it reduces negative feelings. This in turn leads to more clicks on the ad.
You can set up consumer consent and control with a consent marketing tool. This captures and processes data in real time. So that consent is obtained according to the AVG regulations. You can then segment this data for personalized campaigns.
Beware of personalization
The research by Boerman and colleagues also shows, incidentally, that you do have to be careful about what kind of information you use in personalized ads. Ads based on consumer interests or website behavior tend to lead to more clicks. But when more privacy-sensitive information such as age, gender and current location is used, it can trigger feelings of privacy violation resulting in fewer clicks and aversion.
In addition, it appears that an ad tailored to online behavior primarily leads to more purchases when consumers already have a clear idea of what they want to buy and thus seek detailed information.
Want to know what consent marketing can do for your organization? Then get in touch with us.
[1] The Rise of Mobile Prodigies: Millennials, Gen Z, and the Future of Mobile Marketing" conducted in partnership with Wildness, September 2016