Privacy vs. Personalization — DTC brands struggle to find niche audiences in new privacy landscape
Almost 57 percent of US customers are prepared to forego personalization in order to safeguard their privacy.
When it comes to data acquisition, retailers walk a tight line. According to a November survey conducted by The Conference Board in collaboration with Nielsen, almost 57 percent of US customers are prepared to forego personalization in order to safeguard their privacy. According to a November research from Generali Global Assistance, data breaches are also a concern for buyers, with almost two-thirds of consumers stating they were concerned about them past holiday season.
These investigations’ conclusions may jeopardize the intrinsic value DTC brands have had since their inception: providing highly personalized shopping experiences to their customers.
“If anything, people are becoming more aware of privacy rather than less,” Song of DojoMojo said. “We just don’t trust providing our customer data or private info out there because of Big Brother concerns and a lot of the political context.”
Government rules such as the EU General Data Protection Regulation, the California Consumer Privacy Act, and California’s Prop 24 threaten to complicate brands’ data gathering relationships even more. And, while some customers may prefer ads that are more relevant to them, the great majority of users, according to Song, choose privacy and security.
“I believe it’s a fascinating time, because there’s a gold rush going on, and everyone is trying to get to the front of the line in the hopes of making it and breaking through. I believe the truth is that the businesses that will succeed are already at a particular size “he stated “Unfortunately, the bulk of people who are entering this gold rush at this moment will not discover gold.”