The privacy versus security debate has been never higher than before. The compromising of millions of data sets from Facebook and the Cambridge Analytica case have amplified this.
BCG Chairman Hans Paul Burkner is of the belief that the inevitable fallout is that going forward government regulations will intensify.
There are of course many questions that the fraternity of marketing is grappling with. Should data stay with you or exchange with the third party? Should customers get access to their own data? Should you allow them to delete their own data?
"Customers in India have more concerns about the way data is used than Europeans. GDPR has made it important to get consent in a less ambiguous way. This is only the beginning. You should not underestimate the rate of change," he says.
He adds that corporations have an added responsibility for privacy and security of their customers. "Finding the balance is the key. Very few expect to get prior consent in internal usage. But in third party sharing customers expect more prior consent and companies understand this more than customers," he stressed.
He adds that control and transparency are critical elements. Companies must be open with customers on what they collect and how they are using it.
"Irrelevant information will not get better offers to customers. Refine your system continuously as your responsibility goes way beyond yourself," he says.
Citing case studies he said that Starbucks is a very important example of using data. The campaign delivered three times better campaign results and ultimately an 8 percent increase in revenues.
On the negative side, a retailer accessed a lot of data on women who become pregnant. It got negative publicity and destroyed trust and the brand. Balancing privacy and security is important and brands should live up to the responsibility they have, he signs off.
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