We sat down with Incubeta’s South Africa Director: Growth and Partnerships, Niamh NicLiam and Business Unit Director, Chelsea Owens to share their insights and give you a preview of what they will be discussing in their fireside chat at the upcoming ECOMAfrica conference on the 19th of April. 

Let’s start by defining what we mean when we talk about personalization & privacy in the world of digital. Simply put, Niamh defines this as “Crafting bespoke experiences for consumers while respecting their first party data and privacy” – a crucial factor for brands and marketers to get right, else it could negatively affect consumer advocacy and retention. In fact 49% of individuals would switch from their preferred brand to their second choice brand for a more positive privacy experience, as we see a move towards a more savvy and educated consumer with increasing expectations from the brands they choose to support. Chelsea emphasizes that the onus sits with brands and marketers to enhance their transparency regarding their methods of collecting and utilizing consumer data in order to maintain their trust. As we move towards a cookieless and privacy-oriented era, it’s crucial to go beyond the basics or minimum legal requirements, and rather exceed consumer privacy expectations. 

More and more South Africans are relying on the internet for their daily needs, But with so much personal information at stake, it’s no wonder that people are concerned about their data privacy. In fact, last year NordVPN reported over 48,000 South Africans had their online data stolen and sold on the dark web which just adds to the general distrust that we have in sharing our personal information online. Brands need to take this issue seriously and implement strong security measures to protect their customers’ information, adhering to the relevant legal acts such as POPIA. Simple policies such as limiting users’ access to certain information and making sure that the right people have the right level of access to personal information could make a world of a difference. 

But it’s not just about legal compliance – brands should also offer equitable value to their customers in exchange for their data, whether it’s through discounts, loyalty programs or downloadable information. If brands require their consumers to share their personal information there is an increasing expectation to get something of value in return. By providing value, being transparent and respectful about data usage, brands can build trust and loyalty with their customers.

Why is it important for brands to get this right?

There are three main reasons why it’s important for brands to nail privacy; to earn consumer trust, to build brand loyalty and customer retention, and to bypass competitors:

• Earn trust – If you want to win the hearts of the consumers, you need to earn their trust and be able to maintain it. Brands need to be more proactive than reactive when it comes to communication, transparency, data protection and privacy or they risk losing their consumers and falling behind their competitors if that trust is breached. 
• Brand loyalty and consumer retention – Business growth and performance is directly linked to how you treat your consumers. In order to retain brand loyalty, you need to maintain that rapport with your consumers by respecting their data and constantly finding ways to provide a relevant value exchange that keeps them coming back.  
• Competition – Don’t get stuck in your own bubble. Be cognisant of what your competitors are doing by staying ahead of the curve to give you that competitive advantage. The end goal is to create a seamless personalized experience for your consumers that will make them choose you over your competition. 

What can brands do to get ahead of their competition?

Implementing effective personalization strategies requires a combination of technology, creativity, and data governance.

• Tech solutions – Having the right tech solutions in place is key to truly delivering a personalized user journey. Making use of dynamic data-driven creative to strategically advertise to your target audience by serving relevant personalized creative ads can help you stand out from the competition and improve your overall performance. In order for this to be effective, you need to have the right data and ensure that your audience segmentation is done correctly to enhance your targeting. 
• Tailored content – Content is an effective way to connect with your audience and tell authentic stories that leave a lasting impression and develop a relationship with your consumers. However, if done incorrectly, could damage your brand image. The key is using what you know about your consumer or target audience to tailor and personalize your content.
• Data governance –  Have a solid data governance structure and policy in place that falls in line with company and legal guidelines to maintain the integrity, usage and security of your data. Appoint a data governance custodian to be accountable and responsible for protecting consumers information to ensure that your data remains accurate, trustworthy and secure. Prioritize data privacy before personalization.
• Data specialists – There is no point in investing in data collection if no one in the organization knows how to strategically make use of it. Data specialists are able to recognize the value of your data and identify strategic ways in which your data can be used effectively to drive growth and performance. 

What can brands do today to improve their personalization strategy while respecting consumers’ privacy?

The first step towards effective personalization is audience segmentation. By understanding your audience better, brands can tailor their messaging and communication strategies to be more effective. For example, they can use their newsletter list to identify high and low engagement audiences and adjust their targeting accordingly and effectively use this data to influence their paid media strategies. Audience segmentation is not a one-time project – it requires ongoing monitoring and improvement to remain effective. It is dynamic, constantly evolving and changing which means you need to consistently stay on top of it and review it. 

In today’s digital world it’s important to constantly evolve and remain agile to stay ahead of the curve. Learn from local examples like the Shoprite Checkers group who effectively use their 1st party data to strategically serve relevant deals to users based on their interests. Discovery Group is another great example of a brand that makes good use of audience data to cross and upsell their products across the Discovery product suite. They are able to use their data to recognize what other products within their suite would be ideal or relevant for you based on your profile and personal information. By studying successful case studies and taking a data-driven approach, brands can adapt and remain agile in today’s digital world, ultimately creating experiences that are both effective and privacy-conscious.

Want to hear more from Chelsea & Niamh? Join us at the upcoming ECOMAfrica event on 19th April at 11:45am for an in depth fireside chat focusing on the importance of balancing personalisation and privacy and how businesses can use data in a responsible manner to improve user experiences. Register here. Use code INCU30 for a 30% discount on your delegate tickets.