Smart Data is the Key to Building Trust with Consumers
Data is the currency of today’s increasingly digital economy — the coin of the digital realm. Data reveals consumers’ needs and desires and makes it easier for brands to more quickly respond with the appropriate message, offer, or product. When data is currency, it seems to follow that firms should collect as much of it as possible. Indeed, “maximum data” has become the accepted best practice. But in practice, the maximum data approach has been crippled by a crisis of trust. Overwhelmed by massive amounts of data in complex and disconnected systems or repositories, marketers cannot be confident they are getting appropriate and reliable insights. Even more problematic, consumers are increasingly suspicious and resentful about wide-scale data collection and use, especially when it provides them no obvious benefit in exchange. When marketers don’t trust data to help them build better relationships with consumers, and consumers don’t trust brands to do the right thing with the data they collect, then a prized corporate asset has turned into a liability.
The solution to the crisis of trust is not more (or less) data, but smarter data.
In this report, Tim Walters proposes two actions that marketers can take today to move to smarter data. First, create a unified data layer, in which diverse data sources are integrated and normalized. Second, use machine learning and artificial intelligence (AI) to produce better, faster, and more actionable insights and recommendations that allow marketers to genuinely help individual consumers – and become worthy of their trust trust and loyalty.