home Digital, Insights and Data How a CDP can help a business improve data privacy

How a CDP can help a business improve data privacy

In an era of rampant data breaches and privacy scandals, it’s little wonder that consumers are growing increasingly wary of the way their personal information is being collected and used.

However, thankfully, there is a way for companies to better protect their customers’ privacy while still providing them with personalised experiences. Enter Customer Data Platforms (CDPs).

A CDP is a platform that allows a business to collect and unify data from various sources, such as email campaigns, website analytics, and social media. The goal of a CDP is to provide a complete view of each customer, which can be used to create more personalised marketing and service experiences.

Beyond that, a CDP can also help improve personal privacy in a number of ways. Firstly, a CDP can help a business avoid collecting unnecessary data. This is important as one of the biggest issues with data collection today is that companies often gather more information than they actually need.

This trend not only puts consumers at risk of having their data stolen or misused, but it can also lead to a cluttered and confusing customer experience. By using a CDP, companies can more easily identify which data is essential and which can be discarded, resulting in a leaner, more focused data collection process.

Improved understanding of privacy policies

CDPs can also help companies to provide more transparent and accessible privacy policies. Many consumers are understandably confused by the terms and conditions that companies use to describe how they collect and use personal data.

By using a CDP, a business can create clear and concise privacy policies which can be presented to customers in an accessible format. This can help build trust and reduce anxiety around data collection.

CDPs can also help companies protect customer data more effectively. By centralising data collection and storage, a CDP can provide more robust security measures than a piecemeal approach.

This is particularly important in light of the increasing sophistication of cyberattacks and data breaches. With a CDP, companies can better monitor and control who has access to customer data and more easily identify and respond to security threats.

Regulatory compliance

Another advantage of using a CDP is that it can help a business to comply with privacy regulations more easily. In recent years, governments around the world have introduced a range of regulations designed to protect consumer privacy.

These regulations, such as the European Union’s General Data Protection Regulation (GDPR), can be complex and difficult to navigate. A CDP can help companies more easily track and manage compliance with these regulations, reducing the risk of costly fines and legal action.

Less intrusive techniques

In addition, a CDP can help a business create more meaningful and valuable customer experiences. By providing a complete view of the customer, a CDP can help companies tailor their marketing and customer service efforts to each individual’s unique preferences and needs.

This not only improves the customer experience, but it also reduces the need for companies to rely on intrusive data collection techniques, such as tracking using third party cookies.

In addition, many leading CDPs now include a centralised “Permissions Management” model that allows companies and individuals to easily manage what channels and types of communications each customer receives. Given the myriad of systems that store permissions across a business, centralising this content can significantly strengthen privacy and customer data management across the organisation. 

Naturally, there are some sceptics who argue that CDPs may actually be used to create even more intrusive and targeted marketing campaigns. Others worry that CDPs could be used to discriminate against certain groups of customers based on their personal information.

To address these concerns, it’s important for companies to use CDPs responsibly and ethically. This means being transparent about what data is being collected and how it is being used, as well as taking steps to ensure that the data is secure and protected.

It also means being mindful of the potential biases that can be introduced by relying too heavily on personal information when making marketing and customer service decisions.

Although the use of customer data can be a source of anxiety and concern for many consumers, CDPs offer a way for companies to improve personal privacy while still providing personalised experiences. Consider how a CDP could be put to work within your organisation.

Stephen Schwalger

Stephen Schwalger is Business Development Director at Customer Data Platform company, n3 Hub.  He has more than 25 years’ experience in the digital and professional consulting space during which time he has worked with companies to help them build and grow their international operations through effective digital transformations.  He was the inaugural CEO and founding board member of AIMIA and was instrumental in building the early export activities of the Australian multimedia Industry.