The future of trust must be built on data transparency

In parallel with the various privacy regulations, technology companies that build browsers and mobile phones are starting to create new barriers that make it harder to track consumer behavior online. This runs the gamut from restrictions on the use of tracking cookies to new controls and permissioning schemes regarding whether and how data can be collected from apps.

For example, in spring 2021, developers will have to adhere to Apple’s App Tracking Transparency (ATT) policy, which requires third-party apps to ask Apple device users for their permission to track them. Apple, Google and Firefox are also working on privacy-focused updates to the most popular browsers. These include Safari’s Intelligent Tracking Protection, Firefox’s Enhanced Tracking Protection, and Google Chrome’s announcement to phase out third-party cookies The so-called “post-cookie” future has roiled the marketing and advertising industry, creating uncertainty about what happens next, said Tido Carriero, chief product development officer at customer data platform (CDP) vendor Twilio-Segment.

“One thing we know for certain is that first-party data — data collected directly from a company’s audience of customers, site visitors and social media followers — is really the only future-proof option,” he said.

David M. Raab, president of Raab Associates Inc. and founder of the CDP Institute, believes big tech’s anti-tracking efforts may shift advertising toward walled gardens that have rich first-party data stores, such as Google, Facebook and Amazon. He also sees larger companies like Walmart and Kohl’s building their own smaller universes or “walled flowerpots,” as he called them, which could reintroduce some competition.

The larger question for the advertising industry, he said, is what constitutes trust in an era when consumers increasingly care about data privacy. Raab argued that consumer trust in a brand is tied in large part to the brand’s ability to deliver a seamless customer experience, which in the digital age requires a technical prowess. Good customer service comes down to operational capabilities like processing orders with one click, making returns very easy and having customer records available to call center agents.

“It’s not about personalized advertising, even though marketers love to use that as a reason why customers should give them data,” Raab noted.

The challenge brands face is that customers are reluctant to share data but expect services based on the data they didn’t share. This lack of data makes some analytics harder, but Raab believes there’s still plenty of data available — especially about customer transactions, which drives the most powerful analytics and predictions of customer interests and behaviors.

In Raab’s view, technologies that allow surreptitious tracking and skirt privacy rules will get shut down “There’s plenty to be done without violating privacy, and companies can get permission to collect plenty of data if they ask properly,” Raab said. “A lot of that comes down to building trust with consumers that their data will be held securely and used in the customer’s interest.”

Data transparency and employee trust

CIOs and other executives also need to think about how to build trust in the adoption of new work-tracking technology. On the one hand, AI can help to spot patterns and opportunities for improvement that humans may miss. But the flip side is it can lead to fears that Big Brother is watching out, which may discourage employees from using the tools or encourage them to find creative ways to sabotage them.

“Businesses will need to carefully explain the intentions in terms of how it protects employees and customers, rather than simply addressing an organization’s needs,” said Andrew Pery, AI ethics evangelist at ABBYY, a digital intelligence tools provider.

For example, new task-tracking tools can use AI to find ways for employees to work more efficiently. Pery observed that companies often see better adoption when they make present these technologies in a way that inspires employees to improve their productivity, rather than as an added burden or a threat to their jobs.