James Manderson, SVP of Success at Braze Consider the opportunity for AI and machine learning technologies to enable rapid, highly personalized engagement using minimal data.
Today, the click of a mouse can reveal much more information than we realize, making data privacy issues central for consumers and brands alike.
Phenomenal 71% of companies surveyed collect personal data of EU residents.Additionally, the rise of AI and machine learning has raised even greater privacy concerns, and this increased importance has led to growing fears among consumers about privacy infringement.
Companies are taking this seriously. 94% of organizations surveyed in Cisco's 2024 Data Privacy Study said customers would not buy from them if their data was not properly protected., 98% of organizations surveyed report privacy metrics to their board of directors.
Marketers are missing out
Yet within these concerns lies opportunity.
While AI and machine learning sometimes raise these concerns, they also offer the potential for highly personalized engagement strategies that provide consumers with a superior experience while using a minimal amount of data. For businesses, there is a delicate balance to be struck between using consumer data for targeted marketing while at the same time respecting their right to privacy.
Trust is the missing piece of the puzzle
At the heart of this challenge is trust: building trust with consumers about how their data will be used is an important and welcome first step towards giving consumers confidence that brands are using their data in their interest.
Surprisingly, a recent study found that 70% of consumers are willing to share personal data with brands for a customized experience.Additionally, one-third of consumers prioritize brand authenticity and product quality for repeat purchases, highlighting the key role that trust plays in driving consumer loyalty.
For businesses to thrive, they must focus on keeping consumer information safe, respecting privacy, and acting with transparency, which will further build trust.
It's important for brands to maintain the highest standards of cybersecurity and data privacy in order to meet compliance obligations such as SOC II and ISO 27001 certification. Developing controls that limit access to sensitive information to specific individuals is key to creating a safe and trusted space for all involved, including both customers and your team.
AI is not the enemy
Privacy and AI are closely linked concepts for many consumers. Misunderstandings about how AI works and the impact of its access to personal data are widespread, and AI and machine learning are sometimes viewed as enemies, but this is not the case.
AI has the transformative potential to fundamentally change customer engagement – creating the personal experiences consumers desire, building brand equity and all-important trust. Tools like generative AI are changing how marketing campaigns work by delivering unique, personalized experiences at an individual level to audiences at scale.
Useful for marketers Personalize your messages based on the channels your customers use most frequently and customize every aspect of your messages, from recommended items, to location-based personalization, language, and the best time to engage with your customers.
Rather than being seen as a threat, AI is a force multiplier that helps teams deliver even more value to customers.
The sweet spot of effective marketing lies at the intersection of creativity, technology, and privacy: creativity inspires new ideas, technology makes it scalable, and privacy gives customers peace of mind. It's a careful balance that marketers must embrace.
As organizations grapple with these trends, one thing is clear: the future of marketing depends on striking the right balance between personalization and privacy. By leveraging AI responsibly, organizations can unlock new possibilities for customer engagement and earn their audience's trust and loyalty.
James Manderson
Senior Vice President of Success
Braz
