Privacy Improves Marketing Effectiveness

Privacy Improves Marketing Effectiveness

Across the business, there’s often a perception that data privacy compliance hinders the ability of marketing to personalize campaigns and segment audiences—which, therefore, hinders innovation, effectiveness, and the ability to drive revenue. Marketers often fall prey to this concern. However, there’s evidence that this is simply not the case. In fact, embracing privacy compliance programs and using privacy-oriented technology like Osano can improve marketing and sales effectiveness, drive efficiency, and more.

Research shows that employing personalization in digital marketing improves both open rates and the value of each dollar spent:

• 80%¹ of people are more likely to make a purchase from a personalized email.
• Personalized emails have transaction rates that are six times² higher than non-personalized ones.
• Automated flows such as abandoned-cart or post-purchase emails generate up to 30 times³ more revenue per recipient

Customers Want Personalization but Only with Consent

Customers want a personalized and consistent experience across channels, and 61%⁴ expect brands to tailor experiences based on their preferences. Do privacy-friendly practices change that? No, but there’s a catch: 69%⁵ of customers say they appreciate personalization IF it’s based on data they’ve shared with the business directly. 

Privacy-Forward Personalization Can Drive Better Results

While privacy laws like the GDPR and CCPA may limit opt-in rates and cookie-based data collection, this doesn’t mean marketing will become less effective or more costly. Marketers who adapt by focusing on first-party data can achieve the same results while spending 10% to 20%⁸ less.

And, contrary to popular assumption, embracing data privacy can make marketing more efficient:

• Ads personalized with data willingly shared by users are 7%⁹ more relevant than those based on cookies.
• Customers who feel in control of their data when interacting with your company are twice¹⁰ as likely to find advertising relevant.
• Those customers are also three times¹¹ more likely to react positively to advertising.

In fact, 31%¹² of customers say that understanding how data sharing works with your company makes them more likely to agree that data sharing in return for more relevant ads represents a fair value exchange.

How Osano Helps Improve Marketing Effectiveness

With Osano’s privacy platform, marketing teams can balance personalization and compliance, building trust with consumers, increasing the likelihood of consent, and leveraging data as a powerful tool for success.

With the Osano platform and its approach to compliance-friendly data collection, marketers can increase engagement and the likelihood of data sharing, which can improve the impact of marketing expenditures and optimize return on investment.