BLOG POST 4 mins 02/18/2020

Leveraging Preference Management: Part 1

Modern brands are faced with a significant challenge. You have to create a more personalized and unique customer experience than ever before. To build trust and drive increased engagement, you must creatively leverage consumer preference management. 

However, integrating dynamic preferences across the entire customer lifecycle without a firm handle on your data is nearly impossible. That’s why a preference management strategy must be at the top of marketers’ to-do lists in 2020. 

Because getting preference management right is so important, we’re breaking down best practices, strategies, and tactics in a three-part blog post series. This group of articles will collectively address global privacy regulations, consent, a vision for preference management in 2020, and the three phases of building a modern preference center

For this first article in the series, we’ll look at how privacy regulations are growing around the world and how consent plays a key role in these new laws.

The Expansion of Global Privacy Regulations

It’s common knowledge that the European Union (EU) has and will continue to leverage heavy fines for non-compliance of its General Data Protection Regulation (GDPR). And this is only the beginning of what’s to come. 

The truth is, in 2020 more and more countries will institute new privacy regulations or execute more stringent updates to existing standards. Nothing emphasizes this more than the California Consumer Privacy Act (CCPA) that went into effect on Jan. 1, 2020 and a similar Brazilian privacy mandate that will take effect August 1, 2020.

These privacy laws have one purpose: To protect the individual from unlawful practices. In addition, they’ve also been created to give consumers confidence in the security of their personal information.

Not surprisingly, some marketers say these laws hamper business operations and growth. But others choose to look at the advantages, such as ensuring clean data gathering and management processes. 

The smartest marketers see the new privacy standards as an opportunity to fine-tune their audiences, understand those audiences at a granular level, and serve them messages that resonate. 

These marketers view the most recent data privacy laws as a way to drive better business, better opt-in rates, and better value for their marketing and sales dollars. 

The Importance of Consent

Consent plays a pivotal role in all privacy laws. The burden falls on businesses to ensure their teams are offering – and consumers are given – the proper opt-in/opt-out options and required notices. 

The CCPA is focused on the sale of consumers’ personal data and providing opt-out abilities. To comply with CCPA, you need to provide consumers a way to opt-out of the sale of their personal information, as well as advertising and data collection cookies on your website. You must also give notice to consumers at the time of personal data collection if that data may be shared or sold. 

The GDPR is focused on consumers’ explicit, opt-in consent for a broader range of data usage. Under the GDPR, consent has a precise definition: A clear, affirmative act establishing a freely given, specific, informed, unambiguous indication of a consumer’s agreement to track, store, or sell data. It must also fall under these qualifiers:

  • Unbundled: This consent must be gained separately from other terms and conditions.
  • Active Opt-In: An active opt-in is required, so pre-checked opt-in boxes aren’t allowed.
  • Granular: You must include consent options separately from other types of processing.
  • Informed: You must provide sufficient information enabling an informed decision.
  • No imbalance of power: Consent isn’t considered freely given if it’s determined there’s an imbalance in the controller/individual relationship
  • Easy to withdraw: Companies must communicate with consumers about their rights to withdraw at any time and how to take that action. 

One of the most important parts of gaining consent is keeping a record of the captured consent. It’s not enough to simply get an opt-in. Tracking consent and keeping records updated is essential for compliance with all privacy laws. 

Companies need to be able to show demonstrable proof their processes are compliant. Should any governing authority come knocking on your door, you must have a way to show the record of compliance and all the details related to it.

The Smart Preference Management Approach

There are several approaches companies have taken to comply with the various global privacy regulations. Some take the most conservative approach available, requiring a complete, confirmed opt-in for all consumers. Others have chosen a regional approach and use geo-location to dynamically present the compliant option based on the consumer’s location. 

Still others have taken a more flexible approach, introducing preference management technology to automate the entire process and ensure compliance. These marketers are able to drive a more fluid consent capture strategy and avoid hindering immediate marketing plans.

Whatever method you choose to pursue, at the end of the day these new privacy laws have driven an awareness of the importance of personal data. This has led to the organizations that manage this data to control consumers’ personal information more strictly. It also gives consumers more power over who does and who doesn’t handle their data.

For more information about preference management strategies, watch our most recent expert webinar. We discuss the stages of driving a tactful customer journey by leveraging a preference center, reducing global unsubscribes, and utilizing opt-in best practices to catapult a holistic marketing engagement strategy.

Want to dig deeper into building customer trust through preference management? Download our free eBook!

To learn more about the OneTrust PreferenceChoice preference management solution, schedule a 1-1 meeting to talk to an expert today. 

Onetrust All Rights Reserved