A weak legislative framework that imposes strategic thinking and ethical limits on the part of companies
Legislation is currently changing regarding digital and the collection and use of customer data. Institutions are slow to legislate and give a precise framework to these digital practices. No standard yet exists, allowing companies to prove their transparency in their online marketing practices. It becomes necessary for them to set the limits of what is acceptable by creating, for example, a charter of good conduct to adopt. This charter is of particular interest for consumers but also for online businesses because it is certain that the perception of transparency promotes the development of trust among Internet users.
Ethics related to customer data is an increasingly fundamental issue for companies operating in the field of the web. How far can companies go in leveraging consumer data? What are the codes of good conduct to adopt?
The evolution of technologies with robotics, AI (artificial intelligence), connected objects, puts privacy at the center of concerns for individuals. The latter are more and more inclined to reject companies that do not show transparency on their data collection and use policy but also on their digital practices (product recommendations, retargeting advertising, sharing of data with partners, tracking of online browsing, geolocation, …)
Consumers realize the importance of their data and sometimes try to take back power from companies by giving false information (“trash” email address, wrong telephone number, etc.). It is obvious that this type of practice costs the company. So how do you get consumers to accept new digital practices? The answer is in two words TRANSPARENCY and BENEFITS. Indeed, by being transparent to customers about your practices and providing them with undeniable advantages in exchange for the collection of their data, you are on the right track to building a win-win relationship.
The attempts at corporate opportunism (for example: collection of data without the knowledge of the consumer without providing him with certain advantages) are increasingly “punished” by customers who feel trapped. When they become suspicious of a company, it is certain that resistance behaviors such as negative word-of-mouth, for example, can emerge. This tarnishes the reputation of the company and subsequently, its sales.
From a business perspective, most of them think they are in compliance with the law and don't have to worry about it too much. The latter are quite wrong. The greats of the web are also beginning to concern themselves with these ethical questions linked to data, for example Twitter now showing its users how it tracks them. And you, what do you do ? Do you tell your customers about it?
How to start understanding ethics in your digital marketing strategy?
Data ethics is a largely subjective concept. Everyone has their own definition. It is obvious that companies have a very different vision from that of Internet users on this subject.
The objective for companies initially is to embark on a strategic reflection on the transparency perceived by consumers towards them. In this sense, some advice can be applied:
- It is certain that the consumer must be aware of what is done with his data. You should never surprise him as to the use made of it.
- It is therefore essential that the data collected is strictly necessary for the development of a personalized relationship with the customer. It is about forgetting very long forms with specific questions that are useless for your business such as those related to profession, income, etc.
- It remains very important to use data collected from direct sources rather than third-party data. Request the information directly from the customer, explaining what you are going to do with it. It is very frowned upon by Internet users that you analyze their behavior (browsing, purchase, etc.) to deduce information from it because they will not realize when the data is collected and especially why it is collected.
You will have everything to gain by betting on high transparency. Consumer trust and loyalty will follow. He will be much less hesitant to provide you with his data and to talk about you around him. The challenge for the next few years will undoubtedly be linked to the ability of companies to be perceived as transparent by their customers!
