Concerns about the amount and type of data held by organizations are increasingly having a negative impact on customer experience. Meanwhile, brands have access to information about their customers, allowing them to personalize every touchpoint. But on the other hand, consumers may be wary of what companies know. excessively You can learn about them and access information they intentionally do not disclose. Here, the relationship between brand and consumer is unbalanced, creating a situation of mistrust. Consumers, customers, or prospects may simply walk away.
To understand how this situation arises, we need to distinguish between types of data (for example, first-party data and second-party data). Additionally, you should consider the concept of zero-party data. To help differentiate between data types and explore the impact of the relationship between customer experience and data, we spoke to Glenn Gore, CEO of Affinidi. (For background, read about the Affinidi Trust Network here and here.)
Definition of data
zero party data They are preference-based or intent-based and are held by individuals to represent different versions of themselves online. These different versions can be categorized as individuals, for example, employees, gamers, philanthropists, fitness enthusiasts, etc. depending on the context.
This is the type of information that may help determine broad preferences regarding interactions with companies and brands. For example, when someone who identifies as a woman in zero-party data visits a clothing website, they may default to a women's clothing line.
First-party data is information collected by an organization when an individual interacts with the organization. It could be a list of store-bought groceries. What's interesting is that zero-party data and first-party data sometimes conflict, Gore said.
he said: “I say I don't want to eat sugary products. That's zero-party data. But according to my shopping history, that's a flat-out lie because I always buy chocolate and fruit juice. . Now you can start seeing what's really fascinating.”
In that context, brands can display messages at checkout suggesting alternative low-sugar products. Assuming the price of the meal replacement is lower, revenue may be lower, but the customer experience will be improved, which is a net benefit to the relationship.
second party data Information shared between a first party and another party with approval. “Say I decide to work with a nutritionist and collaborate on nutritional accuracy,” Gore said. “We're sharing what we buy at the grocery store. So the data from the grocery store (first-party data) is shared with the new nutritionist.
“The difference here is that it's with my consent and knowledge. Nothing else is shipped. The grocery store doesn't know how long I'll have chocolate, even if I don't buy it. I'm not going to share the videotape of what I was staring at.”
Third party data is the kind of information that is collected and frequently sold, and is “the kind of information that gets everyone in trouble.”
Gore said, “This is where the data collected about me is merged with many other datasets and sold without my consent and without my knowledge.'' Using the same example. , my nutritionist says, “Good job, Glenn, you're buying kale and eating lots of healthy food.” But you don't seem to go to the gym, do you? ” How do you know I haven’t been to the gym? I never gave you access to my gym membership. I'm not too happy about that. That's an invasion of privacy. ”
As consumers become more aware of data privacy and increasingly strict laws regarding data governance are implemented, third-party data will not only become less attractive as a concept for the individuals it represents, but also less trust and, ultimately, It starts to look like something that could potentially destroy your customers. experience. It's also an attractive target for bad actors and legislators, and a liability burden for the organizations that keep it.
Data exchange with consent
The key to improving customer experiences and creating truly personalized customer experiences is a combination of zero and first-party data that connects intent and action. Multiple second-party data instances then form a network of consensual data sharing, building mutual trust between consumers and other organizations.
Gore envisions the future of what is now called the “data economy,” where consumers consensually share value and receive value in return by participating in trust networks or creating their own versions. I see it as something that can be done.
The Affinidi Trust Network is a system Affinidi is building that is comprised of “the duality of innovation: two sides of the same coin.” Developers can already incorporate Trust Network components into the products of vendors and service creators. Gore envisions a service that helps with the details of zero-party data exchange for end users who arbitrage their own data.
“They will be the storage hub manager for your data,” he said. “These custodians, who control how you represent and manage yourself, will help you do this on your behalf. Powered by personal AI that can sift through the many digital interactions that occur every day, it can remove many of the tedious details of personal data management.
“You don't want to wake up every morning and see an app that says, “We found 60 more things about you on the internet.'' Wouldn't it be nice to just catalog those 60 things?'' Personal AI helps customers We will help you create a catalog on your behalf.
“The worst thing they do is ask when you need conflict resolution. For example, 'I automatically sorted these 180 different things for you, and these two are contradictory. or “I know you may be in the process of changing your mind about this.” Can you guide me? ”
Google's planned ban on Chrome ad blockers later this year is a good example, as personal data privacy issues accelerate and big tech companies work aggressively to block the use of privacy-focused tools. is. Solutions like the Affinidi Trust Network and Holistic Identity concepts are making more and more sense. .
Consumers don't have to subscribe to every aspect of Lana Foruher's “Don't Be Evil” to feel like information about them is being misused. This is already evident in so-called customer experience platforms that offer personalized interactions. Too omniscient and omnipotent. Representations of prospects and customers derived from purchased and aggregated third-party data create inaccurate “personalization.” Because each individual presents multiple versions of themselves online depending on the context.
Enabling individuals to consent and share relevant information with trusted organizations and brands is a way to build relationships and establish trust. These relationships last and produce long-term results for commercial organizations. The shift to a consensual (and profitable) delivery of your customer experience starts with becoming part of the Affinidi Trust Network. Learn more about.