• Helen Pritchett

Data Management and Consent – are you getting it right?

Updated: May 14, 2021

Data is likely to be one of the most valuable resources you have. Data, and the terms under which your customers permit you to use it, provides unique customer insight. This insight gives you the ability to target customers with personalised messaging and understanding of how, what, when or where to communicate with them. Customer data and consent is vital for brands to not just have, but to treat with respect.

Having the correct data management systems in place is imperative for businesses who want to guarantee and gain the maximum value from customer data. Data management is a process that includes acquiring, validating, storing, protecting, and processing required data to ensure the accessibility, reliability, and timeliness of the data for its users.

Good data management – and the consent this delivers – has value beyond just compliance and data quality. It breeds customer longevity and loyalty, which, in turn, brings ROI. To ensure companies have the right data for decision-making, they must invest in data management solutions that improve visibility, reliability, security, and scalability.

Customer data is the fuel in your business machine.

A recent DMA survey of data and marketing professionals found they estimate that for every £1 spent on consent and preference management systems, their business receive an average of £40.55 in return.

What is more, businesses with preference management systems in place are more likely to report positive increases in crucial areas of their business where the following percentage increases were seen:

  • Engagement rates 59%

  • Sales/business revenue 53%

  • Customer database size 52%

  • Opt-in rates/sign-ups 47%

The DMA concluded “Given what the metrics say, marketers need to do more than just be GDPR compliant. Going the extra mile with customers data is what really makes the difference between ‘a brand’ and ‘a successful brand’”. Furthermore, data management systems allow brands to offer more personalised experiences and increased transparency, two key factors in fostering long-term customer loyalty and trust.

Good data management has huge value for businesses. Simple compliance with personal data legislation is not enough, companies must have the right data management processes and systems in place. Businesses that do this can guarantee to gain maximum value from customer data.

Of course, you may be using a specialist third-party agency, like ProspectaBase, to supply your data. If so, this organisation will undoubtedly have all the right data management and consent systems in place to make the most of the data intelligence available to you so you can relax and look forward to the positive results of your campaign.

There is nothing in the GDPR that prohibits the use of third-party data sources, the legislation simply sets out a number of processes and safeguards that businesses must undertake. The GDPR outlines six principles to which you must adhere to when dealing with any consumer data. The DMA’s Data Guide offers advice on how to best follow these.

Consent is crucial

The boom in data availability also brings with it a host of information that can be developed into revenue-generating insights. For example, organizations can build buyer profiles on customers, allowing them to create personalized experiences, which in turn lead to better brand affinity and loyalty.

For this to benefit companies, consent is crucial. The DMA has found that the vast majority of businesses are using consent (53%) or legitimate interest (36%) as their legal basis for contact under GDPR. A large proportion of data comes from company websites, social media activity or, pre-COVID, events. The DMA’s research did show that company’s own data is often judged by internal marketing teams as inaccurate, which is where the services of a third-party data agency can become invaluable. Inaccuracies are largely believed to be ‘customer error’ or ‘fake data’ and it is the cleansing processes used by third-party data suppliers that can wheedle out these inaccuracies and provide clean, accurate data for a healthy marketing database.

Data Management and Consent – are you getting it right?

We’ve only skimmed the surface here, this is a complex subject but the basics are simple. Any data you gather or buy must be treated with respect and consent must always be gained. Getting it right and sticking to these simple premises will keep you within the regulations and keep your customers loyal.

#datamanagement #customerloyalty #customerconsent #datamatters #datacleansing #GDPR #dataprivacy #customerdata

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