Do you like biscuits or cookies? Probably. Like almost everyone. Now imagine you've been bitten by a "cookie monster" and are put under the cookie curse. The only way to continue your life, work and productivity is to continually eat cookies. You can't get enough of them and you need to collect lots of them.
To store your cookies, you partner with a cookie bank (since their service is free). The catch is that the cookies don't belong to you. The rules are simple: you can eat them whenever you want, but you can't take them with you. You can't even change your cookie bank without losing the cookies you've already collected. And you're in the dark about what the bank actually does with them. Does the bank resell the cookies? Or worse - do they even eat your cookies to be as cute as you?
OK, we'll stop here: When we say "cookie", we obviously mean your customer data. In this blog, we'll show you some of the risks that arise when you don't have such data. And how you can avoid falling into this trap.
THE PRICE OF YOUR DATA
Have you ever given out your personal information for a discount?
For example, in a fashion store to get new clothes at a cheaper price. When you got to the checkout, you were offered a 10% discount for giving your email address, date of birth and some additional information? Great! But what is the price for giving away this data? How is your data used?
Not long ago, data was perceived as something so abstract that consumers simply gave it away without due diligence — and many companies did too. Today, companies know that data is a goldmine. It has become so valuable that companies have started buying additional data and using it for their marketing.
Data is not as tangible as money, so many companies are OK with having a third-party data service or analytics provider own the data they collect. They probably wouldn't do the same with their own money. However, as the correlation between data and profits becomes stronger, many companies now treat their customer data like a valuable asset, and their new motto is: "Hands off my cookies!"
So why are these companies trying to regain ownership of their data?
Here are the three main reasons why companies want their data back:
The ability to export and transfer data
Control, security and flexibility in the use of data
Consumers are increasingly concerned about their personal data
3 RISKS OF SHARING OWNERSHIP OF YOUR CUSTOMER DATA
1. You can't take your data with you
As with any MarTech solution, when you choose a new analytics provider, you don't usually think about the possibility of switching. It's almost like talking about divorce while you're getting married - no one wants to think about that!
However, as the relationship progresses, there may be reasons why you may want to switch to another analytics provider. Some common reasons might be:
You are dissatisfied with the solution
There is a better service
Technology is not innovative enough to keep up with your needs
Changes in regulations and the GDPR
Changes in your industry or business model
Internal restructuring, e.g. new management or strategies
It's very likely that you will at least consider changing your data analytics provider. Before purchasing a solution, it's only natural to ask yourself the following questions:
What about all the time, money and other resources you spent collecting this data?
What about the downtime you will encounter while guatemala phone number data rebuilding your database? How much will lost sales and customers cost you?
What about the time and money you have to invest in adapting to new data structures and formats?
Before you sign a contract, you should always consider all possible scenarios. This point alone tells you that you should have your customer data. However, there are two more things you need to consider.
2. How is your customer data used?
You're giving away ownership of essential business information. Your revenue and profits depend on your customer data—except that it's no longer truly yours. Many marketers are concerned about giving away ownership of important customer data and how it might be used, so you need to be extra careful when choosing analytics providers.
Stay curious, pay attention to details, and ask plenty of questions about data ownership when evaluating an analytics provider. It's best to leave no stone unturned, so always ask questions and get an overview of how your data is stored and handled.
3. Customers are increasingly concerned about their personal data
What happens if your customers find out you have access to their personal data? What if they ask you how that data is being used?
Until recently, few cared much about their personal data, and many willingly gave it away in exchange for discounts and rewards. A KPMG survey found that consumers are now more concerned about sharing their personal information. Data transparency has become a priority for your customers. And while they trust your company, they may not feel comfortable with third parties having access to their data.
So, after investing so much time and money into building trust with your customers, why would you risk damaging your customer relationships with an analytics service? After all, there are plenty of platforms where you can own your customer data. It's important to think about what your analytics provider may actually cost you. Spending a little more money can be worth it, especially if it helps you maintain trust between your customers and your brand while still providing outstanding experiences.
WHY IT REALLY MATTERS TO OWN YOUR CUSTOMERS' DATA
While there are many analytics providers on the market, let's look at Mapp Intelligence as an example. The best way to start is to know if the solution you choose allows you to own your customer data.
When it comes to Mapp Intelligence, you can not only export your customer data and create your own databases (whenever you want), but also integrate with external data models and reports. In fact, we always recommend that you do this so that you can use it offline for any purpose. If you need help exporting your data, you can use a CSM to help you with that.
Another advantage of Mapp Intelligence is that the program offers data protection and GDPR compliance. This ensures that your company can easily comply with data protection regulations and that your customers feel safe.
You can finally sleep soundly knowing that your data is yours alone and nothing is happening in the background without you knowing about it. And the only access our team has to it is for the times when you need help.
But that's not all.
Mapp Intelligence allows you to do more than just store and export your customer data. It is a marketing-friendly platform that collects and unifies your customer data and gives you more flexibility in your analyses.
Watch this short video to see what Mapp Intelligence can do for you.