Last Thursday, 3rd of October 2024 we had the pleasure of hosting an insightful LinkedIn Live conversation on ethical personalisation, featuring industry experts StJohn Deakins (CEO of DataSapien, Member of the Ethical Commerce Alliance), Ket Patel (Data Monetisation and Personalisation Expert, ex-Zalando), and Borja Santaolalla (ECA Advisor and Co-founder at Empathy.co).
Which are the challenges and opportunities in implementing ethical personalisation strategies that balance customer trust with business profitability?
Zero-Party Data as an enabler
“Zero-Party Data refers to [any] data which a customer intentionally and proactively shares with a brand”
Forrester Research, 2019
StJohn highlighted the concept of zero-party data as a proactive approach to ethical personalisation. By empowering customers to process their own data using AI within their domain, brands can create richer, more personalised customer journeys while maintaining trust.
According to DataSapien:
“The final step on this path is the evolution of the customer app to become a Domain Super App, a unified platform that integrates various services within the sector into one seamless experience across many, joined-up, customer jobs. From product discovery to customer service, these super apps offer personalised recommendations based on the user’s data, and the outcomes that they desire. However, the next generation of super apps will take this further by allowing users to securely hold, analyse, and selectively share their zero-party data within the app. This fosters a mutually beneficial relationship where users control their data, and share it with brands to enable them to deliver more meaningful services.”
Industry examples
Ket Patel provided examples of industries successfully leveraging zero-party data:
- Beauty companies using skin guides to offer personalised product recommendations
- Insurance comparison engines collecting detailed customer information
- E-commerce sites potential of using product filters as a form of zero-party data collection
Challenges in implementation
Many companies are still in the early stages of leveraging first-party and zero-party data, facing challenges such as:
- Data accessibility and architecture issues
- Lack of knowledge on how to effectively use collected data
- The need for clear value propositions to encourage data sharing
Balancing Ethics and Profitability
Ethical personalisation should not be viewed as an additional cost, but rather as an investment that can drive better business outcomes. Key strategies include:
- Focusing on building trust through transparency and consistency
- Investing in flexible, agile technology solutions
- Embracing experimentation to identify profitable personalisation strategies