News: Personalization Vs. Data Privacy: New Razorfish Report Explores the Delicate Balancing Act

by Anna Munhin Mar 24, 2023 News
News: Personalization Vs. Data Privacy: New Razorfish Report Explores the Delicate Balancing Act

The gold standard of marketing is personalization and being customer-driven, but they may be at odds with what consumers want.

Data privacy is becoming more important to consumers and marketers need to find a way to deliver relevant marketing while respecting the consumer's desire for confidentiality.

A new report from Razorfish shows the challenges of data privacy. Half of the consumers blocked emails, 45% prevented an app from accessing their location, and 45% changed their password. These behaviors can be a sign of brands sending irrelevant content, but they can also signal that consumers are learning how to protect their data to increase personal privacy.

The study shows how people want personalized experiences without putting their data at risk. Eddie Gonzalez, chief strategy officer, performance and experience at Razorfish, said in the report that the tradeoff creates a bit of a paradoxes. Consumers still expect authentic and personalized content that shows their favorite brands care about and listen to, even though they are wary of data-sharing.

The study shows that consumers are not comfortable with companies collecting their photos and face scans. According to a study by Statista, more than half of US adults have taken selfies and uploaded them to a social media website.

People are careful about who they give their data to. The importance of brand purpose is underscored by the fact that 56% of consumers give their personal data to organizations that are aligned with their values.

The report showed that consumers don't trust companies that are more likely to have a data hack. More than half of consumers said they trust healthcare providers and banks more than any other industry.

Almost 19% of respondents were disappointed in personalization efforts, but some 21% found it to be weird.

Razorfish encourages brands to take control of first-party data, to be transparent, and to be intentional with data by creating valuable experiences.