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What is Customer Preference Management?

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User data is like oil to the marketing department; It is the fuel needed to increase profits. Most marketing strategies are built on the analysis of this data. But for users whose data is collected, this situation is not so good. Various data collected from many places create privacy violations and cause problems. Customer preference management, on the other hand, provides a more ethical data collection process and the continuation of this process, in cooperation with the user, with the consent and guidance of the user.

Data, Analytics and Violations

In 2010, marketing departments started collecting data wildly. In the process of collecting these data, the quality of the data was ignored and the focus was on collecting "more data" only. When the collected data was used for marketing strategies, incredible success was achieved. With the development of Big Data, data collection operations began to increase.

In the data collection process, where there was no limit, violation of privacy was discussed from time to time. With the General Data Protection Regulation, some limitations were brought to the data collection processes. These restrictions aimed to protect the personal data of European citizens, but would complicate the operation of Big Data and data collection processes.

Due to privacy violations, most browsers announced that they would no longer support the collection of third party data, and gradually began to reduce the applications that support this process. As a result, most companies have turned to collecting data without violating privacy through user preference management.

Data Types and Privacy

Privacy violation occurs in the process of data collection. Different types of data have different ways of collecting. There are four types of data types:

  1. Zero Party Data: This type of data is collected within the consent of the user and by communicating with the user. For example, you are on an e-commerce site that sells hair products, a pop-up appears that contains photos of different hair types and asks which hair type is closest to you, this is the zero party data collection method. You choose the data to be given with your own consent and in a way that suits you.

  2. First Party Data: This type of data is collected with the consent of the user but without interaction. For example, you logged into a website, first a pop-up appeared asking your consent for the collection of your data and you gave your consent. After approval, your movements on the website are recorded. The searches you make, the keywords, the products you look at are recorded and it is aimed that the next time you enter the site, suggestions will appear in line with this data.

  3. Second Party Data: It is the situation where a company shares the data obtained from its own audience with other parties. In short, it is the sold version of first party data.

  4. Third Party Data: This type of data is unprocessed, general data obtained from different sources. It is used when it is desired to reach a different audience. Since it is raw data, it must be processed by data management programs. Comprehensive audience profiles can be created after processing.

What is Customer Preference Management?

While trying to reduce the use of third-party and second-party data in current marketing strategies due to privacy violations, zero and first-party data are being used more. In the sensitive data collection process, the user preference management allows the user to decide for himself the process of sharing and using the data.

Why is User Preference Management Important?

In the study sponsored by Didomi, which investigated the effect of privacy on purchasing decision and brand loyalty with 4000 consumers in Ireland, the United Kingdom, France and Germany, it was concluded that customers act according to their privacy processes. In the same research, companies leaving unannounced cookies on the user's device for their own benefit caused distrust, and therefore 15% of consumers stated that they rarely accepted marketing e-mails, and 30% only sometimes.

In this new era, it will be beneficial for both the user and the company to respect the privacy of the users and to get their ideas on how the marketing process will take place. You can reap the gifts of a trust-built relationship with quality data, if not more.

Advantages of Customer Preference Management

Users are more concerned about their privacy than ever before. Privacy is a basic human right. Respecting and paying attention to these rights satisfies the customer and determines the direction of his relationship with the company.

When the user chooses which data will be shared, what it will be used for, and which channels to communicate with the user, the user will in a way determine the relationship he will establish with the company.

It is one click above the expected and desired level of the company to exceed the expected level of customer service through data, allowing users to define their own UX. It increases preferability.

In the current ecosystem, customer loyalty and user acquisition are closely related to data collection processes. Data collection processes and confidentiality guarantees have a significant impact on the purchase decision, making it almost imperative for companies to be more sensitive. Gaining the trust of the user has an important place in current marketing practices.

As a result of the trust of the user to the company and the company to the user, more useful and qualified data emerges. A personalized experience  can be offered with qualified data. 71% of customers find their shopping experience impersonal to be frustrating, while 44% of customers say they would likely choose companies that offer personalized shopping experiences again. For users who demand reassuring behavior and personalization, investing in user preference management is definitely not a dead investment.

Is it enough just to give confidence in data collection? 84% of users also want to have control over how their data is used. The purpose of the collected data, where it is used and whether it is sold or not can also be a source of concern for users.

User preference management gains the customer's trust by allowing the user to direct the data collection and processing process. It ensures that the collected data is more qualified. It also satisfies the customer by providing a personalized experience at the end of the process.

PeerBie and User Preference Management

PeerBie is a business management platform that provides simple digital management of the processes that businesses need. With the customer relationship management feature it offers, you can store the data your customers allow, use statistics and develop new marketing strategies. You can offer a personalized experience based on customer preferences.

With PeerBie, you can determine who has access to customer data, thus protecting user data. In projects with your customers, you can assign tasks to your employees' calendars and share customer information with them.

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