The New World of Data Sharing Will Require Businesses to Step Up Their Game
There is a greater need for businesses to rely on and authenticate good data sharing practices in the predicted new world of data sharing – according to new Forrester Research, Introducing Adaptive Intelligence.
In this predicted scenario, customers are said to expect more from brands, and as a result, privacy notices will need to be simpler and easier to understand.
Businesses can benefit by working with companies like TrustArc to certify, authenticate, and advise on good data sharing practices.
What is Adaptive Intelligence?
Forrester introduces the concept of Adaptive Intelligence – the sharing of data between companies more freely to find strategy-specific information and adapt to dynamic market changes appropriately and promptly.
This method accounts for gaps between independently sold profiles from third parties and internally collected company data, otherwise known as first-party data.
For instance, a retail business may observe its shoppers’ behavior while in the store. Still, their behavior after they leave the store may be what is needed for a new strategy – a more holistic approach to data.
Collecting data using internal processes compiles what may be needed at one point in time or one transaction. It, therefore, is too narrow in perspective to aid in developing new insights.
Will Data Brokers Become Obsolete?
The authors do predict that data brokers will cease to exist if they do not expand and become an accessible open data marketplace.
“We expect traditional data brokers to face further price pressure as marketers look for sources that are more collaborative, more transparent, and potentially better suited to their customer engagement goals.
Therefore, becoming privacy-compliant, permission-based clearinghouses for customer data and facilitating data partnerships between marketers, advertisers, and consumers is the only course of action for data brokers.”
However, it does not mean that the function of data brokers will become absolute, instead companies will have a first-hand active participation in the exchange of data.
This report advocates companies to treat data as a product.
How will customer expectations change?
- Share data with each other
- Provide a way for them to see and use the data about themselves
For the benefit of creating and adapting marketing segmentation models – the best analytics tools will be hosted in cloud databases.
Due to the increase in the amount of data sharing, there will be a need for new opt-in methods, choices and notifications requirements. Privacy policies will be explained visually to better educate customers and portray the value of data sharing.
“For example, an ecommerce site could display icons indicating that it doesn’t retain credit card data, while a travel site might display an icon asking for permission to authenticate passport data in real time.
In addition, organizations will look for new certification from firms such as Symantec and TrustArc to vet and authenticate good data-sharing practices.”