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By4 Min Read
October 13, 2022
One in four Americans won’t do business with data-breached companies, reads the headline of this ZDNet report. And this is getting increasingly true across the globe. Cyber security and customer data privacy has become increasingly important for loyalty marketers and brands in general. At Capillary, we take customer privacy extremely seriously and as a loyalty marketer, you’re the gatekeeper of the end customer’s data.
Regulations like GDPR and CCPA mean more stringent regulations (which are actually good for business). And as a loyalty marketer, one needs to have a clear framework for safeguarding customer data and using it in the best way to benefit both the customer and the business. Some of the points to be kept in mind are:
Over the last couple of years, there has been a massive upsurge in digitization and alongside, a proportional increase in data. But the amount of data doesn’t mean anything if it is not collected in a meaningful manner. A BCG-Capillary report said:
In such a scenario, it becomes critical to have customer interest at the center of all marketing activity. And this is easier said than done. A McKinsey survey reported that some CMOs have retreated to using mass marketing instead of data-driven marketing and this is a sure-shot way to get loyalty marketing all wrong!
Helen Nissenbaum, professor of information at Cornell Tech wrote an industry-defining book: Privacy In Context: Technology, Policy, and the Integrity of Social Life – where she introduced the concept of ‘Contextual Integrity’.
The definition of privacy is very subjective and ‘Contextual Integrity’ basically tries to define it better by looking at information flows and how can we arrive at a more holistic version of privacy laws in this modern digital age. Contextual Integrity can be understood as “The right to privacy is neither a right to secrecy nor a right to control but a right to appropriate ﬂow of personal information” (research paper).
And for a loyalty marketer, it is important to be in tune with these developments because along with certain restrictions, it also brings in new opportunities-
1) Privacy Innovation: Properly designed regulations can trigger new innovations which are capable of offsetting the costs of compliance.
2) Data Privacy as a Competitive Advantage: While complying with policies requires investment in different forms, being ahead in the game gives you a competitive edge while pitching to new clients. Businesses and consumers care for privacy and there are opportunities where people are willing to pay a premium for better security.
While here’s a post on all you need to know about data privacy, at Capillary, we’ve helped 250+ brands touch more than 900 million end customers in the best manner possible.
As a loyalty marketer, while the brand collects information about the end customer, pre-defined rules help you store and safeguard the data. The end customer can set preferences for how and how often would they like to be communicated, in what ways, and a two-way communication channel through which they can voice their feedback.
Chapter 3 of GDPR (General Data Protection Regulation) gives several rights of the data subject:
At Capillary, data privacy and security is a top priority and there’s a dedicated team headed by the Chief Information Security Offers. We are certified by the ISO, PCI, compliant with SOC2, and GDPR compliant. All data at rest is encrypted with state-of-the-art 128-256 bit keys and all production infrastructure is architected to sit within isolated Virtual Private Clouds (separate for computing, and storage). There is a four-step process we follow:
It’s important for loyalty marketers to look at these regulations as steps forward in making life better for the end customer. Leaps in technology have enabled brands to do a lot more with customer data and with that, also comes enormous responsibility in the form is consumer trust. It is in the best business interest, to stay ahead of the curve when it comes to data privacy. This can be done by using some of the best consumer experience platforms like Capillary and delivering a superior end-customer experience.
October 13, 2022 | 4 Min Read
64% of customers blame companies over anyone else, including