Customer Data Platform — Critical part of data privacy infrastructure
In this era of heightened data privacy awareness, organizations can no longer assume that they have the right to collect and use consumer data as per their wish.
With the enactment of multiple new laws, consumers have the right to know what type of data the organization has collected on them; how it is using their data; and with which third-party organizations, if any, it intends to share their data. Some states have also given consumers the power to object to the sale of their data. [1]
How can CDP be leveraged for Data Privacy
1. Centralized customer data infrastructure
A CDP integrates all the customer data across MarTech tools, platforms and databases, such as CRMs, website traffic, customer call center interactions, and in-store purchases. In the absence of a CDP, these data sets are usually siloed. Thus, there is a higher chance of this data going missing.
However, with a CDP, organizations can store all their customer data in one place. This provides a digital chain of custody — a kind of “paper trail” that gives organizations a history of their customer data and where it came from. Under GDPR and CCPA regulations, it becomes a key imperative for organizations from compliance point of view to know where the data comes from.
Moreover, CDP complies with the “Right to be Forgotten” regulations, thereby helping organizations to get rid of unwanted customer data with complete ease. [2]
2. Unified first-party data
Marketers often rely on third-party data to create identity resolution. These third-party data companies leverage their ability to match customer lists with third-party data and extend it by sending back a unifying customer ID to the brand. However, with increased focus on customer privacy, relying on the intermingling of first-party customer data with third-party sources is problematic, as it can violate privacy norms and policies. CDPs perform this same identity resolution process by using first-party data only, thereby keeping the privacy issues at bay. [3]
3. Honour Customer Consent
Consent Management Platform can be used to collect user consent data. Using a CDP, this data can then be integrated with other customer records to create a unified customer profile. It can then be made applicable to the segmentation rules across different marketing channels to make sure that customers who have opted-out for specific communications do not appear in the list that would have targeted them.
Therefore, combining a CDP with a consent management platform helps organizations create a system of data accountability that can provide consumers an assurance that organizations are complying with the data privacy laws. [4]
References –
[2] https://opensenselabs.com/blog/articles/cdp-and-consumer-data-privacy
