We may all be tired of hearing about big data but the human dimension to gathering, storing and analysing consumer data has been thrust back into the spotlight by two major news events in the last week.
Firstly, the midata initiative is set to switch from being a voluntary to compulsory code: companies will have no choice but to make the data they hold on an individual available to that individual. Suddenly the big data opportunity is looking more like a big problem!
Secondly, the OFT has initiated a call for information, often the prelude to an inquiry, into loyalty schemes and personalised online promotions. The regulators and legislators seem keen to redress the balance between business and consumers in terms of the information that one holds on the other and the power to wield it. At the very least they want to ensure that the former behaves ethically when dealing with the latter.
But the increased scrutiny provides an opportunity for business to really engage with consumers in a positive way by instigating a genuine two-way flow of information. By sharing data that adds value to the consumer, retailers and brands have an opportunity to build trust and connect with consumers.
Simply complying with midata won't be enough. What good is a CSV file attachment to a consumer? It reinforces the perception that consumers are viewed as a collection of data-points. Real change requires a cultural shift on the part of business, to match the regulatory changes and technological development. There is a big opportunity for companies to differentiate through the ways in which they embrace these changes and engage with their consumers.
Trust remains an issue, as highlighted by our own research, but by sharing data in a meaningful way i.e. helping them make better, healthier, more environmentally healthy choices, companies can convince consumers of the benefits of sharing data. So as the size of the consumer's data footprint grows so does the richness of the data and the quality of the customer experience.
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