Posts Tagged ‘Privacy’

Data Privacy: Who Draws the Line?

March 10, 2014

ImageGovernments, privacy advocates, companies large and small, and private citizens all have an opinion on what, where, and how private data should be collected, stored, used, and shared.  It is a complicated problem that leads to more questions as technology evolves.

The latest complication is target marketing and predictive analytics.  Targeted marketing has been around for a few years now.  The process of displaying ads to users based on historical browsing patterns.  However, when predictive analytics is mixed into the game, the ads theoretically become more relevant based on a user’s browsing history and a number of profiles that have been setup to match possible interests with displayed browsing patterns.  The data is collected via cookies placed on a user’s device.

Soat discusses that while predictive analytics can be helpful and even valuable, they do have the danger of getting ahead of the data and making predictions that are not specifically supported by data findings.  The quantity of data being collected today even extends beyond direct browsing behavior but can also include online discussions and offline purchases.  Organizations are becoming very sophisticated in how they gather, aggregate, and organize data, all of this in an attempt to market more effectively and sell more directly to consumers.

Why is this type of data gathering detrimental to consumers?  How does this accumulation of data and the use of predictive analytics and targeted marketing harm society?  How does this data gathering affect a person’s privacy and rights to control what is shared, sold, used, or even gathered?

Data privacy is very important for obvious reasons.  People do not want their browsing history made public for any number of reasons but even from a strictly marketing perspective, this kind of data can have consequences.  Targeted advertising and predictive analytics can open entirely new forms of advertising and selling offering specific promotions to individuals that can include customized pricing online that isn’t available to everyone.  It can include special mortgage rates to one family based on the types of online activity they and others who also meet a developed profile practice.  It could (if taken to an extreme) add meta-information to a company database that could lead to denial of insurance coverage because a family member searched for diabetes treatment options.   Imagine if a healthy family of four was denied coverage because their teenager was performing research for a science project on Diabetes or some other disease?  Farfetched scenario?  Decisions like this could be closer than you think. Soat tells us that even though there are rules stating some practices are forbidden, some companies can get very creative in getting around established regulations.  These are just some examples of where user’s privacy rights must be maintained and why it is important for consumers to understand not only how organizations use their data but how they can understand what is being used, how it is used, and how they can protect their data.

Any reputable organization will have a privacy policy on their website or as a part of their mobile applications.  This policy should describe how they gather data and what types of data are being gathered.  If a user is fortunate, the privacy policy will also include topics around affiliate and third party usage of data gathered but that kind of disclosure is not required everywhere.  Even when various topics are disclosed or included in a privacy policy, every day users quite possibly lack the time and interest in reading a multi-page document that is filled with legal jargon.  When it comes down to it, the user is responsible for their own activity and should read these policies before using an organizations apps or web tools.  However there are two big steps that could be taken by data users that would make consumer privacy concerns less stressful.  Organizations should make more of an effort to simplify their policies to make them easier to read and understand by end users, less legal jargon and more straight talk.  Organizations should also do a better job at getting together and stating clear lines of data usage.  Clarify their boundaries of how data will be used and be very clear where those lines lie.   We as consumers can help in this process.  Consumers are not powerless, they can put pressure on organizations through social campaigns, email blasts back to our vendors or choice, even not buying products they sell, all to make a statement of how consumers want privacy concerns to be addressed and resolved.

Right now, it is a matter of people educating themselves and taking the time necessary to read policies and understand the uses of their data.  They then must make the decision of if they are comfortable with the possible risk.  It’s going to take a societal change to make a dramatic impact but it can be done.  Organizations need to be transparent in their use of consumer data and people need to be aware of how their data affects the way organizations seem them.  Let’s all help draw the lines sharing responsibility and accountability.

Striking A Balance Between Consumer Privacy and Marketing Analytics

August 8, 2013
Digital Privacy

Where is the line between personal privacy and market research?

Today marketers have access to vast amounts of data about consumers and consumer behavior.  A person’s path can be tracked through a website.  Calls can be recorded and analyzed as they are made into customer service and support centers.  Conversations on social platforms can be monitored and engaged in.  Customers and prospects can be dynamically presented with special offers based on browsing and search patterns.  It can be kind of overwhelming to digest this much data and the user profile that can be generated from this data can be very complex and revealing.  Where does marketing cross the line between gathering good information to help a company grow versus infringing on personal privacy?

This is a multi-billion dollar question whose answer changes not only over time but also by global region or country.  Norway, Finland, and Germany have some of the strictest privacy laws and restrictions while the United States, Russia, and India have minimal restrictions, and China has virtually no restrictions on the control of private personal data (Forrester,2013).

Most user data comes from interactions people have with organizations each day.  It is people calling with cable problems, browsing a site looking for a new pair of shoes, even people checking in at restaurants via tools like Facebook or FourSquare.  Seems harmless right?  What if someone checked in at the same coffee shop as did one of the Boston Bombers? What if they also happened to share the same Bank?  What if they also had an account at the same library?  These seemingly separate and unique daily activities can be used to build a pattern of association between these two people and suddenly an innocent person could be associated with a terrorist.  This is an extreme example but shows why some of the recently revealed government programs are so highly controversial.  Some people say “what’s the harm in collecting phone numbers, I have nothing to hide.” The problem is the possibility of creating associations and patterns of behavior that could mistakenly identify innocent people with possible trouble makers as outlined above.  There are safeguards in place to help prevent this from happening but no system is 100% perfect.

Outside of the covert systems described above, there are many solutions being used by the majority of large companies to gather personal and behavioral data of individual’s as they interact with company brands.  Calls coming into a call center are recorded.  Social media services are data mined. Emails are analyzed. Organizations use software to build patterns of behavior and preferences for this data. Feel violated yet?  Well, put your mind at ease.  Very few people within an organization have a full view into all the data that is collected and analyzed and most data does not even have a name associated with it.

For example, if someone does a Google search for “Kids Shoes.”  Guess what just happened (other than getting back 1,286,345 results).  Google placed a cookie on their computer that shows they searched for Kids Shoes. (Good news, if privacy settings are adjusted to block cookies, this doesn’t happen so there is a way to not be tracked).  Just in case the term cookie is unfamiliar, a cookie is a small bit of code that is installed on a person’s computer.  The bit of code is used to hold details about a user’s activity on a web site or even multiple web sites.  Google now:

  1. knows that the person searching for Kids Shoes is interested in Kids Shoes
  2. will now search for Google Advertisers who are selling Kids Shoes (and has paid for the AdWords Kids Shoes)
  3. makes a note in its data base that the computer looking for Kids Shoes is likely to be interested in ads for kids shoes.

The user then click on a few search results links including one from Keddy’s (fictional store name).  On the Keddy’s site, some shoes are reviewed and a pair is even added to a shopping cart but not purchased yet.  Guess what, the Keddy’s site added a cookie to the user’s computer that remembers what was looked at, when it was looked at, what was added to the shopping cart and if a sale was completed. The user exits the site and then goes back to work and closes the browser.  Now fast forward a few days and the user is on Facebook.  Suddenly an ad for Keddy’s shoes shows up and it highlights the exact pair of shoes the user put in their shopping cart and just by chance they happen to be 10% off.  How much of coincidence is that!  Well, it’s not.  The cookies that Google and Keddy’s placed on the user’s computer work together to present the ad for a product that was deemed interesting (by being placed in the shopping cart). Studies show that if presented with a familiar product again, people are more likely to buy it, refereed to as re-targeting, the process of getting a product back in front of a consumer increased conversion rate (Li, 2013).

So, is this a violation of personal privacy?  Is your browsing history something that should be protected from marketers?  Should an organization be able to put a cookie on your computer without you knowing about it?  This is where great strides are being made in privacy laws.  Between efforts of search engines and legislators around the globe (with a few exception countries like China) efforts are being made to limit what data are collected, what can and can’t be done with data gathered from and stored on a user’s computer and during other interaction types a consumer may have with an organization.

Search rules have changed considerably to address privacy concerns as well.  Until 2011, each search string that was used by anyone searching in Google was recorded and made available to site analytic services and site reporting applications like Google Analytics or Adobe’s SiteCatalyst (Google, 2011).  With new privacy rules being enacted and enhanced privacy settings enabled in browser applications, a large amount of search string data is now reported as “Unknown” or “Not Available.”  For some sites this can be over 55% of overall site traffic (Pollitt, 2013).  For marketers, this is concerning and frustrating.  Where did all the great data go?  How can marketers get it back?

Many consumers don’t understand how this tracking takes place or that it is even happening.  Privacy guidelines and regulations are put in place to help notify users that their activity is being monitored.  When a notice appears on a web site, users are well advised to read it and understand that their activity may be being monitored and recorded and then used for a number of marketing and/or research efforts.

What do you think?  Should organizations do more to educate or notify their customers and prospects that they are monitoring activity?  Do they have an inherit right to do this?

References:

Forrester. (2013). Privacy and Data Protection By Country. Retrieved July 24, 2013 from http://heatmap.forrestertools.com/#

Google. (2011). Making search more secure. Retrieved July 16, 2013 from http://googleblog.blogspot.com/2011/10/making-search-more-secure.html

Li, J. (2013). Study: Online Shopping Behavior in the Digital Era. Retrieved July 28, 2013 from http://www.iacquire.com/blog/study-online-shopping-behavior-in-the-digital-era/

Pollitt, C. (2013). Google’s Unknown Keywords Jump from 22% to 55% in the Last 30 Days. Retrieved July 12, 2013 from http://www.kunocreative.com/blog/bid/72355/Google-s-Unknown-Keywords-Jump-from-22-to-55-in-the-Last-30-Days