The Big Data Paradox: Personalisation vs. Privacy
In today’s society, everyone cares about data privacy. Regulators are actively formulating significant laws to ensure that businesses pay close attention to the issue — be it in North America, Europe or elsewhere. While privacy is partly a data protection issue, it is also a marketing matter. Therefore, business leaders should continuously think about their actions, keeping all factors in mind. The trade-off between personalisation and privacy is more relevant than ever before. The more data a company can collect, the more they are able to effectively personalise a product or service. This means an improved level of customer intelligence, allowing businesses to grow. But this ever-better personalisation comes at a cost of privacy. The nature of targeted advertising and recommendations means that businesses know who their customers are and what they are interested in, while much of this information is being gathered with little consent from the consumer. But how far can businesses go in this search for consumer data? Finally, how do businesses achieve a balance between the degree of personalisation and the guarantee of privacy?