The pandemic altered the way many B2B2C manufacturers interact with customers. While the retail outlets that would typically distribute their products were closed, many manufacturing brands in consumer packaged goods (CPG), fashion, equipment, etc., realized the value of adopting a direct-to-consumer strategy.
These brands traditionally had limited interaction with the end consumer, as their model was to sell their product to a reseller. However, with resellers closed or operating at limited capacities, many manufacturers wisely built digital experiences to interface with, sell to, and collect data from their customers directly.
Data that was collected and owned by resellers or intermediaries suddenly became available directly to the manufacturers to learn from and capitalize on — opening new revenue streams by charging other entities for their data, using the information to cross- or upsell products or create a more frictionless experience for customers.
For example, a carmaker recently approached Thoughtworks with the question, “What tools can we arm salespeople with to provide the sales experience of the future?” In partnership, we built a platform that leveraged the carmaker’s data to provide quicker access to information and sales tools, meaning greater customer satisfaction.
Risks of Data Collection
However, there are inherent risks in collecting consumer data — not only of hacking, malware, and data theft but also misusing the collected data that may damage one’s brand or even create legal exposure.
While many think of malware and hacking as the greatest threat to organizations, a new “Looking Glass” trends report from Thoughtworks suggests organizations should be giving equal attention to avoid shooting themselves in the foot by incorrectly using consumer or employee data.
It finds that handling data and information in accordance with evolving regulations and changing expectations will be critical to having a competitive advantage and fostering customer loyalty. In fact, we believe the mishandling of consumer data could yield damages equal to or even greater than a hack.
Rather than reactive measures, enterprises should proactively create ethical frameworks to guide technology and data use. These frameworks establish a baseline of respect and security for customers, minimizing consumer harm. Customer privacy doesn’t compromise business goals.
I encourage manufacturers to consider the following to keep data compliant, secure, ethical, and productive, while still working toward objectives:
To adequately address privacy, I urge manufacturers to think differently about data. Specifically, they should prioritize well-thought-out governance measures that enable informed decision-making regarding data collection, access and usage. By appointing data owners, manufacturers could ensure data is handled responsibly and ethically. Having a strong governance framework holds a particular value for organizations in protecting privacy and user data.