Home News Should marketers be free to use customer data? Charles Ping gives his thoughts on the Data Debate held by The Marketing Society.

Should marketers be free to use customer data? Charles Ping gives his thoughts on the Data Debate held by The Marketing Society.

29 March 2010

The Marketing Society debate last night on the motion that “Marketers should be free to use any data they wish” gave a surprising win for those against the motion.

I would have ordinarily supposed that responsible marketers - and a Marketing Society event will surely only attract that particular breed – would prefer to use more data not less.

The rationale that only an ignorant or stupid marketer would use any data that led to detriment in the bond of trust between a brand and the consumer seemed to lack enough steam to overpower the fear that life really isn’t like that.

A spirited contribution from journalist Michael Cross identified his fear that we were sleepwalking into a privacy “closedown”. The flip reaction to excessive privacy fears is data stasis – and that could really hinder society. Julian Elliott, whilst nominally speaking against the motion, supported some of Michael Cross’s beliefs when it came to the cost and availability of some key property data sets controlled by the government

One of the key problems with any privacy debate is that the voices of the activists against the wider use of data usually presuppose that marketing is a dark art that seeks to manipulate consumers for its own gains. This naïve argument forgets the basic tenet of business in a free society. A business satisfies a consumer need. If it does it well the result is enduring profit and “sustainable competitive advantage”. If it does it badly – through poor initial market research, weak product development or inadequate delivery then the company will lose money and ultimately disappear.

The UK has strong and well managed legislation and an engaged regulator in the Information Commissioner. Indeed Chris Graham, the Information Commissioner himself, was on the panel last night and emphasised the carrot and stick approach to regulation. At last the government have seen fit to equip our data regulator with a stick big enough to cause real pain if required. Sensible marketers should cheer on April 6th when this comes into force because the good guys can continue to grow whilst the bad guys can be £500,000 poorer if they aren’t careful.

One of the general conclusions, both from the floor and in the bar afterwards, was that marketers should perhaps have the ability to use more data but with an Evelyn Waugh-ish coda of “up to a point”. Alex Marks from Ebay made the very good point that marketers who lose sight of the “value trade” that customers instinctively see in the use of data will tread quickly into very deep and very warm waters.

If you’re going to use data on customers or prospects well then you must be certain that it won’t spook them, It’s presented in a way that offers them a clear and genuine benefit and that it is “proportionate” in the consumers eyes. But that’s how marketers always work, isn’t it?