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Automotive sales crashing into data?Driving customer engagement & growth in a

privacy minefieldKimon Zorbas

Brussels, 5 June 2014IgnitionOne Summit

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Privacy & control = growth?Addressing privacy is more than compliance – it can foster growth

Source:McKinsey Quarterly Insights & Publications, March 2014,“Views from the front lines of the data analytics revolution”

“Privacy concerns must be addressed—and giving consumers control can help… Our analytics leaders were unanimous in their view that placing more control of information in the hands of consumers, along with building their trust, is the right path forward.”

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Privacy has business relevanceSource:BCG Global Consumer Sentiment Survey 2013

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Let’s look at some challenges: Regulation

• EU (actually EEA) is a patchwork of privacy laws– (31 national laws, only minimum overlap)

• Privacy laws cause confusion in sector (e.g. cookies)– CMO‘s reality resembles Clashing Rocks: associations downplay risks,

lawyers overplay - in-house lawyers do often the same

• One size does not fit all– A car purchase does not equal a … Zalando shoes purchase– Data retention not only 6 weeks (industry standard)

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CMO’s privacy challenges

• Various laws – 31 variations of:– E-Privacy Directive about cookies– Data Protection Directive (currently reviewed as a regulation = 1 law for all 31

EU & EEA jurisdictions)

• Various technologies & limitations:– CRM; First party data (your data); Third party data– Social, display, search, OBA, RTB, analytics, …– Cookies & deletion; Google AdID; …

• Self-regulation – e.g. IgnitionOne:– OBA – DAA, EDAA (European Digital and Interactive Advertising Alliance)– DTSG (prevents your ad appearing on “dodgy sites”)

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What a lawyer might not tell you: you can do simpler

• You have to comply with laws, including privacy (and let’s face it, it’s less of a hassle than Euro 6)– First party data– Third party data

• But automotive is different:– A car buyer rarely will complain if you ask for his personal data– He is interested in your car– It’s a long decision before buying a new car– Once you have triggered his interest, privacy worries should become secondary if not

tertiary: prospect will give you his data voluntarily and you can mitigate any legal compliance issues

– One he bought a car he’s connected to assistance programmes (full access to personal data) – he even wants this (why opting out?)

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And you can do smarter

• Privacy compliance & business strategy can actually overlap:– If you have one supplier it simplifies things for privacy (less time

wasted managing, less incoherence, smaller liability risk)– On business, having one supplier for various data sources allows

coherent approach (your CRM, analytics, first party data and third party data)

• My best and cheapest advice:– Make sure you own “your” data – why share with someone else who

will make money with your competitors?

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What the lawyer doesn’t tell you: you can do even smarter

• You can deal with compliance issues (right supplier, adequate legal procedure)

• But why not taking it to the next level?• Hand over (some) control to the user – control you lost anyway with the

internet• Allow users to not only review their data (your legal obligation anyway) but

enrich their data – build a user engagement model• Google “Right-to-be-forgotten”-case has shown: people want to exercise

their rights and the less they get the more the want it• If you build an engagement platform, you can gain new insights• Transform exchange of data into a give-and-take

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Kimon Zorbas, Partner

kimon@dbcg.eu@kimon_zorbas