Why Retailers Need Data Competency Before Compliance
In the ever-evolving landscape of data privacy, businesses and marketing leaders are facing significant challenges when it comes to understanding and achieving data compliance. The introduction of new cookie-less addressability solutions and interoperability standards across ID resolution platforms has made it increasingly difficult for retail brand teams to navigate and identify the right path towards data privacy governance and compliance.
After speaking with over 500 business and marketing leaders over the course of six months about their data privacy concerns it has become evident that brands in the digital age today are now not only expected to collect data responsibly but also to be purposeful in how they use that data to engage consumers and drive business success. While interpreting government regulations is complex, it's equally important for organizations to have a clear grasp of their inner working of their data to establish a solid foundation for data compliance.
To better prepare for the future, there's an increased emphasis on data competency which emerges as the critical first step towards achieving data privacy compliance. Data competency goes beyond merely understanding legal jargon; it helps organizational teams focus on asking the right questions, establishing a common language, and assessing data risk. Data competency involves comprehending the organization’s baseline readiness and fitness with its data processes, sharing, and storage within the organization. By prioritizing data competency, companies can build up their data readiness. This allows retailers to be more prepared to address privacy legislations, take better advantage of their marketing tech ecosystem, and establish an edge on competitors.
Within this context, there are four key areas of data competency that retail and e-commerce organizations should consider: governance, talent, media, and leadership.
Those 500 conversations with business leaders also revealed the 40 key questions within these four workflows that create a framework to measure baseline data competency. The questions also help set metrics to track over time as new training and initiatives are put in place to improve the retailer’s data competency. A sampling of those questions include:
- Governance: Does a unified interpretation of policies and practices around how the brand collects, stores, uses and shares data exist in the organization?
- Talent: Does the team share common terminology and competencies around data and empower individuals and teams to engage in ongoing data privacy training and dialogue?
- Media: Is the organization leveraging data to build loyal relationships with consumers, and are marketing teams refreshing measurement frameworks and data metrics included in them?
- Leadership: Is there clear understanding of risk areas and is senior leadership aligned with adjusting as necessary to comply with changing government regulation?
The full assessment provides a comprehensive framework for organizations to better navigate data privacy. The aim of this framework is to simplify the narrative around data and encourage an open dialogue within organizations regardless of seniority or specialty. While data privacy may seem complex, adopting a simplified approach can foster collaboration and create values across the organization.
By evaluating these competencies, organizations can assess their data privacy readiness and fitness, prioritize improvement areas, and move forward with confidence to embrace government regulation rather than allow it to derail their business.
Basil Hatto is senior vice president of product and growth at NP Digital, where he spearheads agile product innovation using data and analytics to identify areas of monetization for Canadian clients.
Basil Hatto currently serves as NP Digital’s Senior Vice President of Product and Growth at NP Digital, where he spearheads agile product innovation using data and analytics to identify areas of monetization for Canadian clients. With over two decades of diverse leadership experience across media, startups, agencies, and tech organizations, Hatto has developed a distinctive approach to growth marketing, leveraging data science to uncover focus areas that fuel upward growth and revenue for Canadian brands. Prior to NP Digital, Hatto held key positions such as VP of Data Science, Audience & Analytics at Postmedia and SVP of Product and Strategy at iProspect.