Privacy and Big Data Overload!
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Dennis Dayman Chief Privacy and Security Officer, Return Path Len Shneyder Director of Industry Relations, Message Systems
Privacy & Big Data Overload!
November 4, 2014
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A link to the webinar replay will be provided via email following the presentation
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Participate in Today’s Discussion… Tweet #dataprivacy
Follow us on Twitter @messagesystems @LenShneyder @ddayman @returnpath
Follow us on Linkedin Message Systems Return Path
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How Much Data is too Much Data?
Dennis Dayman, CIPP-US, CIPP-IT Chief Privacy and Security Officer Tuesday, November 4
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• What are the issues today? • What responsibilities marketers have in today’s expanding ‘big data universe’
• How to apply your data within the confines of compliance law
• Tips for integrating data across channels and platforms • The principles of ‘Privacy by Design’
Agenda
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They say you can never have too much of a good thing. In my view data is a good thing – but can you have too much of it?
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IBM found that more than 70% of CMOs are put off from doing anything with their data due to data overload
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Is there such thing as too much data?
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2.5 quintillion bytes of data
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How deep down the rabbit hole do we go?
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How deep down the rabbit hole do we go?
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Privacy in Advertising and Marketing
• According to a report from Advertising Standards Canada: – 89% agreed with the statement, “people share far too much
personal information online these days;;” – 72% responded that they were worried about the erosion of
personal privacy; – 73% said they were aware that businesses were tracking people's
activities on the Web in order to understand their interests.
• Give consumers choice, control on personal data, advertisers
http://www.theglobeandmail.com/report-on-business/give-consumers-choice-control-on-personal-data-advertisers-urged/article5461959/
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Email marketers hold the keys to marketing’s future...
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The wrong ways to find customers
● Rent lists ● Trades ● Auto-enrollment ● Negative option/pre-checked boxes ● Data appends
These tactics are all still in use today, and not one of them a consumer-friendly way to begin a relationship
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Adap%ng to one big issue define marke%ng’s winners and losers:
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1 Consumer control
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Consumers are controlling the conversation
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Consumers drive the legislative agenda
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The CASL Panic
of 2014
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• Canada’s Anti-Spam Legislation – Establishes rules for sending commercial electronic messages
(CEMs) – Passed in 2010 – Takes Effect July 1, 2014
What is CASL?
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Worldly comparisons
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Differences in Privacy
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• Not a fundamental human right
• Patchwork of industry, local, state and federal laws.
• Typically an opt-out scheme with a dash of opt-in and notice.
• Privacy is a process of need by sector
• Fundamental human right • Privacy law, not an email
law • Opt-in in model • E.U. Data Protection
Directive • Member nations are
compelled to enact data protection laws and create supervisory bodies.
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Regulatory Landscape
© 2011. All rights reserved. Online Trust Alliance (OTA) Slide 22
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Regulatory Landscape
© 2011. All rights reserved. Online Trust Alliance (OTA) Slide 23
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Consumers drive technological gatekeeping
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1 Conversations in 7 terminated...and not by ISPs
Source: Return Path, 2014 Inbox Placement Benchmark Report
86%
9% 5%
Inbox
Missing
Spam
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Start small and think about the customer point and needs
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Look for nuggets of gold in your data and delete the rest.
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Content and data can still be king, but its relevancy and targeting that matters
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What is Privacy?
• Freedom of choice • Personal control • Informational self-determination
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These can be part of a customers personae.
1. Names 2. Postal Addresses 3. Telephone numbers 4. Social Security Numbers 5. Account Numbers 6. Driver Licenses Numbers 7. Financial Account Numbers – Credit Cards, Checking 8. Logins and Passwords 9. Habits of any sort or Personal preferences 10. Email addresses
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Where do you get this information typically?
1. Webinars. Attendee information 2. Fishbowls. Business cards 3. Website forms Email capture 4. Tracking mechanism. Website cookies 5. Social media. LIKES! 6. Mobile device tracking. Geo-location 7. Buying of data. Email list buying 8. Email campaigns tracking. Open and clicks 9. Online surveys 10. Preference centre’s 11. Customer accounting 12. ETC
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Privacy issues today
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Class Action Lawsuits
Brand Damage
Data Breaches
Loss of Market Share
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Privacy by Design (PbD)
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What is PbD?
• Privacy by Design was developed by Ontario’s Information and Privacy Commissioner, Dr. Ann Cavoukian, in the 1990s, as a response to the growing threats to online privacy that were beginning to emerge at that time.
• It represents a significant shift from traditional approaches to protecting privacy, which focus on setting out minimum standards for information management practices, and providing remedies for privacy breaches, after-the-fact
• Past privacy approaches are like locking the stable door after the horse has bolted.
• PbD requires that organizations think about privacy proactively, from the initial development phases of systems and processes
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Companies and people are paying attention
1. Since 1995 1. Profound shift in privacy management in the world 2. Many companies are creating Chief Privacy Officer
(CPO) positions 3. Privacy has evolved over the last several years to
be defined in large part by respect for what consumers expect regarding the treatment of their personal sphere
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Breaking with Tradition: The Zero-Sum Paradigm
1. Win-Lose 2. False Dichotomies 3. Unnecessary Trade-Offs
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A New Perspective on Privacy: The Positive-Sum Paradigm
1. Win-Win
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What does that look like for you?
Email – Opt-In forms – Sending a welcome email – Allowing for preference centre
• Opt-out • Change of information • Deletion of information or account
– Collecting only necessary data – Not selling that data – Removing data when no longer in use – Secure databases and systems
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Privacy by Design: Overview
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Principle One
Embed privacy right from the onset
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Principle Two
Privacy as the Default Setting
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Principle Three
Privacy Embedded into Design
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Principle Four
Positive-Sum NOT Zero-Sum
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Principle Five
• End-to-End Security
• Full Lifecycle Protection
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Principle Six
• Visibility
• Transparency
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Principle Seven
• Respect for users privacy
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In review
• Proactive not Reactive: Preventative, not Remedial;
• Privacy as the Default setting;
• Privacy Embedded into Design;
• Full Functionality: Positive-Sum, not Zero-Sum;
• End-to-End Security: Full Lifecycle Protection;
• Visibility and Transparency: Keep it Open;
• Respect for User Privacy: • Keep it User-Centric.
http://www.ipc.on.ca/images/Resources/7foundationalprinciples.pdf
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Permission based Marketing
• Essential premise: persuade consumers to volunteer their attention;
• Predicated on Consent: make consumers active recipients of marketing information;
• Puts control in the hands of consumers; • Just because you somehow get my email address doesn’t mean you have permission.”
— Seth Godin, Permission-Based Marketing, 2001
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Payoff
• The ‘payoff’ to privacy- respecting organizations – Enduring competitive advantage. In a world of increasingly
savvy and inter- connected customers – There is a strong competitive advantage for businesses to invest
in good data privacy and security practices
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The Bottom Line
• Privacy should be viewed as a business issue, not a compliance issue
• Think strategically and transform privacy into a competitive business advantage
• A significant portion of the population is becoming concerned about identity theft, and it is influencing their purchasing decisions – Loyal repeat customers – Consumer confidence and trust
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Class Action Lawsuits
Brand Damage
Data Breaches
Loss of Market Share
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The keys to marketing’s future...
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Make sure you are monitoring and maintaining...
List Hygien
e Complaint
s
IP Permanenc
e Engag
ement
Message Qua
lity
Infrastructu
re
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Thank You! Dennis Dayman Twitter: ddayman returnpath.com
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CONFIDENTIAL
With Great Data Come Great Needs
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The Law is Only The Beginning
“We are very conservative about compliance with all privacy laws. But even if you’re following the law, you can do things where people get queasy.” -NY Times ‘How companies learn your secrets’
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Delicate Balancing Act
Consumer Business
ROI
Brand Awareness
Market Differentiation
Value
Privacy
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Privacy is a constant ongoing process
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Privacy starts with opt-in and exists at every level
Opt In • Although the law
(in the US) doesn’t require double opt in, it is something to consider over the long haul
Preferences • Use Customer
Preferences to send based on preferred contact methods and channels
Segmentation • Put customer
prefs and behaviors into action by sending the right message to the right person
Delivery • Respect ISP
AUPs and TOS, applied Adaptive Email Network that incorporates over 2k rules
Analysis • Look at ALL the
metrics and keep track of who has access to sensitive data
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SMTP UTF8
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Privacy by Instrumentation
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TLS Encryption to Protect Customer Data
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Marketing at the speed of light
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Thank you very much!
Len Shneyder Director of Industry Relations
Message Systems @LenShneyder
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Thank you!
Follow us on Twitter: • @messagesystems
Follow us on Linkedin: • Message Systems
Visit Us • www.messagesystems.com
Contact Us • [email protected]