Only firms which can convince consumers of the personal benefits of being involved in “big data” projects are likely to be successful in turning gigabytes into mega-bucks, according to one data protection expert.
Speaking in response to a recent EU working party paper, Pinsent Masons information law specialist Marc Dautlich reckons firms pursuing big data will have to provide consumers with incentives to allow their data to be re-used.
He also warned that businesses will not be able to rely on previous consent given, as the purpose of the original data collection could be different. Dautlich said: “Organisations which wish to re-use personal data they have collected for direct marketing, behavioural advertising or other profiling in big data projects need to invest some resources in promoting the benefits of these activities to consumers.
“As a result, it will be the businesses that best convey to consumers how they can benefit by permitting the use of their personal information in big data projects that will glean the most insights from those projects.
“Big data offers companies seemingly limitless opportunities to understand more about consumer habits and trends and to make better informed business decisions as a result, but firms risk being left behind if they cannot convince consumers of the benefits of engaging by allowing their data to be used,” he added.
His views echo those of data ‘godfather’ Clive Humby, who has said firms must start from the viewpoint of how the data will benefit the customer; not how it will benefit the business.
He said: “The real challenge is creating value for the customer. If consumers can see the benefit of handing over their data, they are much more likely to welcome it.”
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