Marketers 'all mouth no trousers' on consent systems

Marketers talk a good game about the crucial role that consumer preference systems can play in their data-driven strategies, yet only half actually have the technology in place, with the rest missing out on increased engagement, revenue and profits.

So says a new report, “Data Management for Marketers: Breaking Down Consent and Preferences”, carried out by the DMA and OneTrust PreferenceChoice, which reveals awareness and perceived importance of preference management has increased significantly over the past two years.

The technology is now seen as more crucial than ever, with 73% of marketers saying it is important, up from 60% in 2020, while awareness of consent and preference management has increased since the previous edition in 2020, with those marketers personally involved also rising from 60% to 78% in 2022.

Even so, only half of organisations (51%) have a specific consent and/or preference management system in place.

The report shows that of those organisations which have a consent and preference management system, three-fifths (61%) reported an increase in customer database, a similar proportion (55%) saw a rise in engagement rate, sales revenue (54%), conversion rates (47%), and opt-in rates/sign-ups (47%). Some 40% have even found that complaints have decreased; all significantly higher than those without these systems.

Menawhile, marketers estimate that the return on investment on consent and preference management is just over £38:£1. In addition, those with systems in place also report higher customer lifetime value (£57.76) and lower customer acquisition costs (£44.87) compared to those without these key processes (£53.31 and £46.78 respectively).

OneTrust Consent and Preferences product marketing manager Ashlea Cartee said: “More than ever, consumers demand greater control of their data, unlocking an opportunity for organisations to use these moments to address privacy compliance obligations and build trust through transparency, choice, and control.

“Therefore, implementing a reliable consent and preference management solution is imperative and as we see in this report, there can be strong returns on investment.”

DMA director of insight Tim Bond added: “Many organisations are clearly not maximising the value of their most important resource, which must change if they want their marketers to stay competitive, innovative and responsible.

“The benefits are extensive, with many professionals stating that they have higher customer lifetime values and lower customer acquisition costs. There can be no doubt why this is the case, as data management systems help businesses to offer enhanced personalisation and increased transparency; key factors in driving customer loyalty and trust.”