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Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
Bdw bryan sep 20-2012
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Bdw bryan sep 20-2012

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Presentation to Big Data World - Europe in London Sep 20 2012. "How to generate an ROI through a positive approach to data privacy".

Presentation to Big Data World - Europe in London Sep 20 2012. "How to generate an ROI through a positive approach to data privacy".

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  • 1. How to generate an ROI through a positive approach to data privacy
  • 2. In general, a business case . . . • Translates issues into economic terms • Justifies and prioritizes effort forward • Evaluates impacts in hindsight For data privacy, the business case sounds . . . “What will it take?” “It depends.” “Worst case?” “You’re going to jail.”
  • 3. 1. Itemize risks For data privacy, this approach yields subjective, extreme and2. For each risk, identify the impacts sometimes threatening results.3. For each impact, estimate: Economic impact (Ie) • Not credible Probability of Risk (Rp) • What about next yearROI = ∑ Risks ∑ Impacts (Rp x Ie) Cost to Prevent4. Add, to taste . . . PV of Risks PV of Costs Cost of Capital Tax Impact Current – Future Insurance
  • 4. Cost & Risk driven Opportunity & value driven No differentiation Competitive ground Justified a priori Measured impacts“Do” or “Do Not” decision “to what extent” Zero-Lose game Zero-Win game CRM For privacy, recognize Brand value contributions Loyalty Control
  • 5. Privacy practices ARE interactionsCustomer integrated communicating policyRelationship interactions Cost Value recording preferencesManagement preferences observing practices objectives So: • Apply CRM valuation to Privacy Customer Satisfaction • Involve/Obligate MarketingBasis for ROI Revenue / Customer • Communicate impacts Retention Lifetime Value (LCV) A/B testingMeasure by Cross-process impact Anecdotal tracking
  • 6. Brands have measurable value also called Brand Equity, reflected in premium• P/E, or market capitalization in excess of earnings valuation• Price, or Value/Sales compared to generics or competitors• Intangible Asset (Goodwill) applied in finance and negotiating power “Trust” efforts can be valued like those of marketing campaigns Reach – population who experience privacy messagingExpect terms Frequency – how often privacy is expressed (with other messages) Impact – ad concept of message importance  Talk to your advertising “Agency of Record”  Get subjective, authoritative impact value  Check out brand valuation methods from: Institute of Practitioners in Advertising (IPA) International Financial Reporting Standards (IFRS)
  • 7. A loyalty program translatesLoyalty & customer registration programs “Do you want privacy?” into • Acquire more customers “How do you want info?” • Retain them longer • In sell, cross sell, up sell • Change privacy to “preferences”All of these are measured! • Use loyalty to lift privacy “frequency” Direct Marketing Redemptions and other activity • Coordinate measurement method Customer serviceTo Loyalty, privacy means “opt-out”But “My Account” also • Incentivize engagement • Offers multiple preferences • Returns data to customer
  • 8. Usually refers to public → board → organization because it’s their money.In big data, we customer → information because it’s their data. Governance is measured by asking & inspecting.Customer care, service and sale events can embed privacy messages• Including it in greetings, confirming identity and script flow• Reiterating policy, soliciting confirmation• Monitoring satisfaction by process (expect varying impact)  Satisfaction is measureable  Transparent companies disclose CSI Analyst community premium Evidence of Consumer Protection  Like all measures, it trends, translates to financials
  • 9. “Positive” cases depend on other business functions • Reach outside legal, compliance, IT • Learn partnership, collaborative sponsoring • Address: what’s in it for them?“Positive“ includes measuring outcomes • Even/especially when they miss expectations • Tracking needs to be baked in to process & tech solutions • Continually improving measurement methods Michael Bryan michael.b.bryan@gmail.com (703) 638-3224

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