On May 25, 2018, the EU General Data Protection Regulation (GDPR) was officially enforced. Approved by the EU Parliament on April 14, 2016, this regulation extends outside of Europe and requires compliance by any business, from solo entrepreneurs to Fortune 500 corporations, that operate in EU member states and serve EU members in any capacity, whether directly or as a third party. In short, the GDPR exists to ensure data privacy is upheld at the highest level, requiring straightforward consent approval measures to ensure users and web visitors are fully aware of how their data is being processed.
This global data regulation is a major step forward in the realm of human data analytics. Now, information gathered through these mechanisms isn’t just a set of numbers or a trending pattern. Rather, companies are recognizing that this valuable information is humanistic in nature and as such, requires a different analytical approach. Yet, while the way we gather it, store it and use it has changed for the better, human data is still critical to helping fuel a more customer-conscious economy, and here is why.
Human Data, Explained
When we first think of human data, likely one of the images that comes to mind is that of wearable technology, an industry that will see annual shipments (currently at $125.5 million) double by 2021. From smartwatches that track our heart rate and incoming calls to UV sensor patches, there are many ways in which we can use technology to monitor personal progress. We may also think of human data in terms of our identity. For instance, our unique fingerprint is the only one that unlocks our smartphone. Our password gets us into our laptop.
While that information is rich with insight, it is not the totality of human data. Rather, this focuses instead on our personalities, goals, ambitions and preferences. In other words, human data is the encapsulation of the more nuanced elements that make up our being, beyond the hard and fast formulas that define our sleep cycles, diet and the number of steps we take per day. It cannot be defined by numbers, put into neat categories or formed into structured sets.
What do we look for when engaging with a retailer? What makes us cringe and what delights us? These are the questions that human data analysts seek to understand and answer and finding them can be an intricate process, with consent and transparency taking center stage. To date, human data is captured primarily through online surveys or via social media interactions, though these findings are often so ambiguous they render Big Data incapable of analyzation.
The Value to Business Leaders Worldwide
Gone are the days when foot traffic into a brick-and-mortar store was the only way to attract new visitors to your brand. Now, almost 80% of shoppers buy their goods online, meaning that the most competitive brands are those that have a dynamic and user-friendly web presence. With digitization enabling any company to achieve an instant worldwide reach, the potential for exposure and engagement is now amplified beyond anyone’s expectation just a decade ago. As such, it stands to reason that business leaders would want to tap into human data to better understand their target audience.
For years, however, this data was captured in terms of numerical patterns, easily trackable by analyzing simple identifiers. Which products sold the best last month? Which social media posts received the most likes and comments? How much time are web visitors spending on our product pages and what is our average bounce rate? What devices are people using to access our website and during what time of day are they logging on?
Mining this data might have taken a while, but it was a manageable task that usually culminated with data analysts categorizing customers into categories based on geography, device preference, age, background and more. From there, the next step was to engage Big Data analytics to better understand customer buying patterns and predict the best ways for marketers to better engage them.
The Drawbacks to Relying Solely on Identifier Data
Even if an organization is able to find and capture an infinite amount of number-based data concerning its audience, turning those patterns into actionable insights requires sophisticated backend systems that many simply cannot afford or manage. While a data hub can revolutionize the way organizational and application data are married, it is not an inexpensive investment and, especially for solopreneurs or Small-to-Medium (SMB) sized businesses, too large-scale of a task to take on. Yet, relying on cost-effective Customer Relationship Management (CRM) software platforms only can leave analysts coming up short, missing out on key interactions that may have occured across other systems.
Perhaps more importantly, however, is the fact that in recent years, we’ve become so hinged to our technology that it has become impossible to separate human data from the flesh and bone people behind it. We use the same device to order take-out, pay our bills, read the news, schedule a meeting, buy a new pair of shoes, connect with friends and listen to music. In essence, our devices and the tools we use to operate them are as much a part of our makeup and reveal just as much about who we are as our fingerprint. Business leaders cannot rely on identifier data alone in their search to fully understand who their customers are. They can’t be measured solely by how many times per day they click on your link or which part of the country they’re accessing your site from. They’re not just a number. Their data has transformed into a living, breathing part of their overall identity and should be treated as such.
How GDPR Fits In Moving Forward
At its core, the GDPR measures are a step forward in helping businesses treat human data with just as much respect as they would treat humans themselves. By complying with the regulation, business leaders are signaling to everyone that they value their customer and are seeking to get a 360-degree view of him or her. Furthermore, they are interested in using this data not to simply punch some numbers into a machine, but to better discern how to understand, attract, advertise to and retain their core audience. With these insights captured, they are able to leverage machine learning and Artificial Intelligence (AI) resources to engage and involve customers moving forward.
Yet, it isn’t only about the customers themselves. Human data comprises everyone who has access to a device, from C-suite leaders to business partners, employees, subcontractors and more. After all, technology is only possible if someone is driving it behind the scenes. Businesses who understand this and take measures to more carefully and diligently handle this information are those who will succeed going forward, driven by a more conscious and comprehensive view of everyone around them.