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Bdw bryan sep 20-2012

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Michael Bryan
Michael Bryan

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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How to generate an ROI through a positive approach to data privacy
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? Youre going to jail.
1. Itemize risks For data privacy, this approach yields subjective, extreme and 2. 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 year ROI = Risks Impacts (Rp x Ie) Cost to Prevent 4. Add, to taste . . . PV of Risks PV of Costs Cost of Capital Tax Impact Current Future Insurance
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
Privacy practices ARE interactions Customer integrated communicating policy Relationship interactions Cost Value recording preferences Management preferences observing practices objectives So: Apply CRM valuation to Privacy Customer Satisfaction Involve/Obligate Marketing Basis for ROI Revenue / Customer Communicate impacts Retention Lifetime Value (LCV) A/B testing Measure by Cross-process impact Anecdotal tracking
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 messaging Expect 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)
A loyalty program translates Loyalty & 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 service To Loyalty, privacy means opt-out But My Account also Incentivize engagement Offers multiple preferences Returns data to customer
Usually refers to public board organization because its their money. In big data, we customer information because its 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
Positive cases depend on other business functions Reach outside legal, compliance, IT Learn partnership, collaborative sponsoring Address: whats 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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Bdw bryan sep 20-2012

  • 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? Youre going to jail.
  • 3. 1. Itemize risks For data privacy, this approach yields subjective, extreme and 2. 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 year ROI = Risks Impacts (Rp x Ie) Cost to Prevent 4. 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 interactions Customer integrated communicating policy Relationship interactions Cost Value recording preferences Management preferences observing practices objectives So: Apply CRM valuation to Privacy Customer Satisfaction Involve/Obligate Marketing Basis for ROI Revenue / Customer Communicate impacts Retention Lifetime Value (LCV) A/B testing Measure 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 messaging Expect 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 translates Loyalty & 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 service To 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 its their money. In big data, we customer information because its 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: whats 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