Although retailers are becoming savvier about using social
media, they may be wary about Facebook after the revelation that Cambridge
Analytica may have collected personal information from as
many as 87 million Facebook users without permission.
The scandal has brought a lot of negative attention to
Facebook, arming those who were already critical of the platform and forcing
Founder and CEO Mark Zuckerberg to be grilled by Congress.
The RTP team
weighs in on whether Facebook marketing is still a good choice for retailers,
and how retailers can protect themselves (and consumers) while taking advantage
of Facebook’s potential.
Debbie Hauss,
Editor-in-Chief: I agree with Scott Galloway that Mark Zuckerberg has not
stepped up when it has come to protecting Facebook users’ personal data,
allowing enterprises with political agendas to infiltrate the platform and take
advantage of unknowing consumers. I do think, though, that if the Facebook
situation had not elevated to the point where Russia was involved in
influencing an American Presidential election, we might not be having this
conversation today. We’ve seen a lot of bad behavior on social channels,
including the Logan Paul Suicide
Video that aired on YouTube. And businesses have just started
reaping the benefits of retargeting consumers on Facebook and other channels
based on their previous behaviors and predicted preferences. Even if Facebook
suffers a deadly fate after this latest scandal, other social networks will
pick up where it left off. As with many other situations in our retail world
these days, consumers must be on the defensive; and businesses must be careful
about crossing the “creepy” line.
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Adam Blair, Executive
Editor: I’m all in favor of Facebook and other social networks being held
to account for irresponsible data usage and lax protections against trolls
spreading fake news. (Although it seems just a tad hypocritical to criticize a
social network on which people spill the most intimate details of their lives,
complete with photos and videos.) Retailers and brands that want to use
Facebook — and given its reach, many will certainly continue to do so — will
need to ask these networks the tough questions about exactly where the data
they’re using to target customers has come from. Also, they will need to
observe the Golden Rule about personalization, as articulated by Forrester’s Brendan Witcher: Be overt about
the reasons why you are collecting data: We would love to know your
dress size because if you tell us, we’ll make sure to show you products that
fit you perfectly. But be covert when you show the
customer the best dress for them.
Marie Griffin,
Managing Editor: Although the way Facebook collects, uses and shares its
user data is currently in the crosshairs, the underlying issue of consumer data
usage is critical to all online advertisers and retailers. U.S. consumers are
conflicted about how their personal data should be used, which means more
debacles like Cambridge Analytica could tip them toward demanding limitations
on its use, as we are seeing with Europe’s General Data Protection Regulation (GDPR). In one survey, less than half of respondents were willing to
exchange personal data for a benefit — 43% for discounts
and/or deals, 39% for faster resolution to a problem and 20% for
personalized recommendations — but 28% agreed that “I don’t
like it when companies have my information when I don’t explicitly provide it.”
Those last five words are the key. When a retailer develops trust with
customers by respectfully using their personal data, and by not overusing it or
selling it to third parties, the door is kept open for commerce. But you must
make sure you develop a reputation for respectful data use now, so that you
have customers to access if data rules ever change.
Glenn Taylor, Senior
Editor: Despite the recent outcry against Facebook, its reach extends too
far for retailers not to continue to use the platform to bolster sales and
spread brand awareness. Building out a presence on the platform comes at such a
low cost (at least upon entry) compared to other marketing initiatives that it
can’t really be ignored. Retailers simply have a better chance to connect on a
personal level by understanding the specifics of the customers that either land
on their Facebook pages or click on their ads. Like anything else in this
data-heavy world we live in now, retailers are going to have to explain what
exactly they’re going to use data for in any situation, not just on Facebook. Of
the top 100 retail brands, only 18%
have easily understandable and navigable privacy statements, according to L2.
Going ahead, retailers will have to improve communication on the benefits the
consumer will receive in exchange for the data, as well as build in safeguards
to make sure no one else has access to it.
Klaudia Tirico,
Features Editor: I must agree with Adam in the sense that it is quite
hypocritical for people to question and criticize Facebook for their
irresponsible data usage when it is the channel where everyone and their mother
shares every single thing about themselves. As unfortunate as the Cambridge
Analytica situation is, it’s a mere hiccup for Facebook and the value it brings
for brands and retailers. The use cases speak for themselves: JCPenney used
Facebook dynamic ads to boost sales, which resulted in a 12.2% lift in online purchases and 10.4% lift in online revenue. GameStop leveraged
Facebook’s collection ad format during the holidays and saw a 7.5X increase in incremental return on
ad spend. After all is said and done, the Facebook privacy issue is definitely
a learning opportunity for all and a chance for people to be smarter about
how they collect, leverage and use user/consumer data…and share it!
Bryan Wassel, Associate
Editor: Even if consumers lose trust in Facebook, the growing importance of
social media in retail means companies can’t afford to ignore the platform,
which had over 2.1 billion monthly active users as of Q4 2017.
A survey by Bazaarvoice found that 47% of
brands and retailers say being able to discover and buy products from social
media channels will be more important to shoppers in the next year, and 81% say
that integrating social channels with e-Commerce will be a priority. At the
same time, brands must reassure shoppers that their data is not being
misused. A survey by SAP found that 72% of
shoppers expect retailers to protect their interests, while 66% expect
retailers to be transparent in how they use personal data. Even if Facebook
fails to retain the trust of its users, retailers can show their own
trustworthiness when they reach out to the massive social media audience.
