CDR can help build brand trust

Consumer Data Right (CDR) offers new ways for brands to engage and build trust with one of the wealthiest young adult generations in recent history, according to open data intermediary Adatree.

As the first generation born into the era of instant connectivity, Gen Z boasts equal parts savviness and scepticism when it comes to technology, marketing ploys and promises of privacy.

“Gen Z might have cash to splash, but if business wants a piece of that pie they’ll need to go the extra mile to earn their trust. Privacy and security hold as much weight as ethical business practices for this clever generation. They know a false claim when they see one and they don’t give second chances. So if you want to engage Gen Z, best-in-class data handling is a good place to start. And CDR is Australia’s best option for consumer-dictated data handling,” said Jill Berry, CEO of Adatree.

Private and pedantic about security

While Baby Boomers are looking for their login details, Gen Z are focused on the companies that hold their data — scrutinising how it is shared, stored and sold. A report from Paramount Insights, titled Youth Decoded shows that 82% of the Gen Z cohort worry about the data that is collected about them, though they do understand that sharing data gives them access to a better product or service. Two-thirds (64%) believe it’s fine for companies to collected data, as long as they are transparent about why and how that information will be used.

“Gen Z represents a huge generational shift in consumer identity and customer behaviour. The young adults of today are no longer passive participants in the transference of data. They want to know why certain data points are required, what exactly companies are going to do with the information they share, where and how it will be stored and who will have access to it,” Berry said.

Quality (and convenience) is king

As digital natives, Gen Z have been bombarded by marketing on digital platforms and social feeds from day one. They are desensitised to brand marketing and largely influenced by brand values and the ease-of-use of a product or service. However, a lasting brand connection relies on quality.

“Gen Z, and to a lesser extent their Millennial cohort, have witnessed rapid innovation unlike any generation before them and are regularly thinking “it shouldn’t be this difficult”. They have integrated technology seamlessly into their lives so they know what intuitive product design looks like and they’re savvy enough to know how to find it,” Berry said.

Talking a big game in marketing outputs without delivering legitimate innovation can irrevocably stifle a business’s efforts to win Gen Z spend. CDR however provides a valid, highly regulated solution to this challenge as well as enabling never-before-seen innovations.

Trust or bust

Gen Z is the largest generation ever, currently representing around 20% of the Australian population, according to McCrindle. Rebuilding trust with these tech native consumers is a difficult — if not impossible — task, which creates a critical risk for organisations looking to capture a piece of the Gen Z pie. Businesses hoping to engage with the Dot Com Gen must change current approaches to the collection, storage and sharing of data, or risk losing trust.

“After witnessing seemingly endless data breaches in recent years, any remaining notion of boosting ‘brand trust’ is quickly dwindling. Despite a deep-seated regard for privacy and a willingness to walk away from bad user experience, Gen Z will spend their dollars on products they trust and perceive as authentic,” Berry said.

CDR not only offers a powerful new way for businesses to remove the risk of data breaches, it also offers transparency, innovation and next-gen product design to solve some of the frustrations Gen Z consumers experience on a daily basis.

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