As digitalization accelerates, customer consumption behavior changes, and retailers are also required to restructure their marketing strategies. In the future, it will be necessary to switch to a method that creates a new personalized customer experience by utilizing personal data collected in both real stores and EC regardless of whether it is on or off. Customers are becoming more interested in personal data, but many want to provide it if it provides information that is truly useful for shopping and experiences from retail stores, sites, and apps. Of course, personal information must be strictly protected. In fact, as seen in the GDPR in Europe and the CCPA in California, the trend is to strengthen the protection of personal information around the world. In Japan, the revised Personal Information Protection Law came into effect in April of this year, and a new definition of “personal information” related to cookies was established and included in the regulations. Against this background, how should retailers face and utilize personal information?
To Noriyuki Imai of LiveRamp Japan, which provides a solution to generate a secure integrated ID from all personal data owned by a company, and Daisuke Nakamichi of Priv Tech, which provides a CMP (consent management platform) that complies with the Personal Information Protection Law. I heard the story.
* GDPR (General Data Protection Regulation): EU General Data Protection Regulation. Enforced in May 2018 as a new personal information protection rule in the EU.
* CCPA (California Consumer Privacy Act): The Consumer Privacy Act that came into effect in January 2020 in California, USA.
――What kind of services does the platform provided by LiveRamp provide?
ImaiLive Ramp was founded in the United States in 2011. Providing a solution to convert to a unique ID “RampID” based on personal information, “LiveRamp Safe Haven (hereinafter, LSH)”, a platform that links data around that RampID, and to be used in digital marketing We are developing “ATS (Authenticated Traffic Solution)”, an authentication traffic solution that builds an ecosystem. Some retailers have customer data in real stores, e-commerce, sales promotion departments, etc., but they are managed in pieces and are not integrated, so they are used for data analysis for customer marketing. In many cases, it is difficult to do. We provide a service that converts personal data accumulated in each department into a unique ID, and support secure and integrated data construction using this ID. In the retail industry, Carrefour in France is the customer, and by integrating the personal data possessed by each department, we deepen the understanding of individual insights and improve the effectiveness of marketing utilizing customer data.
[Profile of Noriyuki Imai, Live Ramp Japan Co., Ltd.]
――What is Priv Tech, which was founded by launching Privacy Tech, offering to customers?
Middle way I have experienced the launch of advertising platforms and DMPs at Softbank and Yahoo. What I experienced there was the immaturity of privacy protection. To be clear, Japan has a sense of crisis that it can be said to be a developing country that protects privacy. The revised Personal Information Protection Law has been enforced and penalties have been strengthened. However, few companies can understand the contents. With that in mind for a long time, we initially started the privacy tech business under the umbrella of Vector, which is listed on the TSE prime market, and then became the current system as Priv Tech at MBO. CMP’s “Trust 360” is provided, and we are also developing privacy regulation compliant consulting.
[Profile of Daisuke Nakamichi, Priv Tech Co., Ltd.]
–In the retail industry, we are accelerating the creation of new customer experiences using personal data by creating many touch points through digital utilization. On the other hand, I’m afraid of personal information leakage, and I feel that I’m only using “defensive” data instead of “offensive” data, but what about the actual situation?
ImaiThe retail business holds a lot of personal data such as point cards, membership cards, and customer information registered in EC if it is a real store. Although various information is collected, it is not possible to perform strategic data analysis because it is held separately for each department. I often hear that offline data cannot be used online because the departments that manage it are different. For example, in the case of Carrefour, we have made it possible to utilize “offensive” data by integrating the data divided into 18 departments into one ID platform. The revised Personal Information Protection Law has just come into effect in Japan, and although it may be in the preparatory stage, I think it is important to start by integrating the data that is scattered and held.
Middle wayIn the case of Japan, I feel that not only retailers but also large companies and SMEs are lagging behind in responding to the guidelines set by the Personal Information Protection Commission. In the past, the fine for violations was as small as 300,000 yen or less, but from April this year, the fine for companies has been severely punished to 100 million yen or less. The definition of “personal information” related to cookies has been newly established and included in the regulations, but the understanding of it and the guidelines have not yet progressed. In addition, the current situation is that the awareness and understanding of advertising agencies has not deepened, as there are still many proposals that violate the law. Some agencies are embarking on data utilization, but I feel that understanding of laws and regulations is a barrier.
ImaiAdvertising agencies are often advertising professionals, not data professionals. In the case of Carrefour, we have organized an in-house agency to use the data.
――What is the background behind the partnership between LiveRamp and Priv Tech and what are the customer benefits of this?
ImaiE-mail addresses accumulated in each department are converted to a unique ID called RampID on the LSH platform. This RampID can integrate data even if there are multiple IDs for which attribute information is not available, enabling analysis according to various attributes. Such data can be connected not only to the company but also to the data of the manufacturer through Safe Haven in the retail industry and can be jointly promoted. More effective segmentation will enable us to provide useful information to our customers, allowing retailers, manufacturers and customers to build win-win-win relationships.
ImaiWith the increasing adoption of digital technology, the number of legal and regulatory consultations has increased significantly. Failure to comply and communicate with customers increases the risk of being abandoned by customers as a result. Now that the revised Personal Information Protection Law came into effect in April, I think we are at a turning point, including how to utilize personal data for “offensive” marketing, including the creation of a system for it. ..