Marketing owns customer data and the risks that come with it | MarTech

Marketing owns customer data and the risks that come with it | MarTech

Today, a marketer is not just someone who understands the customer, the product and the market and can creatively launch campaigns to acquire new customers. To succeed you also need working knowledge of technology. Cookies, pixels, CDPs, DSPs: these terms have been part of the daily marketing life of companies of all sizes for more than a decade.

Underneath all these platforms, tools and digital systems lies a stream of ones and zeros – data – that drives marketing. Even the most creatively driven marketer tired of technical jargon can no longer ignore how that data is collected, stored and used. In the age of AI, understanding the fundamentals is no longer optional. AI runs on data, and marketing increasingly does so too.

The management layer behind your martech stack

Data governance may sound dry, but it is fundamental. It refers to the policies, standards and controls that determine how an organization collects, stores, processes and uses data. Without these guardrails, you can’t legally or responsibly activate the customer data your marketing programs depend on.

Marketers often start with basic information about customers: names, email addresses, phone numbers, and mailing addresses. But there’s a lot more going on beneath the surface. Most websites and martech platforms automatically capture technical identifiers such as IP addresses and device information.

An IP address is considered personally identifiable information, or PII, in many jurisdictions and should be treated accordingly. It’s just one of hundreds of data points that marketing teams collect and process every day. This reality makes a defined data governance strategy essential, not optional. Add platforms like Google Analytics, Meta and LinkedIn and the complexity increases rapidly, especially under privacy regulations such as California’s CCPA and the EU’s GDPR.

At a high level, these frameworks are designed to ensure that organizations do not use customer data in ways that violate privacy rights. The consent banner on your website plays a central role in that process because it defines the categories of data you collect and the purposes for which you collect them.

A clear inventory of data types, stated use cases and storage locations should be documented in your data governance framework and reflected in your privacy policy. Few customers read that document carefully, but by clicking “Accept All” on a consent banner, they agree to the terms you define there.

Dig deeper: What privacy and email laws reveal about today’s compliance risk

Why data governance is marketing’s responsibility

Many marketers assume that data is the property of IT and the law. In principle that is true. But the marketing department owns the customer data it obtains and is ultimately responsible for it. IT and legal support support the process and help ensure martech tools work as intended.

This may sound serious, but marketers need to understand exactly what data is collected, directly or indirectly, where it is stored and how it is used, both by the system that captures it and the technology associated with it. If a data breach or privacy breach occurs involving marketing controls for customer data, responsibility does not lie elsewhere.

IT and legal play a vital role in explaining data management requirements, technical storage and transfer mechanisms, and the legal consequences of non-compliance for both individuals and the organization. From a governance perspective, it makes a difference whether data is stored on a server in the US or in the EU.

Recognizing governance risks is only the first step. Operating consistently within established data governance policies can be much more demanding than many teams expect.

Dig deeper: how brands can turn compliance into a competitive advantage

Marketing cannot afford blind spots in governance

The average marketing department uses dozens, sometimes hundreds, of digital tools, each of which stores and processes some form of customer data. In many organizations, no single person, including IT, can confidently list every platform in use or explain how all associated data is stored, protected and activated. This visibility gap is often the first and most pressing issue that data governance must address.

No organization is immune to customer lists exported to Excel files and stored in shared drives. From an administrative point of view, this is a serious vulnerability. Preventing these scenarios may seem like an IT security feature. Ultimately, it depends on the people using the data and their understanding of the boundaries they cannot cross. In most cases that means marketing.

Deployment in highly regulated sectors such as healthcare and banking is increasing. Seemingly routine actions, such as emailing a list of event participants without proper precautions, can have significant consequences. Therefore, every member of the marketing team must have a basic level of data literacy and a clear understanding of applicable governance policies, before a preventable error becomes a serious problem.

Dig deeper: Privacy is the new currency in digital marketing

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Contributing authors are invited to create content for MarTech and are chosen for their expertise and contribution to the martech community. Our contributors work under the supervision of the editors and contributions are checked for quality and relevance to our readers. MarTech is owned by Semrush. The contributor was not asked to make any direct or indirect mentions of it Semrush. The opinions they express are their own.

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