Don’t just comply, excel.

Do you allow all permissions an app asks you for? In 2023, answering this with “no” is not unusual. Increased privacy regulations have been welcomed by many users, who now have more control over who gets to know what about them.

Whilst appreciated by consumers, especially post-Cambridge Analytica scandal, these restrictions make the old ways of collecting and using data tricky for mobile marketers. Perhaps that is why, despite GDPR being around for years, many apps are still not compliant with these regulations.

But the measures can benefit app builders as much as they do app users – it’s just about adapting.

What are we working with?

Recent years have seen numerous updates to data protection laws, reflecting a general attitude shift towards wanting more privacy over personal data.

In fact, a McKinsey survey of 1,000 people in North America, found that 87% of respondents would not use a company if they felt concerned about its security processes. A further 71% were prepared to stop using a business if it did not ask for permission before giving away sensitive consumer data.

As a brand, resisting this shift can have negative consequences, like an outdated image, or even financial penalties. At the beginning of 2023, the Irish Data Protection Commission fined Meta for breaching GDPR regulations. Consequently, Facebook and Instagram had to pay €210 million and €180 million, respectively.

So, keeping your app in line is really important for your business and users. It starts with understanding the regulations, then making necessary changes to what data you collect, how you collect it and what you use it for.

Regulations

Since 2018, GDPR has had a huge impact on mobile marketing and data collection. According to the UK’s independent data protection regulator, it meant users were given the following rights:

1. To be informed

2. To have access

3. To rectification

4. To erasure

5. To restrict processing

6. To data portability

7. To object

8. To automate decision-making and profiling.

As a result, consent for unspecified data collection can no longer be assumed or gained by default. Instead, users have to be informed of what data is collected, why, how it’s stored and processed, and then given the option to opt out.

They now have far more control over their personal information, from the start to the end of their life cycle with an app.

App Stores

Both the Apple App Store and Google Play Store have established disclosure policies for apps wanting to list on their stores.

For Apple, this means identifying all data the app collects, unless it falls under optional data. Data that is not used for tracking, third-party advertising, given by informed consent or infrequently asked for counts as optional. They say that this app store label is for users’ understanding of what happens to their data.

On the Google Play Store, an app should have a privacy policy on its store listing, again for user transparency. The policy should inform consumers about how the app collects, uses and shares data. Apps asking for sensitive data require an added link to a privacy policy, in-app and on the store listing.

As a result, apps are disclosing what kind of data they collect. For some, this is a great deal of data, and for others it is only the minimum needed. Comparing similar apps, WhatsApp and Signal, we can see a stark difference in the data they ask for and how it is used.

Data transparency in store listings means that users know exactly what they are signing up for, whether that’s a little or a lot.

The impact

Given the option to deny apps their identifying factors, like location or IP address, many users are choosing to take it. This results in less marketable users and less (automatically collected) data for developers.

Now, the ability to run targeted campaigns is greatly reduced for mobile marketers. They also have less detailed visibility across campaign distribution.

As a result of fewer marketable users, the data for email opens and cross-app sharing, amongst other aspects, is impacted. Without tracking enabled, real user email opens can be outnumbered by machine opens, skewing the numbers and providing inaccurate data.

By declining in-app messages like, “allow this app to share data with other apps?”, consumers also reduce the cross-app sharing of data and, consequently, the amount of third-party data available.

Adapting your mobile marketing

Although user data isn’t as readily available, it’s not gone entirely. Instead, the emphasis has shifted from third- to first-party data – which apps can get a lot of during the onboarding process and permissions.

Asking for these can make an app appear far more transparent to its users, and can be a great opportunity to create optimizations based on the most relevant data, improving the user experience.

Privacy regulations can lead to brands producing a stronger product, whilst respecting the preferences of their users. There are a few factors to consider when adapting to a privacy-first world, including acceptance and creativity.

Accept the change

First and foremost, to stay with the times you have to accept that they are changing. This means looking into, and understanding, how the regulations impact your use of data. Are you part of the minority who are complying with them, or the majority who aren’t?

By adopting their attitudes towards privacy, you can align yourself with your consumers and thus appeal to them more. Abiding by the regulations can lead to healthy customer retention, as you become a brand that reflects that wants of its users.

Refusing change can also make your brand look outdated and less relevant than its competitors who are already adapting.

Be creative

Whilst the regulations might initially seem restrictive, there are ways to make your available resources work harder and create results that even surpass those prior. Here, creativity is key.

Start with creative problem-solving. Refine your metrics and find the ones that are integral to your app’s user experience. Then, you can set out transparent and informative ways of asking for these specifically. Thus, instead of deploying a too-broad data-fishing net, you focus on what you really need.

Next is creative use of data, using the first-party data you’ve collected to create effective personalization pathways for each user. This includes building a profile, developing a relationship, and offering value in transactions.

Getting creative with the data you have can eliminate the need for third-party sources and provide scope for product improvements.

Generating value

Retention depends on the value of an app. Privacy regulations challenge app developers to build apps with better user experiences and, in turn, more value – resulting in higher customer retention rates.

One source of value we’ve been discussing is how you collect and use personal data. As demonstrated by the McKinsey study, users desire transparency and avoid apps that don’t feel secure, so clarity and protection are key.

Value also comes from putting this information to good use. With personalization, you can enhance your app’s usability, keeping users engaged and coming back because it has offerings that are relevant to them.

A good thing

Overall, adapting to a privacy-first world can be hugely beneficial, and in ways that might not have seemed initially obvious.

Data-use transparency makes a brand appear trustworthy and allows users to feel in control of their privacy. This is a refreshing change for consumers, and one that is increasingly rare in our digital age. It also motivates innovation from app developers, pushing them to create improved products.

Not only do users benefit from this, but so do brands. Happy users means higher customer retention rates and an overall increase in app use. So it really is a win-win!

Want help making your app work in this privacy-first world? Reach out to us via our website or email, hello@consultmyapp.com.