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Genetic Data in Marketing: Is this the next frontier?

With the rise of direct-to-consumer genetic testing such as 23andMe and AncestryDNA resulting in the availability of large genetic data sets, we’ve started to see companies engage in marketing activities targeting specific genetic segments (see Aeroméxico’s DNA Discount campaign). On the surface, genetic marketing can appear to be a gold mine for marketers, however, before we dive head-first into this new frontier, what are some of the potential uses and ethical challenges of using genetic data for marketing purposes? In a recent article in the Journal of Marketing, authors Daviet, Nave and Wind explore this topic.

Potential Applications of Genetic Data in Marketing

The first application that jumps to mind is the use of genetic data for segmentation purposes. This can be particularly reliable when genetic data can be easily mapped on to needs, such as a company providing hair-loss prevention products targeting males with a genetic predisposition to pattern baldness. Furthermore, this targeting could begin even before signs of baldness begin.

From there, genetic data can also be used to infer other segments, build profiles for advanced targeting and predict consumer behaviour. While individual genes do not necessarily have significant predictive power on their own, when their aggregate effect is taken into account, the explanatory power increases. Furthermore, as sample size increases, the accuracy of the prediction also increases. Unlike predictive techniques that use past behaviour to predict future behaviour, genetic prediction can be used to identify potential high value customers before a customer even tries a product. For example, a coffee shop could target potential customers based on their genetic propensity to enjoy or metabolise caffeine before they even know that they enjoy or are addicted to coffee. Furthermore, these potential customers could be identified and targeted before they develop a brand preference.

Much like social networks, genetic relationships can be mapped out and the degree of relatedness can be computed, facilitating the targeting of customers who may be “close” to the genetic traits in question. From a practical standpoint, this could enable firms to genetically profile loyal customers and create genetically “close” segments to target. Depending on the predictive accuracy of the genes in question, this method may be less costly and more accurate than other data sources and more traditional segmentation methods such as surveys.

Finally, genetics can also be used by brands to personalize experiences or create a sense of community. In 2018, Spotify and AncestryDNA tested an initiative which allowed users to input their ethnicities based on their DNA test and then generate a playlist with music that reflects their genetic makeup. 23andMe also attempted to create a sense of belonging when it launched the “Root for your Roots” campaign to help US soccer fans select a team to support during the 2018 World Cup. A new feature enabled customers to see with which country in the World Cup they had the strongest genetic connection.

Ethical and Legal Challenges

While genetic data could be used for good – ex. early interventions and disease prevention based on genetic risk and predisposition, it could also open the door to unethical marketing practices – ex. spirits companies targeting potential customers who have a predisposition for substance abuse. As the use of genetic data in marketing is in its infancy, here are some ethical and legal issues to consider

Anonymity and Informed Consent

Except for identical twins, a person’s genetic material is unique and very little of it is required to identify someone. This poses many challenges when attempting to anonymizing data without destroying a large portion of it. Even after anonymization, reidentification is still possible.

While research is subject to ethical guidelines that require explicit informed consent, ethical practices are not standardized. Furthermore, much genetic research is conducted using existing data sets which makes gathering informed consent from each individual a near impossible task. As a result, participants (ex. customers of direct-to-consumer genetic testing services) are often asked up-front to consent to all future research. The argument is that this approach balances participant privacy with the greater public benefit resulting from the research. However, this approach paints the situation with a rather broad brush. Alternate methods such as allowing participants to opt-in or opt-out of certain studies or retract their consent altogether would provide far more participant protection.

Privacy and Security

Not only is genetic data identifiable, predictive and provides extensive information about an individual, it also provides detailed information about individual’s relatives who have never consented to the disclosure of their genetic information. In fact, there are reports of genetic testing unintentionally revealing family secrets and allowing children of anonymous sperm donors to find one another.

At this time, the direct-to-consumer genetic testing industry is not heavily regulated and privacy laws in most jurisdictions are outdated so privacy policies are left to the discretion of the individual company. Even if many privacy laws require “explicit consent” from consumers, as with many privacy policies, the fine print often includes terms that allow the company to unilaterally modify the terms, is vague about the usage of personal data for marketing purposes and reserves the right to share data with third party suppliers or in the case of a merger, acquisition or bankruptcy. Regardless of privacy laws, there is always a risk of data breaches and cyber-attacks. Once the data is leaked, there are no rules to govern how it will be used.

Misinformation

The highly complex scientific nature of genetics, a general lack of baseline knowledge in this specialized field and the misuse of statistics and probabilities can leave consumers vulnerable to deceptive marketing practices. Consumers perceive genetics to be backed by scientific rigour and may unknowingly accept pseudo-scientific claims.

Discrimination & Perpetuating Existing Inequalities

While current laws in Canada (the Genetic Non-Discrimination Act) and the US (the Genetic Information Non-Discrimination Act) prohibit discrimination based on the results of genetic testing (ex. insurance testing, employment), marketing practices are often more insidious, walking the fine line between ethicality and legality. Imagine a standardized test prep company offering discounts to people with genetic profiles that typically excel academically and pursue higher education thus perpetuating the advantage of this group when it comes to university admissions.

Think about it.

How would you feel about your genetic profile being used for marketing purposes?

Additional Info

Recommendations from the Privacy Commissioner of Canada regarding direct-to-consumer genetic testing.

Reference

Daviet, R., Nave, G., and Wind, J. (2021). Genetic Data: Potential Uses and Misuses in Marketing. Journal of Marketing, 1-20.

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