Data is everywhere. Every time someone visits a website, signs up for a newsletter, downloads an app, or makes a purchase, they leave behind information that can tell a business something about them. Those businesses pay attention so that they can make smarter decisions.
However, customers will only happily share information with brands they trust and walk away from brands they do not. As such, businesses must balance the need for data to personalize consumer experiences with ever-evolving privacy rules and expectations.
At Connection Model, we help you thrive in this data-sharing world.
Most customers share information when they get something useful in return. For instance, some sign up for a loyalty program to receive exclusive discounts. Others answer a short questionnaire to get better product recommendations. What they all want, though, is to know that the exchange is fair.
According to Cisco’s 2024 Consumer Privacy Survey, which included more than 2,600 consumers across 12 countries, 75% of respondents said they would not purchase from an organization they did not trust with their personal information.
The takeaway for marketers? When customers understand what they agree to and feel confident about how their information will be handled, they are more likely to engage willingly and help you learn what they like, what they need, how they shop, and what might encourage them to come back.
So, what should you do?
Building customer trust is an ongoing commitment. Customers want to see that a brand respects their data, keeps its promises, and gives them control over their choices. Here are a few ways businesses can get it right.
Explain what information you collect, why you need it, how you will use it, and whether you will share it with other organizations. Use straightforward language customers can understand without having to look up every other sentence.
Consent requests should also be easy to follow. Give meaningful choices instead of pressuring consumers into accepting everything. They should also be able to revisit their choices and change their preferences whenever appropriate.
Two particularly useful types for marketers are zero-party data and first-party data.
On the one hand, zero-party data is information customers intentionally share with a brand because they expect it to improve their experience. Businesses can collect these details through product quizzes, preference centers, onboarding questions, account profiles, post-purchase surveys, and loyalty program registrations.
On the other hand, first-party data is information a business collects directly through its own interactions with customers through websites, e-commerce platforms, mobile apps, customer relationship management (CRM) systems, and email or SMS marketing tools.
Combining data creates a clearer picture of what your consumers want, but marketers should organize it and look for meaningful patterns.
Personalization should make life easier for customers. However, it can become intrusive instead of helpful, especially when brands focus too much on showing how much they know. Effective marketing still comes down to the right message, the right person, the right time, and the right place.
A personalized recommendation is a valuable suggestion, not an unexpected reminder that you have been watching your consumer’s every move. Use information responsibly and ensure every interaction has a purpose.
Governments worldwide are introducing and strengthening laws for consumer data privacy. Staying compliant with state, national, and international privacy requirements shows customers that your organization takes its responsibilities seriously.
Two important privacy frameworks businesses should know about are the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
The GDPR has been in effect since May 25, 2018, and it applies to organizations established in the European Union and, under certain conditions, businesses outside the EU that process the personal information of people living there. The CCPA, as amended by the California Privacy Rights Act (CPRA), gives eligible California residents greater control over their personal information.
If customers are more willing to share data because you made it easier for them to understand what they are signing up for, your preference center deserves attention. A good preference center gives consumers the freedom to make choices, which can improve opt-in rates. How?
Imagine a preference center that asks customers to subscribe to marketing communications with a few checkboxes and generic descriptions, and another that explains the benefits of each communication option. The latter will be more encouraging.
When redesigning your preference center around clear customer value, be realistic. It will not automatically guarantee higher opt-in rates; the results will depend on the audience, the existing experience, the clarity of the value proposition, and how well the new design works.
Still, it is a worthwhile opportunity to test.
Look at your current opt-in rates, form completion rates, consent choices, and unsubscribe rates. Find where customers lose interest or drop off, then make the necessary improvements.
Once the redesigned preference center is live, compare its performance against your original version. You can also run A/B tests to understand which explanations, layouts, and value propositions encourage more people to opt in.
It is exciting to create better customer experiences, but none of your tactics can reach their full potential without one essential ingredient: trust. For marketers, shifting the focus from collecting as much data as possible to building consumer trust is a must.
At Connection Model, we are ready to help you develop a first-party data strategy that puts customer preferences, transparency, and meaningful consent at the center of your marketing efforts. Let us give your customers more reasons to say yes to sharing their information with you. Schedule a free consultation today.