It’s a good time to be a consumer. New digital business models have flipped the customer-brand relationship on its head. No longer do consumers need to do their own background research on a product or company to find what they are looking for. Instead, brands come to us. There are more options and more channels to get what you want than ever before.
To Regain Consumers’ Trust, Marketers Need Transparent Data Practices
Consumers expect personalized offers that are relevant to their past behavior and future needs. In order to execute on this level of personalization, companies must collect large amounts of data. However, consumers want only some of their data used and only in a way that they are comfortable with. What’s the right way to navigate such a complex situation? To initiate a more trustworthy relationship, organizations must start by eliminating internal processes of acquiring third-party data. They must use only data that they have earned through explicit customer consent. Moving forward, consumers should (and will) have full visibility into how extensively their personal data is being monetized. GDPR and stricter privacy laws mean that marketers will need to incentivize consumers to share their data. Consider the following best practices: (1) Explain the benefits that customers will receive; (2) give customers full control over the types of data they share; and (3) provide tools that allow customers to easily edit their privacy settings. Marketers should be working to improve lives, not manipulate them.