How To Collect, Handle, Store And Use Your Data To Help Build Consumer Trust

4th May 2023
Judith Andrews

Collecting, storing and utilising customer data is vital for all businesses. Even the simplest information about your target consumer can give nuggets of detail that help to really focus your marketing and make it deliver a higher return on investment. 

Today’s consumers are more savvy than ever; they know the value of their data and will only willingly hand it over to businesses they feel will use it responsibly.

The way you obtain customer data and use it can provide many opportunities to build trust, nurture and grow customer relationships and elevate your reputation. 

I recently attended an International Association of Privacy Professionals’ (IAPP) conference which featured some fascinating insights on how to build trust through data practices for all businesses, which I’d like to share with you: 

  1. Data privacy is a top consumer concern 

A recently released report by Ketch, undertaken by MAGNA Global Media Trials on 5000+ US and UK consumers looked into how much they value data privacy and determined the impact to business data practices and revenue growth. 

It showed that people highly value their data privacy, and the majority feel strongly about it.  In fact, more people highly value data privacy than other ethical issues: 

  • Data privacy – 67% 
  • Sustainability – 53% 
  • Diversity and Inclusion – 50% 

How companies handle people’s data can have important implications for brand value and trust with their customers and audiences. 

Therefore, it’s vital to consider whether your current key messages are telling consumers what is of most interest to them; it’s likely they’d prefer to know how secure your data systems are ahead of how much recycled materials you use.

That’s not to say that you add it in your marketing, but it does need to be prominent in the customer journey. 

  1. Transparency is key 

The report showed that 77% of people are concerned about how their data is being gathered and used. The biggest issues were lack of transparency (58%) and lack of control (75%). 

When done correctly, transparency and control can have a positive impact such as an increase in trust, preference to that organisation over others, willingness to support a company more, tell others about it and pay more to shop with that business. 

The simple lesson here is to always be open and honest. Make sure you communicate the why, what and how of your information practices clearly and concisely.    

  1. Be straightforward and give control 

Consumers want data practices that are easy to understand and give them a choice in how you use their data.  Be open and clear about how data will be used, starting with your privacy notices, disclosures and consent process. Ensure they are as brief as possible, while containing all the vital information, in plain English – no one likes reading pages of jargon!  

Make it easy for consumers to change their privacy and other preferences at any time and introduce a simple process to manage this. When people do make a choice, make sure it is reflected in all the data systems that store their information.
If they change their options or unsubscribe and still receive information that’s unwanted or irrelevant, it can damage your reputation with them – and others they tell, especially if they are a keyboard warrior who leaves a negative review! 

  1. Be proactive – and reward data sharers! 

Being proactive about data privacy can be a differentiator to consumers; the report found that in the UK, consumers will reward brands that have responsible data practices with 28% more purchase intent. They will also spend more with brands when they feel their data is safe with a 4% – 6% uptick in actual revenue. 

Also, demonstrate how much you value customers who share their details: provide a reward or incentive for doing so. Customers understand the benefits of their data to a business and appreciate recognition of its value. Offering a benefit from your company, a truly personalised experience, information about new products, a discount on future purchase or free sample can all persuade a customer to part confidently with their details. 

  1. Don’t be nervous about ‘legitimate interest’! 

Businesses have a fundamental right to find customers. Legitimate interest simply means using existing data for direct marketing about products/services that could genuinely be of interest. Privacy is also fundamental but not an absolute right. Legitimate interest is subject to necessity and proportionality – and can be a better lawful basis than consent. 

To use it in the right way, simply ensure that you: 

  • Are transparent in your marketing/data collection and that you take responsibility for the whole life cycle of your data 
  • Gather quality information over quantity when it comes to first party data
  • Incentivise! This can help with obtaining informed consent preferences in the first instance 

The important thing to remember is that personal data is worth a huge amount to a business but even more to a consumer. Handle it with care, and you will be rewarded with their trust and loyalty.

Take the next road to business success

Join today from as little as £275

Are you ready to start enjoying the benefits of membership of Kent Invicta Chamber of Commerce?

Join Now
Site by