Brands build consumer trust through loyalty and transparency, however with the influx of data breaches and lawsuits against Big Tech, how can organizations prove to their consumers they have their best interest in mind?
Building (and Repairing) Consumer Trust
Transparency matters more than ever. In fact, a recent study conducted by Cassie reports that 82% of marketers believe transparency around data collection can build or repair consumer trust. This means it’s important for organizations to create opportunities for customers to voluntarily share and update preference data with the brands they interact with.
Building consumer trust through transparency and consent management practices can lead to a variety of benefits for sales and marketing. Customers are more likely to engage with brands that are open about their data practices and willingly share their preferences. In addition, implementing good consent management practices not only helps in avoiding customer complaints and regulatory fines but also strengthens customer relationships and generates a positive return on investment.
Utilizing Ethically Sourced Data
93% of marketers believe shifts in data privacy will rebuild trust. How can marketers lead their organizations to be transparent? Consumers will not purchase from companies they do not trust, so it’s essential that marketing teams carefully consider where the data they collect is going, and ensure they explain this to users in a way they can understand. Many marketers are pivoting and relying on more first party data, in addition to other tactics that allow consumers to share anonymous opinions and preferences.
To ethically target consumers, marketers can consider tactics like establishing partnerships with other organizations, utilizing contextual ads (i.e. showing visitors ads for makeup while they visit a makeup site), or investing in tools that have the ability to anonymize visitor information.
Another big way consumer behavior insights can be ethically derived, is through first party data. It can be invaluable for marketers. By understanding their customers better, marketers can make informed decisions on digital spend, product development, and enhancing overall website engagement. However, it is crucial for marketers to strike a balance between personalization and compliance with privacy legislation to fully realize their potential and avoid any potential pitfalls.
Brand Usage of First Party Data
First party data is the information collected directly from a company’s customers and users. This is everything obtained from online transactions, website interactions, surveys and poll results, customer service, loyalty programs, and other sources. Marketing teams can use this data to learn what their customers want in an ethical way.
By utilizing first party data, brands are able to create a personalized experience for consumers while maintaining compliance for ever changing privacy legislation. The first step in creating a record for consent for cookies on a user’s browser and beginning to build their anonymous preference profile is to clearly state the use of visitor information on the brand’s website.
The current privacy landscape is leaning towards brands that prioritize transparency and ethical data practices to build and maintain consumer trust. By embracing first party data and providing clear consent management options, marketers can foster stronger relationships with customers, drive engagement, and ensure compliance with privacy regulations. Through these efforts brands can thrive in an environment where consumer trust is more critical than ever before.
