Here’s how to encourage your customers to share data

HIGH profile hacks in the recent past such as the Marriott and Cathay Pacific hacks compromised millions of users and left customers everywhere on high alert.

In such an environment, in order to encourage consumers to share their data, businesses need to make an effort to explain the value it brings to both parties — and instill confidence that security is top-of-mind for the organization.

According to one study, up to 44 percent of people surveyed are more prepared to share their data now than they did previously, while 62 percent of them believe that data exchange is a crucial element of the modern, digital economy.

But, trust and transparency are also top priorities to these consumers and the benefits they receive in return for their data has to be made clear to them.

Accordingly, here are some of the steps businesses could take to put consumers at ease and be more willing to share their data;

# 1 | Be open about what data you collect

The onus should on the businesses to explicitly inform the consumer what type of data is being collected and how the data is relevant to the brands.

One sure fire way of losing consumers’ trust is when the consumers find out that companies are tapping into their shopping list, daily commute, and workout playlist – after only sharing their emails.

# 2 | Inform customers who has access to their data

If the consumers are aware of all the parties that are privy to their information, they’ll generally be more open to sharing the data. Businesses have to ensure that the data stays within their possession, control the chain of custody and not monetize it.

Telling consumers that you will be providing them their favorite sports scores and also selling their data to invasive third-party advertisers will result in the loss of customer trust.

# 3 | Communicate the data protection measures you take

It is also imperative that businesses engage with their consumers to affirm their commitments to protect their data.

Assuring the consumers that proactive steps are taken to ensure security and keeping them away from falling in the wrong hands are especially crucial in an age when breaches and hacks are common.

# 4 | Ensure compliance with data privacy laws

Most countries and different regions around the world have sets of regulations that companies have to abide by when it comes to data protection. One such regulation is the EU’s General Data Protection Regulation (GDPR).

Businesses should provide the consent notice, according to local laws to the consumer and most importantly, abide by it.

# 5 | Make the benefit of sharing data clear

Businesses that collect data promise enhanced personalized services to its consumers. But customers aren’t really convinced of this notion just yet, because there is little evidence of improvement to show for it thus far.

Brands and companies, therefore, have to work harder to deliver on their promises, in exchange for valuable consumer data.

In short, customers are understandably spooked and frustrated with breaches and unethical data collection. This means businesses have to go the extra mile to ensure that their data is protected and proactively engage with the customers in to instill trust and confidence.

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