How to Build Brand Trust Through Transparent Data Practices

Implementing strong privacy policies, actively collecting user consent and empowering customers to decide which data is used and for how long demonstrate a commitment to customer rights.

There are so many advantages to personalization in marketing, for both the brand and the end users. Thankfully, personalization is possible because of the wealth of data readily available at our fingertips and the tools capable of processing it en masse.

However, many consumers don’t trust that brands will do the right or ethical thing with their data. In fact, a recent report from Syrenis found that 92% believe that brands care more about generating profits than protecting their users’ data. As a result, many people are reluctant to engage with brands online.

This is a problem.

Consumers know their digital experiences can be improved by personalization and that they can reap many rewards by entrusting their data to companies they want to do business with. And you know how beneficial this can be for your company—helping to foster positive, trusting relationships with users and turning them into loyal, long-time customers.

Trust is the issue though. And so much of it hinges on how transparent your brand is with what you do with user data. In this post, we’ll explore why data transparency is non-negotiable in modern marketing and how to create a culture of transparency for your brand.

Why Data Transparency Matters So Much

Consumers are very aware that their data is being collected and used online. There are ways to avoid sharing some of this data—like by using privacy browsers and not consenting to cookie collection. Yet, many allow it because they know there are benefits to data sharing.

Although there’s a willingness on the part of consumers to share their personal data, there’s also a growing wariness, too.

For instance, 93% worry about how secure their data really is in the hands of brands.

For many, this goes beyond just worries. People will abandon forms and purchases if they feel they cannot trust a brand to secure their personal data or not exploit it.

So, what will it take for brands to get consumers to let their guard down and trust them?

The actions a brand takes to secure their users’ data matters to 97% of consumers. They’ll go out of their way to give business to companies that consistently demonstrate that they’re serious about data privacy and security.

What’s more, when U.S. consumers were asked what companies could do to earn their trust, two-thirds said that being transparent about personal data usage was most important.

Brands should care just as much about data security and transparency as consumers do since it can have a huge impact on how successful your company is.

That’s because it’s all connected.

You can’t personalize your users’ experiences if you’re not able to collect their data. In order to do that, you must earn their trust.

Once you gain that trust and have the ability to provide custom experiences, content, and offers, you generate greater value for your users. Through this, you gain their loyalty. And that translates to long-term success and a higher customer lifetime value (CLV) for your company.

So, the question is, how do you make this a reality?

What Does Data Transparency Entail?

Being responsible with user data is critical. That means taking only what is necessary from them, using it in an ethical manner, and keeping it safe. Also, being aware of and in compliance with data privacy laws is a must.

If you’re already doing this or your organization is working on implementing a rock-solid data policy now, then you’ve got the most important piece of the puzzle in place.

Now, you need to figure out the best way to communicate this to others.

Establishing an Environment of Transparency Internally

Data transparency begins internally.

To start, you need a policy of ethics that governs everything from how you design your websites and applications to how you do marketing and advertising. Then, you’ll need an ethical data management policy to lay on top of your processes.

As far as who owns the management of your data policy, it will need to be shared among three teams:

• Legal who is responsible for compiling the terms of your policy, publishing it and verifying compliance
• IT who is responsible for implementing the tools and processes for digital data collection and storage
• Marketing who is responsible for collecting, analyzing and using the data collected from users

Your ethics policy needs to be distributed to and understood by all team members involved in these processes as well. The same goes for any third parties that you work with. If they have any access or exposure to data you’ve collected on users, they must abide by all your data management and security policies.

If you don’t provide visibility to your teams and contributors in terms of what they can and cannot do with data, your organization risks making a major misstep and violating your users’ trust. Any progress you’ve made up until that point will be for naught. And you may never be able to regain their trust, especially if you promised that their data would be safe.

Another important aspect of internal transparency is performing semi-regular audits. The goal of these audits is to verify that everyone abides by your data policies. Your technology should be audited, too.

Communicating Your Data Management Practices Externally

Your users don’t need you to spell out literally everything you do with their data. For instance, this would be way too specific:

“We use the first name field you filled out in the contact form to send you personalized email greetings.”

What your users need to know, however, is what kinds of data you’re taking from them, what general purpose they serve on your end, and how you’re managing and securing it, among other things.

If you’re not sure what sorts of transparent data practices to adopt, here’s a list of what you can do:

• Publish a custom, detailed privacy policy on your website or app. Let users know you’re collecting data, what kind you’re collecting and how you use or don’t use it.
• Include information about data security management, what lengths you go to to keep your users’ data safe and how long you keep their data.
• Do not use overcomplicated legalese when writing about user data collection, management or rights.
• Publish information about how your business and website are in compliance with relevant regulations.
• Include links to all relevant privacy and data policies whenever you ask users for data (i.e., around forms).
• Add relevant and real security trust marks around data intake areas of your site, espeically regarding data privacy and protection.
• Add a cookie consent notice and form to your website whenever you track users or directly collect data.
• When asking for consent, explain the categories of data you track as well as which are necessary to enable (for usage purposes) and which are not.
• Allow users to choose if they accept or reject cookie tracking (in compliance with regulations like GDPR).
• Allow California-based users to opt out of the sale or share of their data (in compliance with the CCPA).
• Request consent from users again whenever your internal privacy policies or data collection methods change.
• Never auto-check boxes that subscribe users to your newsletter or allow your app to track their data; they should have to actively opt in.
• Give signed-in users or customers the ability to configure preferences regarding communication—which channels you use, type of messages sent, frequency, etc.
• Allow users to request a record of the data you’ve collected.
• Allow users to request that their data be deleted.

Transparency is crucial when dealing with customer data. But it’s not just a policy to abide by when letting users know what you’re doing to help safeguard their personal information.

If your organization experiences a data breach, timely, speedy and honest communication with customers is critical.

Let them know when the breach occurred, what data is at risk (even if theirs is safe), and what actions your company is taking. Even if your users weren’t directly impacted, it’s still important to give them info on what they should do next, who to contact at your organization if they have concerns, and so on.

Having a relationship that’s built on trust and transparency up should make it much easier to weather this type of data disaster. Of course, some customers may be scared away. However, others will stay if you continue to be open and honest and demonstrate that their privacy matters greatly to you.

Wrapping Up

Thanks to the advancements made in machine learning and AI, marketers can do some really incredible stuff with customer data. In addition to devising more effective campaigns that precisely target users and segments of users, marketers and designers can deliver truly personalized experiences.

The problem is, you need users to trust that you’ll protect their data just as much as you would your own.

But how do you gain their trust to do that? There are a number of things that brands can do to build stronger, trusting relationships with users:

• Create high-quality, reliable products.
• Promote your shared values.
• Go above and beyond in customer service.
• Have a relatable, genuine personality.
• BE HONEST.

When it comes to data, it’s that last bit that’s so vital. Your customers know what they stand to gain by giving you access to their data. At the same time, they know what they stand to lose if they allow access to a brand who is irresponsible with it.

By coming up with a stringent data management and security policy and being transparent about your data practices, you’ll earn your users trust. This will give your brand a competitive edge, allow you to have better relationships with your customers and improve your CLV and retention rates.