75% of consumers aren’t keen on buying from brands with poor personal data ethics, Business Wire reveals. On the flip side, almost 90% are more likely to be loyal to businesses that protect their personal data. This shows that data security is now a key driver of customer loyalty, and it’s essential to make it a key part of your marketing strategy. If you’re upfront about the data you collect and how you use it, you’ll build trust with your customers, which turns into increased loyalty and sales. Even if a breach does occur, if you’re open and honest about it and act fast to contain the damage, you can protect the relationships you’ve worked so hard to build.
Streamline your data collection
Companies that keep data collection to a minimum actually tend to see 40% fewer data breaches than those who don’t. This is really just common sense. If you don’t store a customer’s home address or phone number, hackers can’t steal it. So only collect what you need, and no more. Go through your sign-up forms and check each field is really necessary for what you’re selling. For example, if you only sell digital products, you don’t really need to ask for the customer’s phone number. Under data privacy laws, you should have a clear reason and need behind why you ask for each piece of data. You also have a legal duty to delete data once it’s no longer needed, so it helps to purge inactive accounts on a regular basis. If a customer hasn’t shopped with you in a few years, delete their address and payment info.
Use straightforward language
You also need to explain your data collection practices to customers in a way they can understand. It’s no secret most consumers simply don’t bother to read company disclosures because they’re usually full of jargon and just plain dull. Even when people do read them, they tend to just skim the main details. So, write your privacy notice in a simple, conversational tone. Keep it short and to the point, just a simple page that covers what data you collect, why you need it, and how you keep it safe. You can then include links that go to pages with more in-depth info if customers want to learn more. The notice should be easy to find on your website, and also direct customers to it whenever they sign up or make a purchase. Customers who actually understand how you look after their data are more likely to trust you and keep coming back.
Be transparent about breaches
It’s a fact data breaches can still happen no matter how good your cybersecurity and data practices are. Ransomware is a growing threat that almost 6 in 10 businesses were hit by in the last year alone. It’s a type of malware that locks your files and demands an average payment now of over $850,000 to get them back. You can help protect your business with ransomware security technology that detects and contains breaches early on before they have the chance to do any damage. But it’s still important to have a plan in place just in case an incident does happen.
Honestly is always the best policy, so tell your customers what happened within 24-48 hours of the breach. Send an initial email that outlines the situation and what you’re doing to resolve it. Obviously you don’t have to have all the answers right away, but even a straightforward acknowledgement of the situation can help reassure customers. Let them know if they should do anything to protect themselves, like change their password or login details. You can also create a page on your website to post regular updates as the situation changes. This effort will pay off as almost 90% of customers say they’d give a business a second chance if they simply admit a mistake’s been made and take action to make it right.
Strong data privacy practices are now a must to build a loyal customer base. When you do this well, you’ll protect your customers and give them a positive experience that they’ll want to come back to.