Customers Need Value in Exchange for their Information

Today, more and more companies aim to monetize the customer information they accumulate. They do this by targeting ads and promos based on customer preferences and history, or by sharing it with commercial partners. But before all that happens, the customer must first give their data willingly. How in the world will that happen? For starters, businesses must gain the trust of their customers first by ensuring that the advantages of signing up for a service, filling a survey, or getting subscription are clear for everyone. They must willingly give their data, and they won’t do that unless they see what’s in it for them.

Over the years, having detailed customer information has proved to be very powerful for many brands. Personalizing your campaigns leads to effective rewards program. In addition, with this data, you can make improvements for an overall improved customer experience.

Exchanging Value between Your Brand and Customers

Part of the basics of modern marketing today is the way businesses and customers communicate freely and quickly. There are three main points to creating this exchange that includes:

• The exchange of money for products and services
• Customers sharing information in exchange for a reward, freebie, discount or exclusive access
• The commitment and delivery of an enhanced customer experience

Making Customers See the Benefit

When you are collecting data for customer rewards, it is important that your target market see the clear benefit in providing and sharing their data with you. Of course, there are always others out there who aren’t comfortable with divulging their personal information and that is okay. Make it known as well that there is an opt-out option and providing their information isn't a requirement. Here are some tips to your customers see the benefit:

• Provide an incentive – this could be a free gift, discount, etc.
• Show proof of what you offer – you can do this through posting videos, testimonials, reviews, or images.
• Show a sample – giving customers a glimpse of the rewards they will get will excite them, and give them more reasons to provide their info.
• Make your privacy policy clear – reassuring customers that their information will be kept private will make them feel more comfortable about sharing their data.

Customer Research

Customer research is vital to getting the right information, along with offering the best experience possible for them. Your work doesn’t stop at just obtaining customer data. You need to continue to build trust and educate customers so that it is clear to them where and how their information will be used. This is a difficult task because not a lot of consumers see the benefit of filling out a form. You can change this attitude by giving them control on what information they choose to share.

Data harvesting for customer rewards will benefit everyone. As a company, you will be able to enhance customer experience by knowing customer preferences, and providing value added services based on their needs. The data collected will also enable you to plan strategies that will broaden your market. Customers, on the other hand, will gain from the rewards you provide and will benefit from the product improvements that you are able to implement from the details you acquire.

Photo Credits: Flickr Creative Commons

Consumers are Now More Concerned with Data Privacy, Study Reveals

In stark contrast with the drop in consumer confidence last year, consumer loyalty and trust is seemingly making a comeback, according to a recent study done by fast.MAP.

According to the research, which was collated last September, marketers and companies have regained trust on sharing personal information, especially in transacting online, with more than 80 percent of users saying that they are willing to provide personal information such as their name and address in online transactions. This is a remarkable improvement when compared with the 50 percent approval rating recorded in the previous year.

However, this surge in consumer loyalty and trust to brands comes at a hefty price – more and more customers are wary about data breaches and privacy hazards, and will only give out their personal information when they think it is essential to the transaction.

Consumers are now more concerned about giving out personal data that could possibly be used for nefarious marketing activities, and they are now more familiar about which information should be given out on particular instances.

For example, the study revealed that over half of consumers are willing to give their credit card details when they shop online, as they know that it is essential to complete the transaction.

However, when they know that providing personal information is more of an option than a requirement, such as when joining online groups and forums. According to the fast.MAP study, less than 2 percent of the respondents are willing to provide their personal information such as credit card details when requesting for samples, inquiries and price quotations.

Unlike before, consumer loyalty and trust has become more difficult to earn. More and more consumers are demanding transparency on corporate privacy policies, with most of them closely scrutinising marketing strategies that could potentially jeopardize their personal data.

Though more consumers are willing to provide private information, it is only limited to three essential pieces of information: name, email, and postal address. When companies ask more than the said info, consumers become suspicious and are not too willing to cooperate.

Such information may spring from a related data in the study, which reveals that more consumers this year have reported that businesses have compromised the personal details that they provided, from 21 percent in 2011 to 23 percent this year.

The recent data on consumer behaviour is a strong signal for companies to review their privacy policies and be more responsible on the handling and collection of consumer information. At a time when more people are wary of fraud and data manipulation, companies should focus on how to retain or regain consumer loyalty and trust, rather than engage in activities that could collect more data. New plans and strategies should be drawn to secure consumer data and become more transparent when they deal with consumers.

To regain consumer loyalty, businesses should take time to explain to consumers why they are collecting such data – in the simplest of terms – and assure them of the safety of their identity. They should also acknowledge that it is their responsibility to report any untoward incidents that may lead to data breaches.

As more consumers become concerned with data privacy, it is high time for businesses to be more proactive in protecting consumer data.

Photo Credits: Flickr Creative Commons