Why it’s important for operators to be transparent on how they plan to use customers’ data
There’s no denying that customer data is hugely powerful for companies’ marketing strategies. However, with the implementation of GDPR laws earlier this year, consumers are increasingly aware about who they give access to their data and what for.
In order to put consumers’ minds at ease, operators need to make sure they’re being transparent with how they will use the data and how collecting it can actually benefit the customer.
1. A personalised marketing strategy to drive customer loyalty
Building a more personalised marketing strategy can be key to driving customer loyalty and also helps operators to be transparent about exactly how they’re using their customers’ data. In a recent survey conducted, around half of the respondents said they would be willing to share their personal data in exchange for clear benefit or enhancement of services*, and this is where a personalised marketing strategy fits in really well in terms of transparency.
Customer data allows for personalisation such as birthday offers e.g. a glass of fizz or a free pudding. If the data is showing that a customer hasn’t visited a site in a while, operators can use this to draw them back in with a re-introductory offer such as money off their next food bill to encourage that return visit. All of this is done with the customer in mind and is a great way of showing them exactly how their data is being used with offers tailored exclusively to consumers, making for a more personalised experience overall. It is key to show the customer that their interests are at the heart of the activity.
2. Build trust and brand loyalty
Transparency while using customers’ data can also help to build loyalty and trust. If brands are open and honest with customers about how their data is used, then they are more likely to be trusted with the data they do have. Following the Cambridge Analytica scandal at Facebook earlier this year, of 1,000 people surveyed, one in 20 said they were looking to leave Facebook as a result of this breach**.
Simply put, users need to be able to trust that a brand is looking after their data and being honest about how it is being used. However, in a sample taken from our own research, we’ve found that over 50% of guests (with around 62% in the 18 to 30 age range) are still happy to login to Wi-Fi via Facebook, therefore providing operators access to their social data.
For those brands who do get this level of transparency right however, the rewards are huge. Consumers will naturally flock to a brand that they can trust, likely recommending friends along the way too.
3. Giving the power of choice to the customer
Another key point when considering transparency is keeping the customer informed and giving them the power to direct companies in how their data is used. Not only does this mean that an operation is tailored precisely to the needs of a customer, but it also ensures they exactly how their data is being used.
Feedback is important to us all, but operators need to be careful not to bombard a consumer when seeking this feedback. It’s also key (and the law) to give customers the opportunity to opt out of their data being used if they decide to withdraw their consent at any time.
Customers’ data can be a huge help for operators, but it’s so important for them to handle it sensitively. By being transparent with how they plan to use their customers’ data will allow them to reap the rewards in the long run.