How is consent and data privacy connected to the e-commerce industry?
- In the UK, more people shop online than anywhere else in the world. In fact, e-commerce now represents 30% of the UK's overall retail market.
- With rising demand and intense competition, e-commerce companies are taking advantage of every opportunity they can to stay ahead of the curve, especially when it comes to building and improving their relationship with customers. And this can only happen by collecting the personal data of customers.
- UK GDPR data privacy and security laws set strict regulations for companies about protecting people’s personal data.
So, how can e-commerce companies like yours ensure that personal data is collected and managed compliantly?
And how can you build better relationships with your customers while still following data privacy laws like the UK GDPR?
Keep reading to find out.
Why is data privacy one of the hottest topics for most e-commerce companies?
- Increasing popularity of data protection laws
Laws such as the UK GDPR are mandatory for any company that processes personal data. You have to follow strict rules and ensure that data is used properly, lawfully and transparently.
Complying with it can be challenging for some e-commerce companies that collect a high volume of customer data. Some companies delete client data to avoid fines and penalties, without realising there are legal ways to gather data.
In turn, they miss out on opportunities to enhance marketing communications, do better customer targeting or stay ahead of the competition.
- Getting closer to a cookieless future
Popular internet browsers like Google have started limiting tracking via third party (advertising) cookies.
Because of this, many e-commerce companies will have to switch to customer surveys or website activity (also known as zero-party and first-party data) for data collection.
Companies like yours can still benefit from this. Zero- and first-party data collection methods are more transparent, allowing customers to know exactly what personal data you are collecting. With consent and preference management tools, you can do just that!
- Customers care about privacy
With more recent data privacy scandals, customers are more alert and concerned about the safety of their personal data. Privacy is no longer a “nice-to-have” but a “must” to gain customer trust.
In fact, customers are loyal to companies with stronger data security and are more comfortable sharing their personal data if they can maintain control over it.
Now let’s look at how exactly you can make sure that your e-commerce company stays compliant.
Becoming GDPR compliant: How can consent and data privacy for e-commerce help?
As an e-commerce company, you collect and manage large volumes of personal data but also want to be GDPR compliant. For that, you first need to get consent from your customers.
Let them choose what data they prefer to share with you, and ensure that their data is safe and secure.
Here are a few ways you can do that:
- Adjust your cookie policies
Companies can no longer tell their customers “By using the site, you accept cookies”. There must be a clear choice to accept or reject cookies.
This is because the UK GDPR Recital 30 states that cookies are considered personal data: as with any personal data, you need consent to track it.
- Make sure that the consent you obtain is “valid”
Valid consent is consent that is freely given. It is specific and informed. It is actually a requirement of the UK GDPR Article 4.
To do this, the information that customers consent must be offered in clear and understandable terms.
- Show your customers what their data is used for
To meet the rules of the UK GDPR, many companies build hubs for their privacy policies.
Here, your customers can see how their data is used, what it's used for and how they can manage their consent.
- Prioritise quality over quantity
With consent and preference management, you can collect the most relevant data. That is the information that customers are willing to share.
Doing this can help your marketing efforts by creating more effective campaigns and improving your customer relationships.
While making your e-commerce company GDPR compliant, there’s more you can do with consent and data privacy. You can also take advantage of opportunities to improve your customers journey and offer superior experiences.
5 Winning Tips for e-Commerce Companies: How to Use Consent and Data Privacy to Improve the Customer Journey
- Optimise customer touchpoints
Identify customer touchpoints on your website. Use this to maximise your interactions with them and start building stronger relationships.
For example, the first touchpoint on your website is usually your consent banner. Personalising and optimising the banner shows that you care about data privacy and lets your customers choose what data they want to share.
- Reduce consent fatigue
Most customers access your website from different devices. Set consent permissions across multiple devices to ensure you only ask for consent once. So, the customer has to make their consent choice only once.
- Prioritise zero-party data
As more platforms stop supporting third-party data, switching to zero-party data that customers actively share will be crucial to a successful data strategy. Zero-party data is data that a customer intentionally and proactively shares with a company. It will help build trust with your customers.
- Turn policies into opportunities
- Personalise marketing efforts
Displaying personalised content to the right people at the right time will improve customer service. Get customers more involved, and nurture them to convince them to make purchases and keep coming back.
How Can DataGuard’s Consent and Preference Management Solution Help e-Commerce Companies?
With DataGuard’s GDPR-compliant Consent and Preference Management Solution you can make decisions that put your customers first all while staying ahead of the competition.
You can also:
- Boost opt-in rate by over 60% and offer your customers better experiences.
- Work more efficiently and save time with one source of truth for all your first-party consent
- Build trust with transparent, compliant, and easy-to-understand cookie consent policies.
Do you want to start creating more opportunities through consent and data privacy? Speak to our experts and get started today.
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