E-COMMERCE BUSINESS: YOU SHOULD KEEP CUSTOMERS TRUST, AND THE WAY YOU USE PERSONAL INFORMATION MATTERS.

E-commerce Business: You Should Keep Customers Trust, and the Way You Use Personal Information Matters

Building customer trust is essential for any business to succeed. Trust is the foundation of any relationship, and it’s no different when it comes to the relationship between a business and its customers. Customers are more likely to do business with a company that they trust, and building trust takes time and effort.

One way to build trust with customers is to be transparent. This means being open and honest about your business practices, products, and services. It also means admitting when you make mistakes and taking responsibility for them. Customers appreciate honesty and are more likely to trust a company that is transparent, specially on how the company uses their personal information in this digital era. According to a recent Forbes.com article, it is imperative for e-commerce businesses to build and reevaluate their data privacy strategies in 2022. The article cites several reasons for this, which should be carefully considered by businesses in the industry.

Compliance: “… If global retail websites fail to protect shoppers’ data or not comply with digital marketing provisions, they could face fines and penalties under theses laws”.

Data Requests: “… companies often experience a spike in data subjects requests, which can prove overwhelming if they’re not adequately prepared”.

Brand Trust: “Laws and fines are scary, but nothing should concern business more than losing customers’ trust…”.

But how to really and professionally deal with data privacy in a more comprehensive way?

Data mapping is an essential first step for data privacy compliance:

It involves identifying and documenting the flow of personal data within an organization, among many other important information to properly establish new procedures and policies to comply with the regulations. While there are many data mapping software options available, it is important to note that they have limited use. They can help to automate the process of data mapping, but they cannot replace the need for human expertise analyzing different contexts on “why” and “how” the company uses personal information.

To make the right questions when it comes to data mapping, it is important to ask questions that are specific and relevant to the organization’s data processing activities. This includes questions about the types of personal data being collected, the purposes for which it is being processed, and the third parties with whom it is being shared. By asking the right questions, organizations can ensure that they have a comprehensive understanding of their data processing activities and can take appropriate measures to follow personal data regulations. After concluding the data mapping, this process helps the data privacy consultants identify potential privacy risks and ensure that appropriate safeguards are in place to make the company compliant with the regulation.

Too much data could be an issue:

As an e-commerce business, it’s tempting to gather as much information as possible about your customers. After all, tailoring product suggestions based on data is a wise move. However, it’s important to remember that collecting too much data can expose your business to significant risk in the event of a data breach or failure in coming short with the legal boundary of “business purpose”, under the California CCPA or, in some cases, “processing limitation”, found in many other states’ data privacy laws. While offering discounts and benefits in exchange for customer information may seem like a good idea, it’s important to be aware of privacy laws. These laws require that you only collect data that is relevant for a specific purpose and delete it once it is no longer needed. Asking too many questions can backfire in more ways than one.

Managing data subject requests:

It is crucial for companies to prepare for a potential flood of data subject requests in the next months, as many of the new States data privacy laws will be enforceable. Not mentioning the fact that consumers’ rights on data privacy is becoming a trend. Neglecting data privacy throughout the year can lead to severe consequences. Therefore, find the right data privacy professional to help you avoid the misconception that implementing technologies and data privacy management platforms would be the whole solution for data privacy management. Analyzing the request and preparing a proper response may require expertise on this matter.

Personalization:

Personalization can be a double-edged sword for customers. While they appreciate brands that cater to their preferences, they also worry about retailers knowing too much. As a result, websites should strive to be as much transparent as possible, and proactively seek the costumer awareness of the use of their personal information. Brands that can achieve this delicate balance will be the ones that succeed in gaining costumers’ trust and avoiding fines.

Re-marketing:

Retargeting has become a bit trickier lately, thanks to Google and Apple’s privacy policies. Third-party tracking is a no-go, but fear not! There are still ways to nudge shoppers towards that purchase they were oh-so-close to making. Bombarding potential customers with ads across every platform can have the opposite effect. It’s time to take a page out of the tech giants’ book and adapt your marketing strategies to this new era. Contextual marketing could be a good start. It is necessary to stay ahead of the game. E-commerce businesses that fail to consider data ownership are already losing customers, and this trend is likely to continue in 2023 and beyond. It is important to prioritize protecting users’ data to avoid unpleasant reminders and ensure that your audience’s privacy and boundaries are respected, even amidst pricing strategies, seasonal discounts, and social media promotions.

Writen by:

Marcio Cots – Chief Operating Officer

GetGlobal International*

*GetGlobal International is an international consultancy that assists companies aiming to comply with personal data privacy regulations based on constant legislative and market updates. We selected the best and most respected experts in Data Privacy in different regions who are worldly specialists in data privacy, offering the necessary support for your company to fit regulations quietly and safely. GetGlobal’s team has helped hundreds of companies from all sectors. They’ve become a reference in data privacy compliance as a complete and multidisciplinary solution