Pierluigi Paganini
September 17, 2024
In the digital world, trust is essential for the relationships between brands and consumers. However, trust is not a once-off exercise; it’s a continuous process in which each interaction helps build and nurture loyalty over time. This is why it’s crucial to understand the factors contributing to trust, particularly how online brands manage consumers’ personal data.
There are several reasons why consumers refuse to consent to their data being shared in the first place. These include a lack of understanding of the destination and purpose of their data and uncertainty about the consequences of sharing their data. Conversely, users are more likely to consent to their data being collected when they feel they have decision power over their data, when confident their data will not be sold to the highest bidder, and when they are sure intrusive communications won’t spam them.
A recent Thales report on digital trust explores the complex dynamics of trust, focusing on user experience, security, and data privacy. In today’s digital landscape, consumers seek transparency, control, and respect for privacy. The report provides insights into factors influencing user consent for data collection and usage and reasons for consumer disengagement.
While there may be widespread concerns regarding information sharing, the report revealed that most users (89%) are willing to grant consent for organizations to utilize their data. However, this willingness comes with conditions. Users want to enjoy personalized experiences yet still safeguard their privacy rights. For businesses, this balance rests on the principle of user empowerment, where individuals retain control over the extent and purpose of data sharing.
The survey also found that nearly one-third (32%) of consumers will only share necessary information, indicating that organizations should only collect and store data essential for specific purposes. Additionally, a similar number (30%) expect to be able to select which data they share. Consumers want detailed control over their information and the flexibility to adjust their consent based on various factors, such as the context of the interaction or perceived risks of data misuse.
Companies must navigate the challenge of providing personalization while ensuring privacy protection. While leveraging data-driven insights allows brands to offer tailored experiences, respecting user preferences for selective sharing is crucial for maintaining trust and fostering lasting relationships.
Another cornerstone of trust is transparency. Consumers are increasingly aware of the value of their personal information and demand clarity on how it’s collected, used, and protected by companies. This transparency is more than a courtesy; it’s a fundamental right that empowers users to make informed decisions about their data.
A Statista survey of US consumers showed that two-thirds (66%) of respondents said they would gain trust in a company if it were transparent about how it uses their personal data. More than half (55%) claimed that reducing unnecessary data collection was an additional factor that would help them gain trust in a company or brand.
Today’s consumers also expect to be informed about data collection practices. The Thales research showed that more than half (55%) demand to know when and how their data is collected, whether through website cookies, user accounts, or other tracking mechanisms.
To align with these expectations, brands should adopt modern CIAM platforms that embed consent into the user journey through forms and actions. A conversational approach to onboarding is becoming a cornerstone for a reliable customer experience, and asking for consent explicitly and clearly is critical. Businesses that are ahead of the curve deploy “Progressive Profiling” techniques that do not overwhelm the customer during the user journey yet ask all the key questions at the right time while establishing the user as a customer. Moreover, businesses should allow users to access, review, and update their data preferences.
Equally important is the consumer’s “right to erasure,” with 53% expressing a desire to have their data deleted upon request. This right is protected by privacy regulations like the EU’s GDPR and Brazil’s LGPD, and it lets users maintain control over their personal information, ensuring that organizations cannot indefinitely retain data without consent or justification.
Other regulations have similar stipulations, like California’s CCPA and the expanded CPRA, which allows consumers to request the deletion of personal information collected from them directly by the business. Also, in the US, ARPA seeks to establish fundamental data privacy rights for citizens, with strong oversight and enforcement mechanisms. In South Africa, POPIA states that personal data may only be stored or used to the extent it is adequate, relevant, and not excessive in relation to its purpose. It enables consumers to request responsible parties to correct or delete personal information or records. However, it does not explicitly grant a “right to be forgotten.”
In the digital arena, the stakes are high, with consumers ready to sever ties with brands that fail to meet their expectations. The reasons that consumers abandon brands range from excessive data demands (29%) to subpar online support (27%) and concerns over data misuse (26%). This highlights the fine line businesses must tread between data collection, user experience, and security to retain customer loyalty.
Recent Forrester research revealed that Trust needs to be built continually and that companies must act quickly and decisively in the event of a crisis. “Consumers will take action if trust is broken, such as warn friends and family to avoid the company or stop doing business with the company if they find a product or service error from a company that they have been doing business with for a long time,” the analysts said.
Consumer expectations also vary across sectors and are influenced by industry norms and the nature of the service. For instance, according to the Digital Trust Index, some users (27%) base their consent on the sector or service type. In comparison, nearly a quarter (24%) rely on meticulously reading terms and conditions before consenting, stressing the importance of clear and accessible legal documentation.
There’s no doubt that trust is critical to the success of any organization. An Edelman report highlighted how the need for trust is on the rise, with 71% of respondents claiming it is more important to trust the brands they buy/use today than in the past.
Trust and user experience are closely linked in the digital landscape, with data collection as an indicator of brand integrity. Companies must carefully balance security, privacy, and user experience to gain and keep consumer trust. The digital world presents opportunities and challenges for brands wanting to build trust with their audience.
By emphasizing transparency, giving users control, and providing exceptional experiences, brands can establish solid connections and enhance customer lifetime value. Ultimately, in digital trust, every interaction plays a significant role in shaping brand-consumer relationships, one step at a time.
About the author : Kirsten Doyle has been in the technology journalism and editing space for nearly 24 years, during which time she has developed a great love for all aspects of technology, as well as words themselves. Her experience spans B2B tech, with a lot of focus on cybersecurity, cloud, enterprise, digital transformation, and data centers. Her specialties are in news, thought leadership, features, white papers, and PR writing, and she is an experienced editor for both print and online publications. She is also a regular writer at Bora.
Follow me on Twitter: @securityaffairs and Facebook and Mastodon
(SecurityAffairs – hacking, data usage)
Laws and regulations / December 23, 2024
