From Data Collection to Consumer Trust: A Step By Step Guide!

Our previous blog revolved around how consumers' data gets used for various reasons and how valuable that data is in building many new opportunities and ventures. In order to receive an endless supply of data, companies need to aim for long-term strategies and build trust among their users. What gets observed over the years, the more trusted an organization is from the customer's viewpoint, the more consumers are willing to share their sensitive personal data with them. Of course, In exchange for data, customers want value in return.?

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But have you ever realized that gaining customers' trust can become a major competitive advantage? Imagine if Amazon and Facebook both launch the same mobile service; which one do you think will get away with more customers? We know that Amazon is more trusted than Facebook and will certainly win in this round. But have you wondered why? Companies like PayPal, Paytm, and other new finance firms have the highest ratings in gaining consumers' trust, and social media sites get the lowest trust when it comes to protecting consumers' data.?

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So, it is inevitable that trust plays a massive role in the industry, and it is one of the most significant competitive advantages a firm can have. Now, let's shift our discussion to finding ways how an enterprise can start building customers' trust, for that the following three highlighted points might help immensely;?

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• Educate the customers about data usage;?how can your customers form trust if they don't know how their sensitive information is getting used? In many cases, they might not even know how the firm uses their data. Apple, for instance, is very clear about data usage and has dedicated a whole page to?letting?their customers know that they are using their private information for only better product development. Making it clear and showing transparency about the inner actions is the way to develop trust in the long term.?

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• Allow the customers full access to their data;?it is essential to give complete control to customers over their data; once submitted, the data should not get taken forever. Instead, consumers must be able to pull away if they do not feel conformable and see their data getting misused. Customer satisfaction must be the end goal of every organization, and therefore, make sure to give your customers complete control over their data to build long-lasting trust.?

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• Exchange data for a valued service;?Customers are okay with lending their personal information if it improves their lives, such as an improved service or product. But many firms believe that giving money for sensitive data might be a good value exchange. That reduces customers' trust as it hints that their data is getting used for the wrong reasons.?Spotify offers a better alternative; users get free access to music and podcasts in exchange for customers' data which gets used to target marketing by showing them a particular set of ads related to users' preferences.?

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Conclusion?

We have learned how critical trust can be when it comes to business. The way to build it will require consistent efforts and complete operations transparency. A brand's trustworthiness plays a considerable role in determining its position in the market, which can lead to a competitive advantage that highly trusted brands and firms have obtained over the years.?

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Companies that do not follow or comply with data privacy and security laws will find themselves disadvantaged in gaining access to consumers' data in the long term. Thus, we highly recommend protecting customers' data and aligning your organization with data privacy and security laws to keep the trust intact.?