More Data, Less Customers? 4 Steps to Trust | Digital Surgeons
Quick answer: Brands lose customers when they collect data without earning trust first — 76% of consumers say they won't buy from a company they don't trust with their data. Four practices fix this: explicit consent, strong data protection, opt-in personalization, and treating privacy as a competitive differentiator, the way Apple, Unilever, and Mastercard already do.
By the numbers:
- 75% of Americans are concerned about their online privacy (McKinsey, via Forbes).
- 63% of internet users think most companies aren't honest about how their data is used (Tableau).
- 37% of consumers have dropped a brand over data practices and switched to one that does better (Cisco).
- 76% of consumers wouldn't buy from a company they don't trust with their data.
4 ways to earn customers’ data and trust.
- Explicit Consent and Transparency: Gaining explicit consent from customers before collecting and using their data helps establish trust and lets them know you’re being transparent about the ways you will be collecting, storing, and using their data.
- Consumer Data Protection: By taking proactive measures to protect consumer data, you can ensure appropriate security measures are in place to protect their data and that you are compliant with privacy rules and regulations. And since they’re tightening worldwide, brands need to make sure that they’re up-to-date.
- Opt-In Personalization: Recently, there has been a trend towards opt-in personalization, a concept that allows customers to actively participate in the level of personalization they want when they interact with a brand. This empowers the consumers to be a part of the decision-making process, fostering trust and credibility.
- Privacy as a Competitive Differentiator: Forward thinking companies are starting to look at privacy as more than just a way to build trust. They’re seeing it as a customer experience differentiator and a foundational element for building sustainable revenue streams. In fact, Gartner predicts that by 2024, an average large organization’s annual privacy budget will exceed $2.5 million, and there will be a shift from compliance ethics to competitive differentiation.
Brands that have set a great example.
- Apple: Privacy is more than just a marketing slogan at Apple. The company has proven that it can turn it into a competitive differentiator. For example, new iPhone features restrict app access to personal data, and the company has heavily advertised its commitment to privacy. This approach gives Apple products a competitive edge, making them more attractive to consumers.
- Unilever: At Unilever, compliance with privacy regulations is the baseline, and like Apple, they’re viewing the new Age of Privacy as an opportunity to set themselves apart from the competition and build more trust with their customers.
- Mastercard: Similar to Unilever, Mastercard sees compliance as the bare minimum, and strives to go beyond that to earn the trust of consumers and employees alike. Their approach has helped them navigate the new rules of privacy and maintain their reputation as a brand you can trust.
So what’s the catch? There isn’t one. By embracing privacy-conscious practices–prioritizing trust and transparency as well as empowering consumers–your brand will not only have a chance to build better customer loyalty but also create stronger, more meaningful consumer connections. Not only that, these practices make your brand look good, meaning you could appeal to people who aren’t even in your target audience but share the same values. How’s that for a win win?
If you want to nerd out on customer experience and data we’re here to help.
Frequently Asked Questions
Why does collecting more customer data sometimes lose a brand customers?Because trust matters more than data volume. Surveys cited in this piece show most consumers are uneasy about how companies use their data, and a meaningful share have already switched away from brands that mishandle it. Collecting more data without earning trust first tends to cost brands the customers that data was meant to serve.
What are the four ways to earn customer trust around data, according to this piece?Explicit consent and transparency about what's collected and why, strong consumer data protection that keeps pace with tightening privacy laws, opt-in personalization that lets customers choose their level of personalization, and treating privacy as a competitive differentiator rather than just a compliance requirement.
Which brands are given as examples of privacy done well?Apple, Unilever, and Mastercard. Apple is cited for building privacy into iPhone features and its marketing. Unilever and Mastercard are both cited for treating privacy compliance as a floor, not a ceiling, and using it to build deeper customer trust.
Is privacy really a competitive advantage, or just a compliance requirement?The piece argues it's shifting from the latter to the former. Forward-thinking companies are treating privacy as part of the customer experience and a foundation for sustainable revenue, not just a legal box to check.
What's the risk of not adopting these practices?Lost customers and lost trust. The stats in this piece show a real share of consumers actively leave brands over data mishandling, and an even larger share won't buy from a brand they don't trust in the first place.
