Tips to Manage Customer Data

Since long, customer data has been a sensitive topic. Recent news stories about data breaches by companies have caused consumer confidence to be shaken. Pew Research Center found that 64% of Americans have experienced data breaches personally, and almost half of Americans don’t trust the federal government or any social media site to protect their Data consumer. The European Union has increased pressure on companies to ensure customers’ privacy and make it transparent about how they use their data with the recent adoption of GDPR. These are five tips that your brand should use when handling customer data.

Communicate your data privacy policy

Customers must understand how their data is used. Clear and simple language can build trust and help avoid sanctions. It is important to inform your customers about their privacy rights. Customer newsletters and marketing communications must include a reference to your data privacy policies.

Customers can opt out

Always give your customers the option to opt out of any data that you use for marketing purposes. Even if customers have granted you permission to use their data for marketing purposes, they should feel empowered to make the decisions about its use. You can let them unsubscribe from email communications and request less frequent notifications.

Protect customer data with these measures

There are many ways your company can protect customer data. Limit data access to employees with direct customer contact. A way to increase customer confidence is to collect only the minimum information your company requires. This will ensure that customers don’t feel they are asking too many personal details and that your company doesn’t become overwhelmed by inefficient data.

Provide secure experiences

Protecting sensitive information is essential with encryption technologies. Passwords, credit card numbers, as well as other sensitive data, should be protected. Customers must also know that encryption technologies are being used. For example, customers should indicate that they are secure when making a purchase and include an icon that identifies the technology used. Employees should not share sensitive information on social media. When a customer has a question or wishes to make a purchase, they should have a private conversation.

Customers will have better experiences if you use data

While you may collect customer data in order to grow your company, are you improving customer service? Giving your customers what they want is the only way to grow your brand. You can use data to suggest more relevant products via customers’ preferred channels, provide better service across all touchpoints and offer a seamless experience for customers when they visit your website. Customer confidence is built by respecting the privacy laws and using data to create better experiences. While your company is trying to navigate the often complicated rules of data management, keep in mind that the ultimate goal should be to offer seamless and secure experiences that earn customer trust.

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