Growth, Management, Hints and tips, Small Business
6 reasons your customers will share their data
Posted on by Jo Shaw
Estimated read time: 4 mins
As a business, there are huge benefits to collecting customer data. The better you know your customers, the easier it is for you to market to them.
Customers, however, often feel distrustful when asked to share their data. Reasons for this could be:
- Fear of a data breach
- Fear of being spammed with endless marketing emails, and/or
- Dislike of marketing tactics used
…. just to name a few of their worries1.
So, what factors will affect your customer’s decision to share data with you?
1) Do you need their data?
If your customers understand the specific purpose in asking for their data (and it’s a reasonable one) then they are much more likely to share it with you. For example, a map service on your smart phone directly requires your location to operate, but access to the microphone is further away from the core purpose of the app, even if voice dictation of destinations is a feature.
2) Sharing data is mandatory or the accepted norm
There are some situations when it’s clear that sharing data is essential to complete a transaction. For example, when you apply for a mortgage, you know that information will be required on your income and your spending habits etc. This is accepted as ‘normal’ practice and is so rarely questioned.
3) Everyday value
We all have apps or services that we use on a daily basis and wouldn’t want to be without, whether it be for banking, fitness or social media. If you can show this type of value in your own products or services, then people will be happy to part with their data.
4) For a one-off or significant life event
During a recent Experian study1 into consumer opinion on data sharing, one person talked about the level of extremely sensitive information they shared with BabyCentre about their baby, in exchange for help and support through the early years of parenthood. These types of one-off or significant life events can often be the factor that pushes us to share our data more willingly.
5) The trust factor
Trust plays a huge part in a consumer’s decision to share (or not to share) their data with a business. If you can build trust with your customers by being transparent and showing them that you value their data and will use it ethically, then they will be much more likely to share. Your brand and its reputation is key here so it’s worth the time to build a strong one.
6) The sensitivity of the data
Understandably, the more sensitive the data you’re asking for, the more your customers will hesitate in handing it over. If you’re asking for data that relates to someone’s finances, health, religion or politics, you’ll need to be clear about the value exchange. Explain why you need the data and what the benefit is to them.
The General Data Protection Regulation (GDPR) is almost upon us and with it comes a new age of transparency and customer focus when it comes to data management. This is a time when building consumer trust is key and businesses who are able to do so, will be the ones to thrive.
Download our free guide which takes you through the 6 key elements of the General Data Protection Regulation, how to begin preparations and the opportunities it can present.