1. Building trust with customers begins with transparency
Customers know that businesses are collecting their data for the purpose of giving them personalized experiences. Some customers are more comfortable with sharing data than others, however. For example, customers ages 18-34 are more likely to freely share their personal information, while customers ages 45-65 are more likely to recoil from the idea of doing so. That said, 64% of all customers disapprove when brands use third-party data, especially when this happens without their informed consent.
For this reason, transparency is key to building trust with customers when using third-party data. Most respondents (52%) said they would continue dealing with a brand even after learning that it had obtained data without their consent—as long as the brand acknowledged what it was doing. A quarter of them would insist on knowing the identity of the third-party source, while 15% of them would demand that the brand promise to stop using third-party data altogether.
These findings indicate that customers increasingly desire to have informed consent as well as a certain measure of control over how their data is used. They want convenient and satisfying customer experiences, but they don't want to give brands the power to use their data in any way they see fit.
Offering customers some control over the depth of analytics that the company applies to their information (by providing opt-ins, for example) is one effective way to build trust. And it's a positive step toward creating a customer-centric culture.