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Trusted Brands Are Able to Harness Valuable Consumer Data: Here Are Tips to Help Brands Get More Personal—and Get More Data

Pr, Marketing, Public relations, Customer experience, Identity management, Janrain, customer loyalty, brand trust, consumer data, customer expectations, customer identity, sharing data with brandsCustomer identity and access management firm Janrain recently announced the results of a new survey that explores on what terms U.S. consumers will share their personal data with brands. The survey found that brand trust is the biggest requirement or prerequisite for persuading users to share their data, and more effective than special offers or discounts.

For 86% of those surveyed, the best way to create and maintain that trust is to provide “positive” customer experiences. Aside from knowing they will be treated well, consumers said compelling loyalty programs (74%), philanthropic activities (63%) and robust online communities (50%) are ways brands can build confidence with them.

“With access to personal data, brands can create a virtuous cycle that results in significantly greater customer loyalty,” said Jamie Beckland, vice president of product at Janrain, in a news release. “The knowledge that comes with this information can be used to improve user experiences and drive deeper engagement, which in turn helps companies build out more complete customer identities. Identity management is key to improving the customer experience, and the enhanced understanding of the customer leads to increased consumer trust—a win-win proposition for both customer and brand. But without access to personal data, brands can’t deliver on customer expectations.”

Retaining Loyalty Is Just as Hard as Earning It

Missteps can hamper brands’ ability to preserve their customers’ comfort level with them. Honesty, transparency and authenticity are very critical in developing a good rapport with consumers—false advertising was cited as a significant destroyer of trust by 87% of respondents. Data security is also paramount to consumers, with three quarters citing breaches as having a significantly detrimental effect on brand trust. Investigations of wrongdoing (74%) and product recalls (63%) also greatly erode trust in the customer’s eyes.

Once trust has been earned, marketers should be aware of rules of engagement for obtaining and using customer information. If customers don’t know up front which data brands intend to collect and how they plan to use and share that data, they will not share personal information. According to the survey:

  • 78% of consumers are likely to share personal info when they retain control over how a brand communicates with them (e.g., text, email, etc.)
  • 71% are comfortable sharing info when the brand promises not to share the data with third parties
  • 62% feel more comfortable sharing data when the brand promises not to contact friends in their network

How to Get Customers to Register

Aside from assurances of control over how personal data is shared, brands need to embrace the “give-to-get” concept when it comes to getting customers to engage with them more deeply. Discounts are the most popular incentive to get people to register with a site (62%), while loyalty points (47%) also proved to be attractive to prospective registrants. Information and community engagement can also motivate a smaller segment of people to share their data. Twenty-eight percent will register to sign up for a newsletter, while others will exchange data in order to post a rating or review (36%), adjust preferences (27%) or comment on an article (23%).

Offer a free product and consumers will be willing to do plenty for a brand, including:

  • Visit a brand’s website (76%)
  • Watch a video (67%)
  • Like a brand’s page (47%)
  • Share/mention a brand’s post/page (24%)
  • Check into a location via a social media website (23%)
  • Refer friends (22%)

Perhaps not surprisingly, 18-to 29-year-olds are much more likely to interact in social media communities on behalf of a brand—39% would watch a video, 37% would consider “liking” a brand’s social media page, and 23% would share or mention a brand’s post or page.

Download the full report here.

Source: Marketwired; edited by Richard Carufel

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