[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/08\/the-why-and-how-of-transparent-data-management\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/08\/the-why-and-how-of-transparent-data-management\/","headline":"Customer trust depends on transparent data management. Start today.","name":"Customer trust depends on transparent data management. Start today.","description":"Delivering personalized experiences while protecting consumer privacy is a balancing act. The key is transparent data management.","datePublished":"2021-07-08","dateModified":"2023-08-10","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/emily-kelly\/#Person","name":"Emily Morrow","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/emily-kelly\/","identifier":216,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/e1a6b9e9410da52a3baabbac612ba6017cee3e29053c47dc554eabe78303e0da?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e1a6b9e9410da52a3baabbac612ba6017cee3e29053c47dc554eabe78303e0da?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/07\/Transparent-data-management_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/07\/Transparent-data-management_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/08\/the-why-and-how-of-transparent-data-management\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/","name":"CDP: Customer Data Platform","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data_platform"]},"Consent data management",{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]}],"wordCount":1304,"keywords":["CDM | Customer Data Management","CDP | Customer Data Platform","Consent Data Management","Consumer Trust","Customer Trust"],"articleBody":"Do you ever feel like you\u2019re in a fishbowl, with everyone watching your every move when it comes to handling customer data? Well, it\u2019s because you are. Never before have data breaches, customer privacy, personal private information (PPI), or customer satisfaction been as center stage as they are now.As fines are levied and customers claim their right to opt-out, data management is only going to be pulled more into focus. It\u2019s time to embrace the change and adopt transparent data management.Not long ago, consumers might have noticed the word \u201ccookie\u201d somewhere in their browsing experience, but couldn\u2019t have told you what they were. Not anymore. Recent third party cookie updates from companies like Google and Apple, not to mention any number of data breaches in the headlines, have brought customer data and consent to the top of everyone\u2019s minds.How you handle a data breach or, more importantly, how you tell your customers you are preparing for the threat, is an extension of customer service.\u00a0People are demanding more transparent data management practices, and they\u2019re paying attention to who\u2019s responding. Because, after all, customer experience really shouldn’t include stolen data.      First-party data strategy: Prepping for a cookie-less world                The clock is ticking as third-party cookies become a thing of the past. Is your business ready? We examine best practices for managing first-party customer data.      Consent has joined the room: The business case for transparent customer data management (CDM)Anytime businesses are faced with stricter regulations, there\u2019s an almost knee-jerk reaction to balk at the new guardrails. We have an instinctive reaction of, \u2018But I\u2019m not doing anything wrong!\u2019 treating it as a punishment. It’s understandable, but to move forward we need to leave that indignation behind and focus on the customer.When it comes to CDM, it\u2019s important to look at the bigger picture.The data businesses collect and manage (and, in many cases, sell) is personal and important to their customers. This is a truth businesses need to acknowledge\u2014your customers care about their data more than your marketing, violate their trust and there isn’t an HTML email, sale, or event you can launch that will fix it.To customers, it goes beyond marketing communications or personalization. It\u2019s their identity. And they\u2019ve seen too many cautionary tales to not take it seriously. The opportunity wrapped up in transparent data management is that you can build trust with your customers.\u00a0Get ready to make a plan using best practices.Remember: Customers want to participate in data managementCustomers are not unwilling to share their data. They just want to understand why you\u2019re collecting it, and how you\u2019re going to use it. Help them understand the plan with transparent data management.By embracing new regulations and adopting more transparent, consent-driven data management, you:Demonstrate that you understand the importance of your customers\u2019 data, and take it seriously tooInstill invaluable trust with your customersSet your business up for long-term successAnd it\u2019s not just about building trust (though really, I cannot over-emphasize how important that is). It also makes your business more resilient. Companies who proactively adopt more transparent policies and procedures and show more \u201cmature\u201d privacy practices are \u201cnot as stressed when different governments or countries add new data restrictions.\u201d      GDPR, CCPA, and LGPD: Time for a global consumer data privacy strategy                Companies can do more to protect consumers\u2019 data privacy, and it\u2019s in their best interest to do so. Learn the requirements of GDPR, CCPA, and LGPD.      How to adopt more transparent data managementIn middle school, I was taught it\u2019s more effective to \u201cshow, don\u2019t tell\u201d in my writing. When it comes to data transparency, you need to do both. It\u2019s all about practicing what you preach, and preaching what you practice.Here are three steps to get started with data management that is transparent, sustainable, and valuable for your company and your customer:Connect with your company\u2019s purposeWrite and publish a data management mission statementImplement effective consent management solutionsLet\u2019s take a closer look:1. Connect with your company\u2019s purposeYour company\u2019s purpose should inform everything you do, from writing social media copy to strategic business decisions. It\u2019s part of your company\u2019s DNA.Reconnect with the spark that started it all. What are you here to do? Make your customers’ lives easier? Affect meaningful change in the world? Educate, inspire, help?Now, look at the issue of customer data management through that lens. Using your purpose as your guiding light when making big decisions helps ensure your actions are aligned with your long-term goals.It also helps combat that knee-jerk, \u2018Why me?\u2019 reaction, by expanding your perspective. When you look at new restrictions as things that are going to make your immediate, day-to-day life more complicated, it gets really frustrating really quickly. But when you step back and see those regulations as ways to protect and help your customers \u2013 and you, as a consumer \u2013 it\u2019s a lot easier to get on board.2. Write a data management mission statement and make it publicJust like your company\u2019s mission statement, your data management mission statement clearly and publicly lays out what you\u2019re doing to protect your customers\u2019 data. Writing one may feel like a small step, but it does two important things:It forces your team to align and communicate where your company stands in clear termsBy putting it \u201cout there,\u201d it signals that you are embracing transparency and are willing to be held accountable. Once it\u2019s public, people have something to evaluate your actions against.Your CDM mission statement aligns with the company\u2019s mission statement, as well as any purpose or vision statements you have. It answers the question: How does the way you handle customer data achieve your mission, bring your vision to life, and serve your purpose?3. Implement consent management solutionsWe\u2019ve covered the \u201ctell\u201d category, now, it\u2019s time to \u201cshow\u201d up in your actions. Consent management solutions help you put your customers in control of their personal data preferences, building a foundation of trust. Not only that, they can ensure you\u2019re compliant with any and all data protection laws and regulations.If you\u2019re already considering a investing in a customer data platform, you can look for one that has consent management features baked in. This gives your customers ultimate control, ensuring that if they change their preferences, they will be updated throughout your system \u2013 across every channel and department.Transparent or bust: data management made clearBalancing your customers\u2019 right to privacy with the need to deliver highly personalized experiences that rely on data is no easy feat. The solution lies in transparency.This isn\u2019t news. People have been advising companies to embrace transparency since we started collecting customer data. Just look at this quote from a 2015 article:\u201cCompanies that are transparent about the information they gather, give customers control of their personal data, and offer fair value in return for it will be trusted and will earn ongoing and even expanded access. Those that conceal how they use personal data and fail to provide value for it stand to lose customers\u2019 goodwill\u2014and their business.\u201dBut the stakes have only gotten higher. In order to succeed long-term, you need to be upfront and clear about how you collect and use your customers\u2019 data, and only collect the data you need.By embracing change, and showing that you understand how important your customers\u2019 personal information is, you\u2019ll lay a foundation for lasting customer relationships, and set your company up to be more resilient moving forward.  Build trust.Win loyalty.Grow your business.It starts HERE.\u00a0"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"08","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/07\/\/08\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer trust depends on transparent data management. Start today.","item":"https:\/\/www.the-future-of-commerce.com\/2021\/07\/08\/the-why-and-how-of-transparent-data-management\/#breadcrumbitem"}]}]