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The Enzuzo Blog

Expert growth tips on eCommerce data privacy & trust

Customer experience expectations have rocketed in recent years. Customers now expect personalized experiences and superior engagement from the companies that they hand their money to.

In fact, the latest Accenture Personalization Pulse Check reveals that two-thirds of consumers are more likely to purchase from a retailer that sends relevant promotions and remembers their previous purchases.

To do that, however, businesses are collecting more data than ever before. Data privacy is not only a regulation, it’s now an important part of your company’s overall customer experience (CX) strategy.

The same study from Accenture found that 70 percent of consumers were happy for businesses to collect data as long as the company is transparent about how they use it, with 75 percent reporting that they were happy as long as they had full control over how a company used their data.

An exceptional customer experience, based on personalization and engagement, requires the collection of private information. To make this successful, a strategy must be put in place that improves the transparency of how your business collects and uses that information.

Before we look at how your company can improve the customer experience through data privacy, let’s first take a look at the most important data privacy laws affecting companies throughout North America today.


Data privacy laws your company must keep up to date with

Through the collection of data, it’s likely that your business stores manages and uses the personal information of hundreds, thousands or even millions of customers - depending on the size of your organization.

The usage and storage of that private information is regulated by various laws across North America, but the two most important data privacy regulations that your business should be aware of right now is General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).


General Data Protection Regulation (GDPR)

GDPR is a regulation in EU law that requires companies to provide better protection of personal data.

Since the regulation is an EU law, many companies across North America believe it doesn’t apply to them. However, any business that offers goods or services to individuals in the EU, or even those which monitor customer behaviour in those countries, must comply with GDPR. As a result, many North American organizations are ensuring their data collection and usage standards comply with GDPR.


California Consumer Privacy Act (CCPA)

CCPA came into effect on January 1, 2020, and is designed to give permanent residents of California more consumer protection when it comes to misuse of their personal data.

The regulation gives permanent residents of California the right to; know which personal information is being collected and how it’s being used; delete personal information held by businesses; prevent businesses reselling personal information, and to the non-discrimination of price and service when they exercise the right to any of these privacies.


Why data privacy will improve your CX strategy

Your customer experience is crucial to the success of your company. In a marketplace where a large number of businesses offer the same products and service in any one sector, CX is often the only differentiator between your company and its competitors.

That’s why consumers are often willing to provide companies with personal data, as long they see the benefit through personalized offerings and improved customer experiences.

Too truly form a trusting relationship with your customer, however, transparency about what data is collected from customers and how it’s used is now an essential element of any customer experience strategy.

By ensuring your customers know exactly how your business is using their personal information, you will build a relationship with your customers in which they are happy to share useful, insightful and actionable data. This can then be used by your customer service, marketing and sales team to significantly improve the customer experience and drive profit growth.

Want to learn more about data privacy and how it affects your company? Our team of data privacy experts at Enzuzo would be more than happy to answer any questions you have. Contact us today.


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