Nixon Digital

How Data Privacy Leads to Greater Consumer Trust

Data privacy is a crucial and widely discussed topic, especially when large companies face issues related to privacy compliance. Visitors to your website expect their personal information to be treated respectfully, and laws have been established to safeguard their rights. As data breaches and identity theft incidents continue to rise, businesses must prioritize privacy and gain customers’ trust.

In this blog, we will explore data privacy, its significance in establishing consumer trust, and how Nixon Digital can assist you in achieving these goals.

What is data privacy?

Data privacy is about individuals controlling their personal information, including when, how, and with whom it is shared. Personal information includes your name, location, contact details, and online activities. Many people using the internet want to have control over their data.

As more and more people use the internet, data privacy has become increasingly important. Websites, apps, and social media platforms often need to collect and store personal data to provide services. However, some apps exceed users’ expectations regarding collecting and using data, resulting in less privacy than users anticipated. Businesses that don’t prioritize protecting the personal data they collect can lead to data breaches. Don’t forget to read what the most important trends are if you’re interested in data privacy.

What is consumer trust?

When building consumer trust, there are certain key factors that businesses must keep in mind. One of the most important factors is ensuring customers feel safe and confident when dealing with your business. You can achieve this through various means, such as keeping your promises, following the rules, and treating customers respectfully and fairly. Of course, building trust is not something that happens overnight – it takes time and effort to develop a reputation as a trustworthy and reliable business. However, by consistently demonstrating your commitment to customer satisfaction and ethical business practices, you can earn the trust of your customers and enjoy long-term success. So, to build stronger relationships with your customers, start by focusing on the fundamentals of trust-building and work hard to establish a reputation as a business that customers can count on.

Examples of trust signals on a website

Implementing trust signals is imperative to guarantee the responsible handling of visitor data on online platforms. Building trust is an essential element of B2B marketing. Comprehending the different types of trust signals and their appropriate usage is crucial. Below are some examples that you should consider.

Cookies: When it comes to cookies, it’s essential to prioritize data privacy best practices. It means being transparent about the cookies used and obtaining user consent. Websites that allow users to manage their cookie preferences, including opting out or deleting cookies, demonstrate a commitment to data privacy and build trust with their audience. Learn more about our blog post on how to validate cookie consent management.

SSL (Secure Sockets Layer): As for SSL, it’s a crucial protocol that enables secure communication between users and websites. To identify websites encrypted with SSL, look for “HTTPS://” and a padlock icon in the address bar. It ensures that data transmitted between the user and the website remains encrypted and protected against interception by malicious entities. Implementing SSL certificates is a visual indicator that a website prioritizes secure connections and safeguards user data, such as passwords, financial details, and personal information.

Advantages of a trusted website

Trust provides personalized experiences: Customer trust is the key to personalization. Your customers expect personalized experiences. Customer experiences can only be customized when you can access their data, which you can only collect when your customers trust you. When a company misuses, shares, or sells personal data, the relationship and trust are as good as over. It takes a lot of effort to regain users’ trust.

Encourage loyalty: Loyalty goes hand in hand with commitment and ambassadorship. When customers believe your company is constantly improving and striving to provide the best experience, they will act as ambassadors for your brand, products, or services. Not only will they keep coming back, but they will also spread positive word of mouth.

Making connections: Cultivating trust is worthwhile because it leads to better relations. Brand loyalty is no longer just the goal of repeat purchases from a company; it has become more of a meaningful relationship. Khoros reports that 41% of customers consider ‘’brand loyalty’’ to involve an emotional attachment to the brand.

Why is data privacy important?

Privacy is a fundamental right, and data protection laws exist to safeguard that right. Data privacy is important because when people use the internet, they must trust that businesses will handle their personal information carefully. Companies use data protection to demonstrate to their customers and users that they are reliable and can be trusted with their information.

When personal data is protected and individuals have control over their personal information, it can be used in many ways. Here are a few examples:

  • Cybercriminals can use personal information to defraud other users.
  • Personal information can be sold to advertisers or third parties without consent, leading to unwanted user advertising.
  • When someone’s activities are tracked and monitored, it can limit their freedom of expression, especially in repressive regimes.

The consequences of privacy breaches can harm individuals and damage businesses’ reputations, resulting in fines, sanctions, and legal repercussions. However, by complying with privacy regulations, companies can build trust with their users, improve brand reputation, and ensure long-term success.

Trust around third-party cookies.

When you access a website, there is a possibility that external businesses may put third-party cookies on your device. It is important to note that cookies on your website may originate from multiple sources, YouTube, Vimeo, Google Analytics, Screaming Frog, and more. As a website owner, you are accountable for all activity and data on your website. According to the GDPR, placing third-party cookies without users’ explicit consent is prohibited. These cookies cannot be loaded until the user gives permission.

As a user, it is optional to use third-party cookies. They are primarily used to ensure website functionality or generate revenue through advertisements. Therefore, it is advisable to restrict their usage to only when required, such as with Google Ads or TikTok pixels.

To further explain, third-party cookies are cookies placed on a user’s device by a domain other than the one the user is visiting. Cookies like these track users’ activity across various websites and can be used to create a profile of their browsing habits. This profile is then used to personalize targeted advertising. This raises concerns about third-party cookies as users’ data is shared without their knowledge or consent. It’s important that we are aware of this and have given consent before our data is shared.

Zero-party data helps in building consumer trust.

Zero-party data is a new trend in data privacy, as it changes how businesses collect and use consumer data. Zero-party data is data that consumers voluntarily share with companies. This means when they fill out a form or participate in a webinar, they permit businesses to collect data directly from them. The type of data obtained from consumers through their consent differs from that acquired from third-party sources like cookies or social media platforms. The critical distinction is that consumers explicitly consent by completing a form and checking the “I agree” button, allowing their explicit data to be shared.

With increasing concerns over privacy compliance challenges, businesses must rely on something other than third-party data like they used to. That is where zero-party data helps firms. It allows them to collect information directly from consumers who consent to share personal data. By collecting this data, businesses create personalized experiences for their customers.

However, getting trust is all by being transparent about how data is being processed and giving them control over their data; you can create a bond between your brand and customers.

How to ensure compliance?

If your business deals with customer data, it’s essential to prioritize data security and compliance. We have discussed compliance in previous blog posts, so check them out. Here are a few simple ways to ensure compliance:

  • Use security measures like encryption, firewalls, and access controls to protect customer data from potential threats.
  • Train your employees on handling personal data to ensure they understand how to handle it correctly.
  • Stay updated on the latest data privacy laws and regulations.
  • Conduct regular audits to ensure your compliance practices are current.
  • Foster trust with your website visitors by being transparent about how you handle their data, why you use it, and who you share it with.

Remember that you are working with sensitive and personal data, and it is crucial to handle it with care.

Ensure your customers so that they can trust you!

Businesses can gain valuable insights into their audience by prioritizing data privacy and using zero-party data collection methods. This, in turn, enables them to provide a personalized experience and build lasting relationships with their customers. Our services can help you take control of your website portfolio, streamline your team’s workflow, achieve compliance, improve website effectiveness, and maximize security risks. Book a demo to chat one-on-one about how Nixon Digital can assist your business. Our OneTrust consulting service offers enterprises privacy, security, and data governance solutions tailored to their needs. We provide design, implementation, configuration, and customization services for end-to-end privacy, data protection, and third-party risk management. Our partnership delivers a modular platform that supports global privacy, security, data governance, ethics, compliance, third-party risk, GRC, and ESG initiatives.