Why Data Privacy and Customer Experience Are Not at Opposite Ends
A brand needs consumer data to enhance the customer experience. Brands must simultaneously protect customer data privacy. But in a world where mobile dominates, how can businesses tackle data privacy practically while enhancing consumer experience? Here is an explanation from Thomas Butta, chief strategy and marketing officer at Airship.
The trajectory of customer data privacy is comparable to that of the environment, society, and governance (ESG). Both of them are assuming standard status.
Companies who are open about their ESG initiatives are delivering a clear message to their staff as well as to present and potential clients. Data privacy must be prioritised at the same level. If privacy is managed improperly, brand reputation damage may be more expensive than legal penalties. It’s time for data privacy to be a standard operating procedure for every company as part of a customer-centric strategy.
Any marketing strategy’s foundation and the key to successful online shopping is customer data. But as time passes, we can no longer afford to ignore client needs in favour of mining consumer data. First- and zero-party data are gaining prominence as third-party data becomes less prevalent.
In order to better understand their customers and deliver the individualised experiences they need, brands must increasingly put their attention on building direct digital interactions. The greatest approach to maintain this reciprocal value exchange is through mobile apps, and this is due to shifting consumer behaviour among mobile users.
A Mobile Shopping Report claims that
a new window is opened Eight out of ten respondents who have shopped on their mobile devices in the past year report doing so more frequently than they did two years ago, according to a survey of U.S. consumers. Millennial (77%) and Gen Z (79%) respondents in particular agree with this.
Regardless of where you are in the development of your mobile app, a pragmatic approach to personal data protection is crucial for creating the kind of satisfying, long-term partnerships that businesses and users desire.
Why Now? Why Apps?
For contextual connections, quick transactions, and streamlined experiences that meld their online and offline lives, mobile apps have emerged as the consumer’s top choice. industry analysis
opens a new window reveals that app-wielding clients outperform other shoppers in terms of revenue and transaction frequency by a factor of more than three. The enormous economic worth of mobile app experiences is demonstrated by earnings reports from publicly traded companies:
In the second quarter of last year, The Home Depot’s “sales using our digital channels climbed 12%.” Additionally, our mobile app had record downloads, traffic, and purchases. As a result of continued improvements made to our digital assets, we continue to experience higher conversion rates.
Incredibly, Chipotle’s full-year digital sales of $3.4 billion were roughly 3.5 times more than they were in 2019. Due to its convenience and lack of friction, digital has demonstrated its ability to stick.
These kinds of successes do not just happen by having an app and working hard. Brands are aware that the customer experience drives their competition. By closely tying together loyalty programmes, always-on utilities, digital exclusives, and concierge services, many are making apps their most valuable brand assets. What lies at the heart of all these connections? The data. Added information
Chipotle estimates that it takes an average of 10 minutes from the time a customer places a digital order until their food is ready for pickup thanks to investments in digital kitchens and “Chipotlanes” (digital-only pickup lanes). Digital sales are up 3.5X from before COVID. Due to the fact that many of its outlets were inside shopping centres early in the epidemic, American Eagle Outfitters found novel solutions to curbside pickup problems. They implemented trip-tracking and order-ahead technologies that improved consumer and retail experiences.
These impressive economic returns should not be surprising. “Forrester’s Customer Experience Index (CX Index™) data shows that companies that deliver superior CX grow revenues five times faster on average than their competitors with inferior CX. Companies with superior CX have customers who are willing to pay a higher price for products and services,” (Forrester Research, Inc., Transform Customer Processes And Systems To Improve Experiences, February 22nd, 2021).
Simply put, apps are where the value exchange between customers and brands is most respected and rewarded. Ahead of more traditional information like postal address or demographics, customers are more likely to share “interests relevant to a brand,” “their communication preferences,” and “what they have browsed on a brand’s app or website,” to receive personalized offers and special incentives. On the flip side, consumers are least likely to share “information from their social profiles” and “their behaviors across unrelated websites and apps.” As I said earlier: mind, do not mine customers.
This is actually great news all around. People (like us) want a much more customer-centric approach. They are willing to share valuable information in exchange for mobile-enabled conveniences and personalized services, which in turn, allows brands to serve them better and build valuable relationships over time.
What’s the hold-up, then?
As a concept and a collection of best practises, mobile app experience (MAX) is still very much on the cutting edge, according to survey results. Many businesses struggle to organise resources and use agile techniques to maximise the value of mobile apps.
Brands must be aware of their audience in order to create moments across touchpoints, including platforms, devices, and channels, that customers engage with across their various journeys. This will improve the customer experience.
Chipper Cash, a fintech business, adopts an app-only strategy rather than physical locations to break down financial barriers in Africa. The company was able to service 5M app users in five geographies and hit $1.5B in total processes every quarter because to personalization at scale.
Experience is more important than promotion, thus brands should offer worthwhile experiences when customers are using the app. The near-total reliance on development and message by marketers must end. To continuously improve onboarding, feature adoption, and opt-in flows and gradually learn about the interests and preferences of each customer, they require both no-code capabilities and organisational agility.
The entire team is empowered with a platform for no-code app experiences. The following collection of cutting-edge, market-distinctive app features will be the focus of the developers. Additionally, the marketing and product teams for the app take greater responsibility for the customer’s mobile app experiences. It all revolves around enhancing the quality and productivity of life after downloadTM.
Consider your app’s messaging as a series of invitations you personally extend. Make sure customers are aware of the benefits. Make sure they are aware of the precise uses and non-uses of their data. Go where they are at. That is how trust is developed.