Privacy as a feature: How transparent data practices can actually boost your conversion rates.

We visit so many websites and apps daily, you’ve probably seen a banner or box talking about your privacy, data, and cookies on a daily basis, sometimes several times. While many click these without reading, there are also times when they leave you thinking, “how much permission am I giving to these sites, what are they really doing with it, and am I even still interested at this point?”

Privacy policies and disclaimers are important, but let’s discuss how transparent data practices can actually boost your conversion rates rather than hinder them.

Privacy is becoming more and more important to users, in fact, 91% of Canadians have said they feel some level of concern about how their data is being used. Concerns range from data being used to create marketing profiles, to identity theft, and being used in ways that will affect their lives.

So how can you combat this valid concern?

Clarity over confusion

Think about this: How many times have you read a policy, a terms and conditions, or anything with legal jargon and just felt confused after? While informative, these can be challenging to understand for the average person and can leave you in confusion or with more questions. While these legal documents and disclosures are good to have, it’s important to look for ways to better communicate the purpose of your data practices and why/how they are used. That means using clear and plain language over just legalese.

When consumers have a better understanding of what they’re agreeing to and what it means, they can feel more confident making informed decisions and in using your services or purchasing from you.

Transparency, including in transparent data practices helps build trust and credibility which doesn’t just boost conversion rates once, but over time as well. This is because when someone trusts you, they are more likely to return and to recommend you to others.

Misconceptions about data may be hurting your business

Sometimes, businesses believe that the more data they collect, the better they can personalize marketing for their customers, but sometimes that can feel like it crosses the line into creepy, invasive, or even annoying. You’ve probably looked at something once or talked about it and then saw an ad for it. It feels creepy, doesn’t it?  Here’s another example, instead of saying something like, “We noticed you looking at [item], here are some others you might like,” give users the option to opt-in to personalized recommendations. A simple sentence like, “Would you like to opt-in to personalized recommendations?” can help users feel more comfortable and in control.

Are you doing any third-party  sharing?

Do you share data with a third party? Clearly explain why this data is collected and where it is stored, and shared. 

Think of data practices beyond the scope of legal

Your privacy and data practices are also part of the customer experience, not just a legal document. That’s part of the reason why it’s important to make sure that it’s easy to understand and has options to opt-in and out, and that you’re disclosing third party sharing.

Not only can transparent data practices boost your conversion rates by building trust, it also helps minimize risk.

When was the last time you reviewed your data practices?