Essence

• Marketing based on trust. Embracing data transparency builds consumer trust, leading to greater brand loyalty and longer customer relationships.
• Empower with consent. Giving customers control over their data preferences empowers them and aligns your brand with values ​​that prioritize privacy.
• Use data first. Using data transparently for personalized experiences shows respect for consumer privacy while driving engagement.

With news of data breaches seemingly increasing by the day and consumer privacy concerns at an all-time high, brands are rethinking how they source, use and store customer data. Consumer trust is a delicate and valuable entity for brands. To earn it takes time, patience and consistency. Loss can happen in an instant.

Consumers hold brands to a higher standard, expect transparency, respect and consent when it comes to their personal information. Today’s consumers are more data-conscious, have higher standards, and can easily switch brands if their expectations aren’t met. The challenge (and opportunity) for brands is to build a long-term strategy that places trust – supported by data transparency and consent – ​​at the heart of marketing.

Evolving Privacy Concerns: Why Data Transparency Matters

EU General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA)applied in 2018 and 2020 respectively, were created to protect the privacy rights of individuals in the digital age, where large amounts of personal data are collected, managed and processed by companies. Both laws came about in response to growing concerns about how personal data is being used, often without people’s knowledge or consent.

Brands have responded accordingly, with many proactively implementing their own privacy policies closely aligned with or consistent with these laws as a gesture of their commitment to consumer data safe. But the dynamics at play go far beyond regulatory compliance and tell a larger story about using trust to build brand loyalty.

Trust is the foundation of modern marketing. By adhering to consent-based frameworks and regarding their data policies, brands can position themselves as privacy advocates – which can be a differentiator in a consumer’s choice to support that brand. According to a 2023 study by McKinsey, 71% of consumers are more likely to buy from brands they believe are transparent and responsible in the use of data. Furthermore, Cisco’s 2023 Data Privacy Study found that 92% of consumers believe businesses need to do more to protect their privacywhile 61% have abandoned an organization because of its data practices.

Consumers want data transparency, and marketers should listen

The acceleration of digital transformation over the last decade has fundamentally changed the way companies interact with consumers. With every app download, website visit and e-commerce transaction, personal data is exchanged like currency. According to a recent Blis poll, nearly a third of Americans (31%) are they don’t want to give out their email or phone number to access a publisher’s website, and another 38% can share their data but find being forced to do so invasive. For marketers, the message is clear: Relying on outdated tracking and targeting methods will no longer suffice.

Maintaining effective targeting and collecting customer data while prioritizing user privacy has become essential. In response to this, marketers began to change their strategies. Contextual advertising is one such adaptation. With this approach, marketers target ads based on the content a consumer sees, rather than tracking their activity across multiple touchpoints. Most importantly, this method does not rely on cookies and preserves consumer privacy.

It is a primary data world

While some consumers may be hesitant to provide personal information such as email addresses and phone numbers without third-party cookies, raw data has become even more valuable. By collecting zero-party and data from the first part from consumers through website visits, newsletter signups, surveys and customer loyalty programs, marketers build strong, direct relationships with consumers.

As Google’s moves on third-party cookies continue to be fluid, primary data is the gold standard because it gives companies the ability to create detailed customer profiles without relying on external tracking, and consent is already secured. Using first-party data for personalized marketing increases customer lifetime value where third parties cannot.

Data transparency has evolved into a strategic imperative rather than a regulatory checkbox. Clear communication about data collection and use can be a differentiator, allowing brands to engage customers based on trust rather than simple compliance. When brands are open about their use of data, it reinforces a sense of shared values ​​that can drive deeper emotional connections. Therefore, data transparency is not only a risk-reducing factor, but also a potential loyalty booster.

Related Article: The role of data privacy in customer trust and brand loyalty

Empowering consumers through consent

In the past, consent was often treated as an afterthought or, worse, a perfunctory acknowledgment at the end of a form. The introduction of global privacy regulations has forced a reassessment of this approach, but regulatory compliance alone is insufficient to meet consumer expectations. True consent is more than a formality; it is an expression of respect and empowerment for the consumer.

For this to work, consent must be treated as an ongoing conversation, not a one-time transaction. Today, the best marketers are giving their customers more granular control over how their data is used. For example, they may allow users to opt-in to different types of data collection (eg, analytics, advertising, personalization) instead of offering a blanket opt-in.

Similarly, forward-thinking companies are also adopting more user-friendly interfaces consent management. These interfaces provide clear explanations of what the data will be used for, giving consumers easy ways to change their preferences.

Related Article: Customer trust: the backbone of the digital age

The wheel of trust and loyalty: Delivering value in exchange for information

Consumers are increasingly open to sharing personal information, but only when there is a clear value proposition (eg, exclusive offers, personalized offers, next-level personalization, discounts). Marketing is a two-way street. When companies give consumers what they want, not just what they need, they can reap the benefits. However, this dynamic depends on transparency and trust; consumers must perceive that the brand’s use of their data will improve their experience. This value exchange drives long-term growth and retention for brands that prioritize customer-centric strategies.