Personalisation in a brand’s marketing efforts today can get a bit tricky at times. Customers want to be seen, expecting brands to know what they like and what they don’t. They want companies to know their purchase history, and bonus points if they guess what the customer might need next.
But at the same time, customers are becoming acutely aware of how their data is collected and kept. So yes, they do want bespoke interactions but they also want transparency in knowing that their information isn’t being misused.
It does create a bit of a challenge for modern businesses. How does one deliver tailored experiences without crossing the line and becoming too intrusive? And more importantly, design a CRM strategy that can strengthen trust instead of undermining it?
The Need For Personalisation In Modern Marketing
Why does personalisation matter so much in marketing? The simple truth is that people will pay attention to experiences that are relevant to them. And more brands are leaning into personalisation because they can see the clear benefit of it.
First and foremost, tailored experiences make customers feel valued. When they feel understood, they’re more likely to stick with your brand long-term. Which means that personalisation also directly impacts revenue. It increases your conversion rates because when you show a customer what is relevant, they want to purchase it.
Of course, it also gives brands a competitive edge. Those who are offering unique customer journeys are building customer loyalty while those who don’t run the risk of being forgotten about.
But none of that matters at all if a customer feels like their privacy is being violated.
Why Has Privacy Become So Important?
How often do you read the news and see an article mentioning a data breach or leak? It’s a very common occurrence these days, affecting even some of the most well-established companies. As a result, customers are constantly urged to protect their information.
Customers are more informed: In the past, cookies and data storage may have been a grey area. But now, customers are more educated and are fully aware of the risks of sharing their personal info.
Stricter data regulations: In the UK and Europe, the General Data Protection Regulation (GDPR) is cracking down on laws, with heavy penalties for violations.
Trust is everything: Any company that mishandles its customers’ data could lose them all almost overnight. If there’s no trust with the customer, the company has nothing.
How To Balance Personalisation And Privacy In CRM Strategies
Customer Relationship Management (CRM) systems are mostly built on data. Without it, brands wouldn’t know what their customers want, what they have or what they aren’t interested in and so on.
But the combination of customer expectations and privacy laws means there is a limit on just how much data can be collected and how it’s ultimately used.
Some of the best CRM providers include:
Begin With Transparency
It’s up to you as the company to make sure your customers know upfront and explicitly how their data will be used. That includes why you collect it, how long you keep it for and who has access to it other than you.
If your customer understands the value exchange behind it and it allows for personalised offers, they will be more open to sharing it.
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Only Collect What You Need
It’s not necessary to collect as much data as humanly possible. In this case, it’s quality over quantity. If the data can directly improve the customer experience and have a clear benefit to the customer, it’s worth keeping.
Otherwise, your CRM becomes overloaded with irrelevant data and the more you keep, the more legal implications there could be down the line.
Recognise Consent As The Foundation
Consent allows a trusting relationship to form between a customer and a company. Make it easy for your customers to opt-in to personalised marketing with clear options to opt-out too. Let them choose their preferences such as how often they want to receive offers from you.
The more control they have, the comfortable they will be to share information.
Allow Customers To Access Their Data
It’s becoming more common for privacy laws to require that companies share the data they have if a customer requests it. Customers should be able to update the info themselves and have an option to delete it if they wish.
It makes them feel like a part of the process, rather than just handing over information without knowing what is kept.
Keep Your CRM System Secured
If someone were to hack into your CRM system, a lot of customer data would be at risk of being leaked. Since privacy and security go hand-in-hand, make sure you have the necessary security measures in place to avoid this from happening.
Role-based access, regular system audits, encryption and two-factor authentication are all ways to make sure that only authorised parties can access your customers’ data.
