Question

Customer relationship management systems hold great promise, but their usefulness is determined by the amount of personal data customers are willing to divulge. How can companies encourage customers to share useful personal information?

Answer 1

Personal data of customers is very important and essential for marketing success and brand growth. But, gaining access to such personal information is a huge challenge. Customers are worried about their personal information being misused or sold to other parties. In addition, they are also concerned about the safety and security of their personal data, with the growing problem of identity theft. However, companies can encourage customers to share their useful personal information in the following ways :

1. Improve transparency around privacy policies and terms & conditions to build trust with the customers.

2. Provide clear explanations of how the company protects the privacy of its customers' data.

3. Provide 'opt-in' facility when asking for personal information, as it demonstrates that the company values its customers' privacy.

4. Ensure that customers get something valuable in return for their data in the form of incentives like free shipping, reward points or limited time offers.

5. Boost the brand loyalty by promoting company culture that connects with customers' personal beliefs.