Consumer data is critical for a brand to improve customer experience. Simultaneously, brands need to take care of data privacy. But how can companies take a practical approach to data privacy and improve customer experience in a mobile-first world? Thomas Butta, chief strategy and marketing officer, Airship, explains it here.

Customer data privacy has a trajectory similar to environmental, social and governance (ESG). They are both becoming table stakes. 

When companies are transparent about ESG initiatives, they are sending a strong message to their employees as well as current and future customers. The same level of prioritization must be done for data privacy. If privacy is mishandled, the hit to brand reputation could be costlier than regulatory fines. It is time for data privacy, as part of a customer-centric strategy, to become a standard operating procedure for every business.

Customer data is the backbone of any marketing strategy and the linchpin of ecommerce. But today, we are seeing the clock run out on mining consumer information versus minding customer needs. As third-party data dwindles, first- and zero-party data are taking center stage.

Brands now have an imperative to focus on creating direct digital relationships to understand their customers better and provide the personalized experiences they expect. And thanks to changing behaviors of mobile consumers, the best way to sustain this reciprocal value exchange is through mobile apps. 

According to a Mobile Shopping Report, 68% of surveyed U.S. consumers say they are shopping more often now with their mobile phones than two years ago, with eight in 10 mobile shopping within the last 12 months. This is particularly true among Gen Z (79%) and millennial (77%) respondents.

No matter where you are on your mobile app journey, a practical approach to personal data privacy is essential for building the kind of profitable long-term relationships that brands and customers want.

Why Apps, Why Now?
Mobile apps have become the consumer’s preferred destination for contextual interactions, fast transactions, and streamlined experiences that blend their online and offline lives. Industry research finds that app-toting customers generate more than three times greater revenue and transaction frequency than other shoppers. Earnings reports from public companies underscore the tremendous economic value of mobile app experiences:

• For The Home Depot, “Sales leveraging our digital platforms increased 12% versus the second quarter last year. We also saw record downloads, traffic in sales via our mobile app. We continue to see improved conversion rates, as ongoing enhancements within our digital properties are resonating with our customers.” 
• For Chipotle, “Incredibly, our full year digital sales of $3.4 billion is nearly 3.5x what we did pre-COVID in 2019. Digital has proven to be sticky as it is a frictionless and convenient experience.”

Successes like these are not simply a matter of having an app and persevering. Brands know they compete primarily on customer experience. Many are making apps their most valuable brand assets by tightly linking loyalty programs, always-on utilities, digital exclusives and concierge services. At the core of all these relationships? Data. Data. And more data.

Chipotle has invested in digital kitchens and “Chipotlanes” (digital-only pickup lanes) and now cites an average of 10 minutes from a customer’s digital order until it is ready for pickup. Its digital sales are 3.5X pre-COVID. Early in the pandemic, American Eagle Outfitters solved unique curbside pickup challenges because many of its locations were inside malls. They added trip-tracking and order-ahead features that streamlined experiences for both customers and store associates. 

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. 

Then What’s the Hold-Up? 
Survey results show that mobile app experience (MAX), both as a concept and set of best practices, is still very much a frontier. Many companies struggle to marshal resources and apply agile methods to generate greater value from mobile apps.

To optimize customer experience, brands need to understand whom they are talking to and create moments across touchpoints, including platforms, devices and channels that customers engage with throughout their various journeys.

Fintech company Chipper Cash focuses on unlocking financial barriers in Africa through its app-only approach instead of brick-and-mortar branches. Personalization at scale helped the company serve 5M app customers in five markets and reach $1.5B in total processes per quarter.

Experience trumps promotion, which means brands should be providing valuable experiences in moments people are engaged with the app. Marketers must be empowered to go beyond messaging and near-total reliance on developers. They need both no-code capabilities and organizational agility to continually optimize onboarding, feature adoption, and opt-in flows and progressively learn about the interests and preferences of each customer. 

A no-code app experience platform empowers the entire team. Developers get to focus on the next set of innovative, market-differentiating app features. And the app’s marketing and product teams gain more ownership over the customer’s mobile app experiences. It is all about making life after download^TM more rewarding and productive.

Think of communications around your app as a series of personal invitations. Make sure customers know what is in it for them. Make sure they know exactly how you will and will not use their data. Meet them where they are. That is how you build trust.

The post Why Data Privacy and Customer Experience Are Not at Opposite Ends appeared first on Airship.

If you have responsibility for improving the quality of customer data and customer experiences with your brand, the principles discussed in our new eBook – Practical Privacy: 8 Privacy Principles and Practices for Building Better Mobile App Experiences – will help you focus on what matters most.

Here’s a preview:

1. It Takes Two to Tango – Ask your Chief Information Security Officer (you have one, right?) to share the main thing that keeps her awake at night when it comes to data privacy. Make sure you both know where your mobile app fits in the overall privacy picture.
2. It’s Not About You – Think of communications about your app as a series of personal invitations. Make sure customers know what’s in it for them. That’s how you build trust.
3. Bring In Your Lawyers Early and Often – Make sure you and your company’s privacy team are on the same page throughout any data initiative, not just at the end when you’re trying to get the go-ahead to act. They’ll appreciate being involved, and you’ll be more likely to get what you need, when you want it. It all adds up to more value for the business and your customers.
4. Don’t Get Pushy – Make sure your app offers a cross-channel preference center, so customers have an easy way to tell you what they want. And what they don’t want. It should be just as easy to opt out — or preferably opt down — as in to opt in across all your channels.
5. Mind the Power Shift – Data regulations and platform enhancements are undercutting the value of third-party data. Ask your privacy teams for a detailed plan for operating in a world where first-party and zero-party data matter most, and take proactive actions to ensure your success.
6. Don’t Hide Your Brand’s Value – It’s not enough to talk about your values. You have to show customers in real and tangible ways what your brand stands for. Make values a salient part of your mobile app experience.
7. Great Mobile Apps Need a Great Technology Platform – Get on your mobile app and see how easily (or not) you can: opt-in to granular choices, designate certain channels for specific communications, and provide feedback beyond app store ratings. If your app isn’t up to snuff, get it fixed.
8. Do What You Promise – Tell the truth, the whole truth, and nothing but the truth.

We hosted a webinar about “Practical Privacy: 8 Privacy Principles & Practices for Building Better Mobile App Experiences” last week, check it out to learn more.

The post How to Get Practical With Privacy appeared first on Airship.

When it comes to sharing, consumers may be quick to opt out
In what has become a new customer-centric era, consumers have more control than ever over their data and will shun brands that do not meet their needs.

Beginning with the release of iOS 15, Apple allows consumers to restrict when and how often they receive notifications. This release also offers optional email address and IP address anonymity, as well as blocking email tracking pixels. Before an Apple iOS user has even downloaded an app, privacy labels disclose its data collection practices. Once the user has the app, a new App Privacy Report will detail how often it requests access to sensitive information, and where that information is being shared.

Likewise, Android 12’s new privacy dashboard “offers a single view into your permissions settings as well as what data is being accessed, how often and by which apps. It also lets you easily revoke app permissions right from the dashboard.”

These changes are a huge win for consumer privacy, but they also mean brands must adapt to a new customer-first era as people become more selective about the information they provide to brands and how, when and where they want to interact.

A key element to retaining app users is giving them user-level control over their data and how they prefer to interact with a brand. Airship’s survey found that consumers are more likely to opt in to brand communications if they have control over the reason (43%), frequency (41%) and channels (40%) with which brands engage them. Conversely, the inability among app users to control the frequency and relevance of messages received are the top reasons app users opt out. Across all countries, the most common reason for opting out of a brand’s smartphone communications was receiving too many messages too often (51%). The second most common reason was “Information not relevant/personalized to my needs” (40%).

Just because you have something you want to say…
Just because you have something you want to say doesn’t mean your customer wants to hear it. Consumers today are more aware of their data rights than ever, and they’ll engage freely with brands that respect their privacy, satisfy their needs and deserve their attention. The converse is also true. Make the wrong move – either through a technology glitch or a fumbled communication – and you can expect to be ignored, silenced or deleted.

Make sure your app offers a cross-channel preference center, like Airship’s AXP Preference Center, so customers have an easy way to tell you what they want. And what they don’t want. It should be just as easy to opt out — or preferably opt down — as opt in across all your channels. Airship’s in-app Preference Center is the only one on the market that covers all communications channels and preferences.

Learn more by watching our webinar: 8 Privacy Principles and Practices for Building Better Mobile App Experiences.

The post Don’t Get Pushy: Adapt to the Mobile Privacy Evolution appeared first on Airship.