It is impossible to be involved in the marketing or customer loyalty industry today and not be inundated with data. Data and analytics form the foundation for gathering and understanding the consumer insights that make customer experience personalization and relevant marketing possible. Data is crucial in this respect, and when in the hands of experts, data can become a powerful customer engagement tool.
This new frenzy over collecting data does, however, also come with a downside. For one, many brands now have too much data. Secondly, customers are unaware of how their data is being collected and used. This can erode trust, which is a surefire way to destroy customer loyalty.
In order to address these growing concerns, the Council of Europe gathered again yesterday for European Data Privacy Day to raise awareness over the issue of data privacy. This was its 9th meeting and the goal was to advance a customer engagement strategy that emphasized a data-driven business model that centered on data privacy and consumer trust.
In fact, the Council of Europe argued that data privacy is actually a competitive advantage.
It is true that data is an essential driver in most modern digital business models today. Truly personalized customer experiences are not possible without it. But rather than only seeing it as a means to optimize marketing and promotional targeting, brands do still have a responsibility to their customers, to manage data in a sensitive and secure manor.
It is also important to note that this high level of data privacy is not just about abiding by regulations in order to stay out of trouble, a proactive approach to privacy can actually help build customer loyalty and trust.
Council of Europe stated that, in many European countries, “trust is the basis for business success.” This is especially true in Germany, for example, which has a strong awareness of data privacy due to events like European Data Privacy Day. According to the Ponemon Institute, which conducted a study in 2015, 50% of German consumers only share data with companies they trust.
This type of trust, however, is not only confined to German consumers. People everywhere want to build trusting relationships, and the brands that can accomplish this will also build long-lasting customer engagement in the 
process.
During yesterday’s European Data Privacy Day, the Council of Europe offered two main ideas for all brands to keep in mind when managing customer data.
The first is Transparency. In this respect, brands should publically declare and clearly detail what data is being collected, what it is being used for, how long it will be saved, and who it will be distributed to. This also includes educating consumers on their rights regarding their personal data. Simply put, the more transparency brands can generate, the better.
The second was centered on Creating an Understanding of Added Value. This concept can be summed up in a simple question. No matter how trustworthy an organization may be, why should consumers give their data if they receive no benefit in return? Offering consumers real value in the form of personalized engagement, special promotions, relevant experiences and friendly interactions should always be top of mind for brands.