Consent Management: better customer relationships – beyond pure compliance

As digitalization and innovations change the way individuals and organizations interact, our generation is facing new concerns regarding digital engagement. Many discussions are taking place on how to expand digitalization, and at the same time, protect the privacy and dignity of individuals and organizations. This has become one of the biggest challenges for companies.

Several national and international authorities introduce laws regulating how companies must engage their customers. Also, a new, global culture is forming that defines digital etiquette in the new digital world.

Rules and legislations on data privacy and communication permissions can differ by countries, regions, or provinces, while the level of maturity in consent governance also varies a lot. Some rules become “de-facto” very fast for the customers. Currently, it is the EU’s General Data Protection Regulation (GDPR), that is probably the most widely accepted Consent and Data Privacy Legislation, and it affects not just the EU countries, but any company from outside the European block who wishes to do business within the EU should adhere to these rules and regulations.

What should be your key focus in consent management?

As per the legislation, companies must inform customers on who is the data processor, what is the purpose of data processing and how can they modify or withdraw their consent.

Changing market environment is a household expression nowadays, and we see frequent changes in data protection requirements as well. So, companies need to make sure that they implement a consent management system, that offers flexible configuration options, allowing rapid adaptation to new legislations and policies.

An omnichannel approach has to be applied for consent management as well, meaning that all customer contact points should be covered, and customers should be able to provide, modify or withdraw their consent on any channel, at any time. This also means, for example, that for modification or withdrawal, they should be able to use channels that are different from the channel that the original consent was given on.

Consent management to improve CX?

Consent management is sometimes considered as a burden, both from the companies’ and from the users’ perspective, with the need for ticking all the boxes, signing all the consent forms, keeping everything up-to-date and in line with the latest legal requirements, etc. However, operating a transparent, easy-to-use consent management system and an up-to-date consent database can benefit both sides.

Besides the obvious – that is, companies do not have to pay huge penalties for not complying with data protection regulations -, there are some other benefits here for everyone.

When companies have a well-maintained, up-to-date database, and transparent consent processes, they can use their customer data to reach out with important messages, tailored product and service offers or loyalty programs. As such communications are really targeted and in line with what the customer specifically consented to, this will reduce customer complaints or potential customer churn because of communication fatigue or privacy breach. A data privacy breach investigation can take a long time and tie up huge resources, thus it can be extremely costly, especially if large numbers of customers are involved. Therefore, using an appropriate consent management system will contribute to decreasing operational costs for the company, in general.

Customers, on the other hand, will be able to receive important messages, access relevant and valuable offers that bring tangible benefits for them, and that, on the longer term, builds trust, increases brand preference, loyalty and also results in higher customer lifetime value. Transparency and brand trust in this case means, that customers can rest assured, that the company will only use their data, and send messages or initiate contact, when it is really relevant for them. If customers know this, they will also be more willing to consent to a wider range of communication and interaction.

So, in order to protect and increase brand value and reputation, businesses need to go further than just compliance, and need to understand the role that privacy can play in helping to build brand equity and better customer relationships.

---

Etiya Consent Management and its architecture is completely designed with the needs of digital customers in mind. The unique architecture of the system allows safeguarding customers against all possible threats or unwanted contacts stemming from the enterprise’s different business units and touchpoints, including those from the solution partners as well. The business features are designed for all units and partners of an enterprise as a whole, with the aim to cover all flows from all touchpoints. As part of Etiya’s Customer Relationship Management, the Consent Management module makes sure, that all customer data and privacy settings are up-to-date, centrally stored, and that such data are used only in the context and for purposes specifically allowed by the customer, and processed, stored, and shared in a way, that ensures adequate protection and privacy.