New Rules for App Data Collection Transparency – A Relief to Users

Honesty is the best policy! Of course, one feature in mobile applications that all customers wait for is complete data transparency. Data transparency has rapidly become a crucial and critical ingredient in the customer experience recipe for all organizations running an online application. Based on the new rules generated for application “Data Collection” transparency, users have taken a big sigh of relief! Data is the life and blood of an economy. Companies like Facebook, YouTube, Instagram, and Google have built their business entirely based on data. However, after several threats, countless breaches, and increasing demand for security from the customers, there’s finally a little push back on what seemed like an unregulated feature of online businesses; data transparency.

Why Is Data Transparency Important to Customers?

Application data collection transparency holds a lot of importance in the current world. More than 75% of online customers mention that they expect data transparency to be maintained while using an application. Customer data has always been an incredibly powerful tool for businesses. Whether you are shopping online on Amazon or ordering food on Zomato, your homepage and notifications come custom-built based on the data collected from your entered location, previous orders, and search history. A lack of transparency in the data collection app of what is collected and how it’s used has eroded trust between customers. The style of data transparency and security services has become the hallmark for a good customer experience. Today, fewer and fewer customers want businesses to access their data to ensure their details, contact information, and conversational data are secure. Data transparency in data collection is necessary as it builds trust that further multiplies into loyalty. Therefore, becoming a winning strategy creates long-lasting, supportive relationships between business and customers.

How can Businesses Build Trust by Promoting Transparency?

Businesses can benefit tenfold by being transparent around the data they are collecting from their customers and how they are using it. According to customers, businesses should understand that the mantra lies in finding what’s good for customers is good for business. According to a study conducted on business operational online, it was noticed that double returns were created for every dollar spent on privacy along with several benefits. 76% of businesses saw a significant boost in customer trust More than 73% of businesses mentioned that maintaining data transparency made them more attractive to investors 73% of businesses also mentioned that data transparency enabled innovation The secret, therefore, lies in the customer experience. If businesses can help customers by using clear language around the data collection app policies and how the collected data can benefit customers, it can help them increase customer trust, future support, and better product recommendations.

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