Research reveals 67% of internet users in the U.S. are more concerned about their privacy now than ever. Also, with the rise of data breaches and fraud, many businesses are embracing an effective consent management process to protect consumer privacy and maintain compliance.
The consent management market is projected to reach $2,271.1 million by 2030. If you are an e-commerce business owner looking to improve your consent management procedures, this article will help. It provides practical tips on how to master consent management as an e-commerce business.
Let’s get started.
- What Is Consent Management?
- Why Is Excellent Consent Management Critical For E-Commerce Business?
- Practical Tips To Master Consent Management
- When Is Consent Management Not Necessary?
- Consent Management And Compliance
- Understanding The Cookie Law
Consent management lets users decide what personal information they want to share with their business. It allows companies to maintain compliance by informing them about data collection and usage practices.
An excellent consent management system logs and monitors consent collection. This way, you won’t have to worry about compliance with consumer privacy policies such as the General Data Privacy Regulation (GDPR) and California Consumer Privacy Act (CCPA). Osano.com offers some helpful information on managing consent, visit their website to learn more.
Consumers can’t avoid cookies regardless of what they do online—whether they are shopping or simply browsing through your website. An effective consent management system allows you to gather consumer information following the proper procedures. You can also present authorization signs to users and document browser permission for proof of adherence with an excellent consumer management system.
Let’s check out critical benefits of e-commerce business below:
It builds trust
Consumers cherish their privacy and prefer to do business with brands that protect it. So, by setting up a consent management system, you project yourself as a brand that respects and cherishes your customers’ privacy. Also, since you are transparent with your data privacy procedures, they can trust you with their confidential information.
Excellent consent management policy changes users’ collective perception about your brand. Hence, rather than withhold their sensitive data, they provide all the details required for marketing purposes, consumer experiences, etc.
Also, an excellent consent management platform puts consumers in charge of how their information is used, building brand credibility. Customers know they can opt-in, reject, and opt-out their consent when they want to, which further establishes trust.
Consent management helps you to gather more valuable data
An effective consent management process educates users about who will process their data and what they will use it for. Suppose they understand you will use their information for specific purposes, such as personalization, user experience, etc. In that case, they will be willing to supply the necessary data to facilitate the process. So, rather than providing inaccurate or insufficient information, they will offer valuable data to help you achieve your marketing goals.
Avoid regulatory fines
An excellent consent management system lets you comply with data privacy regulations to prevent sanctions and fines. Therefore, by setting up an effective consent management procedure, you’ll save money by avoiding penalties, preventing financial challenges and bankruptcy.
It facilitates growth
It’s easier to scale your business when consumers trust you with data that enable you to drive significant business decisions. You can get valuable user data with accurate, meaningful customer details, including their experiences, challenges, demographics, psychographics, etc. This allows you to make necessary changes to improve their purchase experiences, increasing your customer retention rate and paving room for growth.
Establishing an excellent consent management process requires adopting specific tips. Let’s examine the most critical factors every e-commerce business owner must consider for a successful consent management system.
Simplify the data collection process
The data collection procedure should be straightforward for consumers. Otherwise, they won’t be motivated to supply the required details. Therefore, create a seamless experience through an intuitive, easy-to-use interface. Eliminate unnecessary processes and focus on the most critical information.
This makes the process quick and easy for consumers in a hurry to input their details and continue with their purchases. As a result, you’ll get many consumers to supply their information, facilitating the data collection.
Customize consent windows
Your consumers are spread worldwide, each location possessing distinct privacy regulations. So, it’s essential to personalize the consent management process to suit their location privacy preferences. Customizing the procedure allows you to tailor the experience to meet every customer’s specific requirements. Consequently, you can collect every user’s information regardless of location or privacy regulations.
Allow customers to permit consent
It’s essential to give consumers control over how and when they give their consent. The consent management process must allow them to opt in and out anytime. Apart from maintaining compliance, this factor builds trust and encourages consumers to authorize the use of their personal information. Since customers have the right to accept, revoke, reject and edit their permissions, they will supply the details necessary for your business’s purposes.
Keep a record of your collected data
It’s crucial to store a record of customers’ sensitive information. This means documenting the data you collect and what you do with it. This way, you can show consumers and privacy regulatory bodies when they demand consumers’ data records.
The information may range from users’ names, addresses, dates and periods they give, reject or revoke their consents, what they consented to, etc. A record is evidence of whether a customer agreed to what you do with their information, saving the business from penalties and fines for non-compliance.
Tailor consent to the UX of consumers’ devices
Your consent management system should work efficiently on all users’ devices. They must be able to view consent information from their desktop, phones, etc. It involves improving its User Experience (UX) and customizing it across all systems.
This ensures customers don’t experience bugs when enabling consent or supplying their information on your website. So, customize approval and privacy actions to suit every consumer device for a seamless experience.
The GDPR states that consent management is one of six ways to collect customers’ data. Therefore, although the best way to obtain users’ information is to seek their consent, consent management may not be necessary for the following scenarios.
- Performance of a contract: If you are supplying a customer with a good or service, the contract is the legal basis you rely on rather than the consent to process a consumer’s data to perform the contract. For example, if a buyer orders a shoe from your store, you will need the customer’s address to ship the shoe to where they are. In that case, the consumer does not have to consent expressly as the contract covers it.
- Legitimate interest: Your business may not need to request consumers’ consent explicitly if there’s a “genuine reason” to do so. However, such reasons are up for legal interpretation.
- Performance of public tasks: An authority may not need to seek consumers’ consent if they need their information to execute specific tasks based on public interest. However, this only applies to those who work for the government, hospitals, schools, etc.
- Vital interest: If processing consumers’ data is necessary to save a person’s life, they may not need to seek the users’ consent. However, this seldom applies to e-commerce businesses.
- Legal obligation: Consent management may not be required if the processing of a particular type of data is legally required.
How can e-commerce businesses comply with privacy regulations with consent management? Article seven of GDPR highlights how companies are expected to maintain compliance. Here’s a summary of what it entails:
- A company must ensure consumers have given their consent before collecting or processing their data.
- If consumers consent in a documented declaration relating to other issues, businesses must request permission in a way that distinguishes it from other matters.
- Consumers can withdraw their consent at any period. The withdrawal process must be straightforward for consumers, just like the collection procedure.
- A proper evaluation must ensure consumers give their consent freely. The data provided should also be necessary for the performance of a contract.
As a privacy legislation, companies with websites must seek consent from consumers to store or retrieve any data on their devices. The Cookie Law expects businesses to inform customers about cookie use and allow them to reject the files if they want to.
Consent management is necessary to maintain compliance and trust as an online business. Adopt the five practical tips discussed in this article for an excellent consent management process for your online business.
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