Mature privacy programs experience higher ROI, Cisco reports

Mature privacy programs experience higher ROI, Cisco reports

Companies that invest in privacy receive up to $3.50 in return on investment. Building trust with customers is a key factor when formulating ROI estimates. Here are 3 great tips to build trust with privacy when your customers visit your website for the first time.


FROM PRIVACY TO PROFIT

Build loyalty and trust with your customers. It almost sounds as a cliché but nevertheless it’s the key factor for many companies when formulating ROI estimates.

Building that special relationship with your customers is vital for your online conversion rates. Vital for ensuring returning customers. Vital for building a strong brand.

It all begins with a good UX design and a solid approach to customer privacy. And those who invest in privacy also get a good return on their privacy investments a new report shows.

Your way to a mature privacy program

Roadmap to GDPR cookie compliance

One dollar spend on privacy gives you back $2.70

According to a Cisco analysis (2020), companies who have invested in privacy measures, experience positive returns on investments.

Based on responses from 2,500 professionals across 13 countries, companies on average received $2.70 for every $1 spend on their privacy program.

For every $1
an organization spend on privacy,
they receive a $2.70
return on investment

The investment saw financial benefits in six main categories:

Financial benefits in:

  • Reducing sales delays;
  • Mitigating losses from data breaches;
  • Enabling agility and innovation;
  • Making the company attractive to investors;
  • Building loyalty and trust with customers;
  • Achieving operational efficiency from data controls.

The analysis also show that more mature privacy programs see much better ROIs independent of company size. A hard investment in privacy could yield up to $3.50 return on investment.

Link: Cookies? Which rules apply? Three regulations you need to know about

Building trust with privacy a key factor

The category which was perceived as most important by the respondents was “building loyalty and trust with customers” (74% of respondents deemed this category as very significant when formulating their ROI estimates).

Privacy is here to stay, and the requirements are only getting tighter. Pioneering and investing in privacy not only builds trust with your customers, it also potentially increases your ROI up to a factor 3.5.

Therefore, it’s going to be valuable for companies to get started. Privacy will increasingly be seen as part of the brand, as part of the value your company provides.

Building trust with customers
most important parameter
valued by respondents

Are you securing your customers’ data online?

Where do your customers meet your company for the first time? Probably online on your website.

This is the first chance you get to demonstrate that you take their privacy seriously, that you care about their data.

It is also the first chance you get to demonstrate compliance, when your website uses cookies for marketing purposes.

But is your current cookie consent solution securing your visitors’ privacy?

Link: What is GDPR? And how does it affect your website cookies?

How can you boost your ROI with a privacy program? Three tips!

Be transparent and respect your users’ privacy.

Inform your visitors of cookies and data processing. Inform them what you use cookies for and who (third parties) receives the data.

Offer your users the possibility to opt-out of data processing, and respect that choice.

And if the user requests to change his or her consent, or even withdraw it, then offer that solution.

With these simple measures you show your customers that you take their privacy seriously. That you respect them as visitors on your website. And that will turn them in to re-visitors, to conversions and to re-conversions.

Try Cookie Information's Cookie Consent Solution (cookie pop-up) free for 30 days or booka an online meeting with us.

We assist big and small companies becoming GDPR compliant on their website and we handle more than +15 billion consents each year.

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Sources:

Study: Mature privacy programs experience higher ROI - IAPP

From Privacy to Profit: Achieving positive Returns on Investments - Cisco Data Privacy Benchmark Study 2020