Privacy Policy in Marketing: All you need to know

karlavisionfactory
Apr 10, 2023
3 min read

Updated: Aug 27

Author: Tereza Záborská

Date of Publication: 10/04/2023

A privacy policy is a statement that discloses the ways in which an organization manages the personal information of its customers. In fact, this type of marketing has become more revalent in recent years. This is because of the growing concerns about data privacy and security.

Key elements that a privacy policy in marketing

● Information collection: Clearly state what personal information you collect

from your customers or users, and how it is collected.

● Use of information: Explain how you plan to use the information you collect.

Also, be transparent about your intentions and give customers the option to

opt out of certain uses.

● Protection of information: Describe the measures you have in place to

protect the personal information you collect.

● Sharing of information: Disclose whether you share personal information

with third parties, and if so, what types of third parties they are. What’s more,

you should be clear about the purposes of any data sharing. In particular, it’s

better to obtain explicit consent from customers before doing so.

● Compliance with laws: Ensure that your privacy policy is in compliance with

all relevant privacy laws and regulations. This may include laws such as the

General Data Protection Regulation, known as GDPR in Europe. Specifically,

in the US this law is called the California Consumer Privacy Act (CCPA).

Which companies find privacy marketing most useful?

Privacy marketing can be particularly effective for companies that deal with sensitive

customer data. Companies dealing with this type of data are mostly healthcare

providers, financial institutions, or online retailers. Actually, these companies can

reassure customers that their personal information is safe by emphasizing their

commitment to protecting customer privacy. Also, they can encourage them to make purchases or engage with the company in other ways.

Companies that use privacy marketing typically highlight their privacy policies, data protection measures, and other related initiatives. For example, they may prominently display privacy badges or certifications on their website. Also, they can advertise that they do not sell customer data to third parties. Overall, a privacy policy is a critical component of any marketing strategy, as it helps build trust with customers. Also, it ensures that their personal information is being treated with care and respect.

The sectors that gain the most from "privacy marketing":

Privacy guarantees are crucial for healthcare organisations because they handle extremely sensitive patient records.
To reassure patients, telemedicine apps, for example, highlight HIPAA compliance in their messaging.
Strong trust is essential for financial institutions, including banks, insurers, and fintech businesses, to safeguard client financial information.
Businesses such as PayPal emphasise "data security" and "buyer protection" in their advertising.
Large volumes of consumer data are processed by e-commerce companies; strong privacy guarantees can boost conversion rates and reputation. For instance, Amazon provides customers with settings to control visibility while explaining how user reviews and purchase history are stored.

How to effectively use privacy marketing

Emphasise the privacy guarantees. Simple and comforting statements like "Privacy first" or "We never sell your data" can boost customer confidence right away.

For instance, DuckDuckGo's entire brand is based on the tagline "Privacy, simplified."

Showcase privacy certifications to demonstrate credibility and compliance, such as ISO 27001, TRUSTe, or other accepted standards. Furthermore, these certifications are frequently shown as trust badges on the websites of SaaS providers.

Steer clear of legalese and excessively promotional language in favour of plain, approachable language. Use clear, understandable explanations that are easy for customers to understand instead. For example, Shopify's privacy policy has plain-language summaries and frequently asked questions (FAQs) next to the legal text.

Conclusion

In addition to being required by law, a clear and well-written privacy policy is also a competitive marketing tool. Long-term trust and loyalty are more likely to be earned by businesses that prioritise transparency and honesty in their communications about how they handle personal data. However, ambiguous or unduly "salesy" privacy statements run the risk of harming a company's reputation and clientele.

In the digital age, brand value is equal to privacy. A company's relationship with its customers will be stronger the more open and proactive it is about protecting personal information. Increased trust, increased engagement, and enduring customer loyalty are all advantages for brands that incorporate privacy directly into their marketing narrative.