Some of the most common methods of enhancing user experience involve improving platform interfaces and increasing channels where customers can access your business. Data transparency is a method often reserved for company image and complying with regulations. However, it can also be a powerful tool that improves the user experience.
The Basics Behind Data Transparency
Data transparency helps customers understand two key factors — what information is collected about them and how it’s gathered. With that in mind, here are three main effects on user experience.
Build Trust With Users
Sharing information with your customers can foster trust between them and your business. About 81% of Americans are worried about how companies use the data collected about them. Many often feel like they have little control over how it’s even utilized in the first place.
Incorporating data transparency into your operations indirectly lets customers know what you monitor and how safe they are. Outline the privacy policies that help them feel secure and protected online.
Opens up Data Practices
Companies ensure their data practices meet the standards set by national and international regulations. However, customers are often left in the dark about how personal information and other details are collected.
Add information about the data practices your company uses. You can provide links to extra resources to legitimize your claims. Aside from improving complacency, it also makes your company seem thorough and capable.
Empowers Customer Decision-Making
Customers desire to have personal control over their information. Adding features where site visitors can consent to share their data creates a more honest user experience and promotes security when exploring the platform.
It can even draw people to learn more about your products and services. Publicize general information on your user base, like the demographics or number of visitors. Showcasing your reach and impact may convert them into paying clients.
Data Transparency Application
Data transparency can benefit a multitude of industries. These six key companies are leveraging information for people’s user experience.
Telehealth Destigmatizing Use
There are some negative patient perceptions around receiving virtual care, but backing up its impact on the general public can help destigmatize its use. For instance, Teladoc surpassed 50 million visits in 2022, showcasing how people have placed their trust in these services.
Teladoc has also used data transparency to spread awareness about mental health issues. It noted a jump in diagnoses for anxiety, depressive disorders and acute stress.
Sales Company Improve Pricing Presentation
Sales companies can utilize customer feedback forms and conversations to understand how to improve their performance. Liquid Web’s chief growth officer notes how the insight he looked for highlighted pain points to refine the business’s pitch.
One distinct example is pricing transparency. A client commented that they had almost decided against their company’s solution because of confusion over the value. Providing clarity over that information boosted the close rate effectively.
Drawing Attention to Digital Products
Game-making studios and similar companies with network-based products can leverage data transparency to seek feedback about the player base’s experience and build hype for new releases. For instance, Larian Studios publicized on X that more than 1.3 million players completed Baldur’s Gate 3 in 2023. It showcased how healthy the player base was and created more buzz around the game.
Similar strategies have lately been used as ways to build anticipation for new games while giving consumers an idea of what to expect. For instance, Elden Ring Nightreign recently ran a network test prior to its late May release, revealing that the network test’s boss was defeated 58,615 times. This creates both an understanding of the stability of the server and an enticing challenge for potential players.
Supply Chain Teams Reducing Fraud
The supply chain is vulnerable to tampering, impacting a company’s relationship with retailers and consumers. Cirrus Bridge implemented a transparent tracking system with blockchain that allows regulators and stakeholders to check records about a product in real time.
Data transparency has made a difference in operational efficiency internally and customer confidence externally. It also deters counterfeit incidents since the decentralized record detects all parties accessing the data.
Customer Service Showcasing Value
There have been discussions over whether it’s more beneficial for businesses to utilize AI for customer service rather than getting a representative. Last year, Gartner revealed that 60% of customers are concerned that it will become more difficult to reach people when they have a problem.
Worries about AI providing the wrong answers or a lack of data security since clients won’t be talking to actual people were also prominent. Those statistics influence a business’s decision-making and solidify the importance of its offerings.
Streaming Services Personalizing Recommendations
Streaming services have a lot of data to work with, from the content you have consumed to what titles are saved for future viewing or listening. Integrate it into the user experience through recommendations for customers.
You can also enhance the user experience through data storytelling. Initiatives like Spotify Wrapped are successful because they make information feel much more meaningful, reminding listeners of the songs they have listened to and the memories attached to them.
Prioritize Data Transparency
Many companies have taken advantage of providing their customers with an insider’s view of their data and collection methods and reaped the benefits of it. Share relevant information and help your client base feel at ease and valued.
Jack Shaw, editor of Modded and author of numerous articles on business success and self-improvement, seeks to inspire readers with his practical tips and strategies for growth. His writings can be found on Innovation News Network, EPS News and more.
Photo by Shubham Sharan on Unsplash
