How Can Your Company Benefit From Consent Management Software?

Consent Management Software

What is consent management, and how is it important?

When people use the internet, especially on their mobile devices, there is 100% assurance of an application accessing the user’s data. This personal data is used when someone purchases online, make banking transactions, signs up for a website, and many other instances. All applications that collect the data use it for specific purposes; this is where consent comes into the picture.

Earlier, people were unaware, for the most part, of their personal information being used by companies. There were no significant rules and regulations for companies to follow. Nowadays, people are mindful of how their data is used, and companies are obligated to inform and request customers each time they utilize their data.

Consent management is a system where users can give or withdraw consent for the personal data they share with a company. Consent management keeps the person in the loop about the various entities accessing their data and gives them the power to control their data. In addition, the system ensures that the companies comply with rules when collecting data and honor a user’s preferences.

What challenges do companies face in consent management?

Collecting and storing data can be both advantageous and cumbersome for companies. The added pressure from users and the new regulations that come into the picture make it more difficult for companies to store and utilize data systematically. In the landscape of data privacy, companies that adhere to legal and ethical commitments and practice the best actions for their business and customers will be successful.

There are several reasons why companies struggle with consent management and the other compliances associated with it. Some of those obstacles are:

1. Limited understanding of data privacy

To come up with the best methods to tackle severe issues like consent and data privacy, one must have a thorough knowledge of the problem. However, few people are experts in consent management and data privacy standards. These concepts are relatively new as people are becoming more aware. The solutions and the legal policies of the same are expected to change as the data privacy landscape changes.

2. Lack of technical expertise

In today’s day and age, it is a must for people to be tech savvy. Without the needed skills, one can find it challenging to identify and track the data that is stored and processed. A proper consent management system requires the needed skillset and adequate understanding of how technology helps. Furthermore, companies need to invest in the designing, building, testing, and technical aspects of a solution that adheres to legal requirements.

3. Accumulation of data silos

Consumers have preferences that they hope the company honors when it comes to marketing communications. However, with so many data silos at hand consisting of the same type of information, organizations can easily overlook consumer preferences in their totality. Therefore, consent management software is needed to integrate this data into the company’s database seamlessly.

What is consumer management software, and how does it work?

In this evolved world where data privacy is of supreme importance, it is equally important to have the needed infrastructure that supports the concept. Consent management software provides businesses a platform to gather, collect and store consumer consent. The software makes consent management a cakewalk for organizations.

Here is how the entire process of consent management takes place within the software:

  1. A cookies manager takes over consumer data management and gives you complete control over its many aspects.
  2. It then displays cookies banners to users and takes their consent before data collection and usage. The user can modify their preference over which data can be collected and which cannot.
  3. The consent management software waits for approval from the user before they start collecting data. Then, before the user agrees to share the data, the software stops all applications from collecting and storing sensitive information.
  4. Users also can let the consent management software scan website and block any third—party applications from accessing their data. These monthly checkups lessen the users’ worry about their data.
  5. If the user approves applications and lets them collect their information, the software will store proofs and other consent agreements on their online database.
  6. The user has complete authority over their data and can modify their preferences when they want to.

Five benefits consent management software provides for your company

Consent management can be challenging for almost all companies, but it can be tackled using the right technology and infrastructure. Here are some benefits that your company gets to enjoy upon leveraging consent management software:

1. Assured compliance with privacy

The primary reason for using consent management software, apart from making life easier, is that it ensures that the company meets the requirements of privacy compliance. This accelerates the company’s growth and reputation by avoiding fees for noncompliance and possible threats to the company’s image in the market.

2. Builds customer trust

There is nothing more critical for an organization than to have the trust of its customers. The reason to do so is that people prefer to be with those companies that are transparent and have fair policies around how they use personal data. Additionally, when a company asks for permission from their customers before collecting data, it makes them realize that the company genuinely cares for them.

3. Seamless user experience

Users expect the experience with a business to be personalized and as smooth as possible. Integrating the consent management software with the website will automatically collect necessary data without interrupting the user. Additional permissions and approvals are unnecessary and will increase conversion rates and customer satisfaction.

4. Improved market and user insights

Companies can use their customers’ preferences to understand and perform market and user research. The collected data can potentially improve the company’s revenue if used correctly. Customer behaviors and purchase patterns can be analyzed without the need to prod more into sensitive data. This will result in the company gaining an edge over its competitors.

5. Augmenting a team of experts

Any software you use to manage consent should be backed by a team of people who know the ins and outs of the software. Unfortunately, not many people are data privacy experts and savvy enough to keep up with the changing rules and regulations of data privacy. When you have professionals handling the software, you can be at peace knowing your company and your consumers are in safe hands.

Summing up consent management software

There couldn’t be a better time for people to get enlightened about their personal information. It is also understandable that people want to be actively involved in the decision—making process of what, how, and where companies use their data. However, the method of obtaining consent should be a child’s play, especially for those new to the concept of consent management, and there is where consent management software can help.

By B Naomi Grace