On January 1, the California Consumer Privacy Act (CCPA) will go into effect. The new law is already being touted as a potential model for other laws at the state and federal level. It has sparked a renewed debate around privacy regulation and what brands need to do to comply with these laws. At the same time, brands recognize that identifying and engaging with customers is crucial to an ongoing relationship and increasing customer lifetime value (LTV).

The CCPA aside, privacy legislation is not going away; in fact, it’s likely to expand in the U.S. While compliance with consumer privacy regulation is necessary, it doesn’t have to be a source of friction between brands and their customers. It can actually be a positive as it offers a number of opportunities for brands to hone how they onboard new customers and engage with existing ones.

Seeing the Sun Through The Clouds

Can there be a silver lining to CCPA, GDPR and other privacy legislation? Absolutely.

Consumers want to interact with the brands they buy – our recent research demonstrates this clearly in regard to product brands in particular. Today’s buyers prefer personalized and relevant interactions – they expect something of value in return for providing their personal information. On the other hand, they don’t want their identity to be compromised or their data to be shared without permission, and they don’t want to be spammed with irrelevant communications.

There's also a potential impact to the availability of third-party data sources which brands may rely on today. Under CCPA, selling encompasses the exchange of personal information "for monetary or other valuable consideration." The phrase "other valuable consideration" leaves room for interpretation and, therefore, third party data will likely become less attractive for brands, making collecting first party data even more crucial to enable personalized customer communication.

Behold the onboarding experience, a value-added and compliant method for brands to connect with their owners from the moment they open the box. When done well, consumers are inclined to voluntarily share personally identifiable information with brands, and those brands that provide value at this moment – prior to opt-in – see higher opt-in rates and set the stage for delivering a mutually beneficial, long-term ownership experience.

Making the Most of Owner Engagement

There are specific actions brands can take to demonstrate to new product owners that there is value in continuing the relationship. Here are a few action items that our SVP, Matt Parsons, and I shared during our recent Owner Insights webinar:

• Connect with as many of your owners as possible. Said differently, rethink product registration to become a meaningful event, an onboarding experience, that is frictionless and engaging. Make the call-to-action visible on the product or packaging and offer an incentive to connect. For example, “to receive special offers, text for more information” or “learn which product is best for you” or “receive a special welcome gift when you register your product.” The key is to provide clear value and make it easy for them to connect using their mobile device.

• Deliver new owners a “perfect first use” when they raise their hand to connect, from the very start of the relationship. During the onboarding experience, think about what they need (user guides, support info) and what they may want (special offers, complimentary products) and provide those resources during the onboarding experience. You’ll likely see higher opt-in rates as a result.

• Gather consumer insights to inform future interactions. Ask a few questions while they are engaged in the onboarding moment to generate new consumers insights – with great response rates. For example, ask people why they purchased your product, what is most valuable to them and what they would like to receive from your brand.  You can include survey questions like these quickly and in a personalized manner ahead of opt-in.

• Ensure that your owner data is as accurate as possible by verifying key data like email and address during onboarding. This ensures you will actually be able to communicate with them after onboarding for those who do opt-in.

• Revisit your opt-in language. Is it compelling and does it reflect the value you will offer throughout the duration of your relationship with the product owner?

The Opportunity to Make a Positive Impression is Now

The conversation around CCPA is an opportunity to reach out to your product owners now and turn the interaction into a positive ownership experience. For existing customers in your database, a concise reminder of why it’s beneficial for them to continue their relationship with your brand can do the trick. We recommend pointing them to resources such as service support, product updates or personalized offers.