E-Commerce Use, and the Protection of Consumer Privacy

Oct 21, 2024

Amidst the twenty-first century and the fourth industrial revolution, there have been extreme shifts into the digital sphere. Our news, interactions with friends and family, books, plane tickets, bank cards, and more, are all located, digitally, at our fingertips.

Through a few swipes and taps, we can access and utilise everything digitally, via our smartphones, and other smart devices such as tablets, laptops and watches. It makes for an extremely convenient and easy lifestyle, some may argue. However, not all that glitters is gold. Amidst change, there is always a group of people who resist it, and wish things would ‘go back to the way they were’.

Specific to this group of resistors is the narrative that the data and information we willingly give to service providers may actually be unsafe, and exploited to our detriment. These opinions have also started to infiltrate public discourse, making it an overarching discussion amidst our uses of technology for the everyday.

This article seeks to conceptualise e-commerce practices, and how its connection with consumer privacy and protection can be monopolised for the better of all parties involved. But first, let us consider what e-commerce actually means.

What is E-Commerce?

E-Commerce, also referred to as electronic commerce, is the use of internet and digital payment methods in exchange for goods and services. These can either be provided immediately, in real time, or can be physically delivered to your office or doorstep over a specified period of time.

In the simplest terms, e-commerce is ‘digital shopping’, the processes and exchanges that occur when you are reviewing items in your cart, and have proceeded to ‘checkout’. It is also applicable to the transactions that occur digitally, i.e. any time that cash may not be used.

In South Africa, specifically, many e-commerce integration options are utilised by businesses for seamless payments, easy and convenient interactions for customers, customer satisfaction, and competitive advantage. Some South African mediums and applications that may be used to facilitate optimal integration for the specific business type, and customer desires include, but are not limited to:

Payfast
Yoco
Zapper
SnapScan
Payflex
Peach Payments

Further insights on the above mediums, and the opportunities they offer to business owners are available here.

As our businesses are growing in a fast-paced and constantly evolving digital world, so too, do our options for payments and integration. With many businesses operating digitally, and no longer accepting cash, it becomes an overwhelming concern for consumers when their data is continuously being used, and risks being exploitated from both internal and external business operations.

Why is it Important for Us to Establish Consumer Trust?

By definition, consumer trust refers to the connections and relationships that we forge with our consumers. It is the extent to which we appeal to their emotions, and sustain their support through longevity, loyalty, and providing value in our business’s products and services.

By definition, consumer trust refers to, ‘the faith a consumer has in a company. It shows confidence in a company’s commitment to delivering on its promises and doing what’s right for the customer’. In order to gain consumer trust, we need to do right by them, and sustain this through ‘long-term’ investments and relationships.

Amidst the digital revolution and age we are living in, it can become difficult for businesses to forge consumer trust, mainly because we do not see them physically. They become virtual, mere statistics that increase our website metrics and conversion rates. Consumers also start to distance themselves with the businesses they support, mostly because there is no human connection forged with the person behind the till, or owner asking if you need help in the store.

Some ways for businesses to foster consumer trust digitally, include:

Forging personalised connections with clients: direct email marketing can be personalised according to your customer’s interests and activity, as indicated through your website metrics.
Solicit feedback regularly through surveys and questionnaires.
Show empathy and kindness when dealing with customer service queries and experiences.
Show appreciation and gratitude for the support garnered from customers who subscribe and make purchases.
Introduce loyalty programmes for long-term customers, with perks and benefits on offer for their commitment and support.

Customer trust and loyalty are therefore of tantamount importance to the business’s well-being and sustainability. However, through e-commerce payments and exchanges of personal information, customers can easily become vulnerable, and feel hesitant to disclose this information, and thereby support the business.

What is Consumer Privacy, and How can We Sustain This?

All human beings deserve the right to privacy, and to protecting their personal information. Consumer privacy refers to the handling and protection of the sensitive personal information provided by customers in the course of everyday transactions’. As such, it can become an issue for customers to disclose their personal information, such as their names, phone number, physical address and bank card details when deciding to support a business.

The growth of e-commerce and digital industries hence becomes threatened due to this limitation. There are many issues with consumer privacy that have in the past, been violated, and resultantly, there is this increasing reluctance. Examples include, ‘identity theft, financial fraud and other crimes’.

This can pose a risk to e-commerce integration, and so it is important we, as business owners, are able to manoeuvre and combat these obstacles. In order to do this, we need to provide signals to customers, that they are making the right purchasing decisions through the disclosure of personal information. This can be best achieved through testimonials and customer assurance. As it is a human right, there are laws binding us as business owners to follow through with this protection.

Adhering to Data Privacy Laws in South Africa

There are many consumer protection laws in South Africa, such as the Consumer Protection Act (2008), which protects customers from possible violations and breaching of privacy via telemarketing corporations. The Cybercrimes Act No. 19 of 2020 also protects consumers against harmful or hateful messages online, based on the sharing of personal information online. Active steps are furthermore taken to prevent fraud, forgery, extortion, and identity theft.

Most importantly, however, is the Protection of Personal Information Act (POPIA), 2013, which was enforced and effective from July 2021. This law is deemed almost revolutionary in the case that it prioritises and places heavy emphasis on data privacy, and consumer protection in any of their activity and endeavours in real-time, and online, in the digital sphere. Customers must actively consent when sharing their information on whether they would like to receive further marketing communications. In this way, companies and businesses are legally obliged to abide by it, or otherwise face prosecution.

The Cybercrimes Act and POPIA therefore serve as effective foundations upon which businesses can guarantee to potential customers that their information is safe, and that they can make the right decision in sharing personal information through the completion of purchases. Unfortunately, the legal frameworks presented are simply not enough, nor justifiable to some customers, and so, further efforts and endeavours need to be instilled by business owners to ensure consumers feel safe, and can easily put their faith and trust in your business.

How can Businesses instil Long-Term Trust?

There are many ways a business can garner this; the primary course is to prioritise the emotional well-being and security of the customer.

1. Respect Customer Boundaries

Some customers will not want to be contacted or disturbed, even though they are loyal to the business. Ensure that customers that are directly emailed, or receive promotional marketing messages have consented to receive them. If not, maintain the boundaries that specific customers have instilled.

This will not only make them feel respected, but also appreciate the space and privacy afforded to them.

2. Instil Two-Factor Authentication

Whether it is through an email or SMS, ensure that the customer is willing, and completely sure they want to go through with a specific purchase being made. Especially if it is a big purchase, they either need confirmation they are spending a specific amount of money, or they need to confirm that a transaction has been made.

The sending of a One Time Pin (OTP), is highly effective here. This is also a crucial tool banks use for card transactions, as a further step to protect credit or debit card use. Customers feel protected with their transactions made, and secure that these smaller steps are being followed through in order to facilitate a bigger outcome.

3. Provide Multiple Transaction Options

Some customers aren’t comfortable with using their bank card, whilst others are. Some might prefer to make an EFT, whilst others don’t want to share their bank details at all.

Based on this, it is valuable to account for all of these desires, and choose an integration method that works effectively for both your business, and the psychographic segmentation of your target market.

The more the customer feels their desires are being heard and recognised, the more likely they are to continue supporting your business.

4. Emphasise Testimonials

As unfortunate as it is, customers are less likely to place trust in a business blindly, based on your promise or guarantee that they will be ‘safe’ or ‘secure’. They are, however, more likely to believe the experiences of previous customers, and their unfiltered insights regarding their interactions with your business.

Ensure that you set up a Google Business account so that customers can rate your service, and leave reviews. Be sure to also enable comments on social media, website forums and blog pages. It is important that you demonstrate a willingness to improve based on negative reviews, and that testimonials, although true, are strategically placed on branded marketing material to increase and improve the value of the consumer’s trust.

Consumer trust and privacy has prevailed as an ongoing issue since the rise of the digital revolution. Due to increased cyber-crimes, hacking and identity theft, the concern has become valid, and something to be addressed. Since many businesses are now operating digitally, their livelihood depends on customers willingly disclosing their personal data. It is therefore imperative that we, as business owners, take those necessary steps to ensure our customers feel safe, protected and loyal through fostering long-term relationships and value in products or services offered.