Collecting compliant customer data on Shopify

How your store grows online is changing fast. 

More complex privacy regulations are being enacted around the globe, raising consumer awareness about how their data is collected and used. 

The impact of these changes are being keenly felt across the e-commerce industry as online brands struggle to effectively target customers and track results while keeping ad spending from skyrocketing.

In the new privacy first world, the key to future-proofing your business is to focus on nurturing your customer relationships.

To achieve this, you need to prioritize collecting owned customer data. And ensure you do so compliantly.

Gathering compliant customer data on Shopify

How you collect your owned customer data is critical. 

If you don’t do so compliantly, you risk this data becoming unusable and practically useless. And if you decide to use this non-compliant data in your marketing campaigns, you could be putting your business at risk of fines or worse. 

The right technology will help you focus on building your personalization strategy without worrying about data privacy regulations. 

When paired with a tool like Klaviyo, the Shopify ecosystem is particularly suited to creating customer retention strategies.  

You can launch personalized customer campaigns by collecting your first-party data on your Shopify store and passing it to Klaviyo. This process will help you get the most out of every user interaction.

Shopify has helped to revolutionize the online retail business by making it easy for new entrepreneurs to get up and running fast. However, when it comes to data privacy, things never stay the same for long. 

Unless your business model is focused on creating data privacy solutions, it is easy to fall behind.

Shopify’s built-in consent collection feature can hold you back as you use a one size fits all approach to data privacy no matter where your customers are based.

Consent collection on Shopify

You must collect consent from your customers to store and use their personal information in your marketing campaigns. 

Most importantly, you must inform your customer about what information is being collected and how you plan to use it before asking for their consent. 

The problem for merchants is that Shopify uses a one size fits all approach to consent collection. Their default checkout only allows you to set the consent as opt-in or opt-out regardless of where your customers are. 

Again this is more than understandable. They are an e-commerce platform, not a dedicated consent collection platform.

However, here’s where the main problem arises. How you are legally obliged to obtain consent depends on where your customers come from.

So whether you’re asking your users to opt-in or opt-out is a very different proposition. 

In general, the regulators in EU countries strongly advocate for an opt-in policy when obtaining consumer consent.

However, in the USA, you do not need a consent box in most cases. Using the one size fits all Shopify checkout can add friction here, as you allow your customers to opt out when no consent box is required.

So if you have customers within the USA and EU, there is no way for you to optimize your consent collection across both regions using Shopify’s default features. 

How can Dataships help?

By engaging with a tool like Dataships, you can optimize your consent collection to grow your marketable audiences and comply with data privacy legislations. 

So, what are you waiting for, why not book a call today with one of our experts and see how we can help optimize your consent collection and grow your marketable audiences.

Your first-party data strategy for Shopify

Over the last 5 years, customer acquisition costs have grown by over 60%, and this trend is only set to continue. See how your Shopify business can spend less and sell more with a first-party data strategy.