The effect of transparent data policies on customer loyalty in digital marketing: A study of a retail brand in Kano.
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Background of the study
Transparent data policies are pivotal for building long-term customer loyalty in digital marketing. A retail brand in Kano has implemented clear data policies to inform consumers about how their personal information is collected, used, and protected. By emphasizing transparency through detailed privacy notices, consent forms, and regular updates on data practices, the brand aims to foster a trustworthy relationship with its customers (Ibrahim, 2023; Adeyemi, 2024). These practices are integrated into the digital marketing strategy to ensure that customers feel secure while enjoying personalized services and offers. Transparent data policies are posited to reduce consumer apprehension regarding data misuse and encourage greater engagement and loyalty. This study examines how transparent data policies influence customer loyalty by analyzing customer feedback, engagement metrics, and repeat purchase behavior. It also evaluates potential trade-offs between data transparency and marketing personalization, providing a balanced view of how ethical data practices contribute to long-term brand success (Chinwe, 2025).
Statement of the problem
Despite the adoption of transparent data policies, the retail brand in Kano faces challenges in quantifying their effect on customer loyalty. Consumers may remain cautious about data usage, and insufficient communication regarding data policies can lead to mistrust. This uncertainty can result in lower engagement and reduced repeat purchases, undermining the effectiveness of digital marketing strategies. The brand struggles to balance the need for personalized marketing with the demand for transparency, resulting in potential gaps in customer loyalty. This study seeks to address these issues by investigating the impact of transparent data policies on customer loyalty and identifying strategies to enhance trust and engagement (Okafor, 2024).
Objectives of the study:
To assess the impact of transparent data policies on customer loyalty.
To evaluate consumer perceptions of the retail brand’s data practices.
To recommend strategies for optimizing data transparency to enhance loyalty.
Research questions::
How do transparent data policies affect customer loyalty?
What are consumers’ perceptions of the brand’s data practices?
Which strategies can enhance loyalty through improved transparency?
Significance of the study
This study is significant for retail brands seeking to improve customer loyalty through transparent data policies. It offers practical insights into how clear data practices can build trust and drive repeat business, ultimately enhancing digital marketing outcomes. The findings contribute to ethical marketing strategies and support sustained competitive advantage (Adeleke, 2024).
Scope and limitations of the study
The study is limited to a retail brand in Kano and focuses exclusively on the effect of transparent data policies on customer loyalty in digital marketing.
Definitions of terms
Transparent data policies: Clear communication regarding data collection and usage practices.
Customer loyalty: The likelihood of customers to continue engaging with and purchasing from a brand.
Retail brand: A company that markets and sells products directly to consumers.
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