Year over year, the number of consumers purchasing goods or services online has increased. And more and more businesses understand that even if they are not strictly online-based, having an online presence is necessary.
With an online presence, small businesses have new opportunities and face unique challenges. A well-designed and attractive website is important from a branding and marketing perspective.
Likewise, the website should be user-friendly. However, a key aspect of operating online (whether you have a full e-commerce shop or use your website to market your services) is the inclusion of well-written online policies on your website. Online policies protect the interests of the business owner, provide transparency, and foster a positive experience for customers.
Here are just a few ways your business will benefit from properly drafted online policies:
Building Trust and Credibility
Maybe it’s just me, but if the website looks like it hasn’t been updated since 2003, and if I have to hunt for the link to the terms of use, shipping policy, refund policy, etc., that makes me pause. Well-crafted online policies, such as privacy policies and terms of use and clearly-defined shipping, return, and refund policies, help small businesses project a professional image to their customers. Simply put, you look legitimate.
By clearly communicating your commitment to protecting customer data, respecting privacy, and adhering to industry standards, your business can build trust and credibility with your target audience.
Not only will you look professional and legitimate, but you also demonstrate transparency by outlining your policies regarding data collection, storage, and usage. You demonstrate transparency when you clearly define what counts as an acceptable return, outline the procedure to request a refund, and the care taken to ship products to you.
When customers understand how their information will be handled and how and when they can expect to receive what they’ve ordered, they feel more comfortable sharing their information and making the purchase. This results in increased trust and a stronger relationship with your business.
Protecting Customer Data and Privacy
Operating online expands your business beyond your physical location. But, with most business opportunities, you must assess and take steps to reduce potential risks.
Well-written online policies are essential for small businesses to comply with local and international regulations, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). (Read more about the GDPR here).
By clearly defining how customer data is collected, used, and protected, businesses can avoid potential legal issues and costly penalties.
Setting Clear Expectations and Terms of Use
In many ways, online policies are contracts between business owners and users. And just like a contract sets clear expectations between parties, the terms of use or terms of service provide clarity to all visitors to the website regarding their rights and responsibilities when accessing and using a small business's website or online services.
Setting those expectations helps prevent misuse, copyright infringement, or other unwanted activities that could harm your business. Your policies can also help you limit your liability by establishing guidelines for user behavior and disclaiming certain liabilities.
For example, if you provide financial tips, if you operate in the health and fitness space, or if your website includes advice, instructional videos, testimonials, or data, that demonstrates how other people who followed your advice achieve success. You want to make it clear that you are not guaranteeing results and that the business is not responsible for injuries resulting from taking the advice.
Resolving Disputes and Managing Online Interactions
As mentioned before, your online policies are like a contract between you and your customer or you and visitors to your website. Any good contract will include a dispute resolution clause.
In the same way, your online policies should outline procedures for resolving disputes, whether it's through mediation, arbitration, or other alternative dispute resolution methods. You want to manage potential conflicts with customers or users in a fair and efficient manner and avoid costly litigation.
Additionally, it’s imperative that you manage user-generated content, such as reviews or comments on your website or social media pages. By setting clear guidelines for acceptable behavior, businesses can maintain a positive online environment and promptly address any inappropriate or harmful content.
As an intentional and determined business owner, you cannot afford to ignore those links typically found in the footer of most websites. These online policies not only protect customer data and privacy but also enhance trust, credibility, and transparency.
By setting clear expectations, mitigating legal risks, and effectively managing online interactions, you can create a secure and reliable online environment. Investing time and effort into developing comprehensive and user-friendly online policies is a worthwhile endeavor that can contribute to the long-term success of your small business in this digital landscape.
If you know you have ignored this long enough, or you’re just not confident in the online policies you currently have, reach out to us for a consultation, and gain a peace of mind knowing your online business is secure.