Feature
The Gist
- Transparency matters. Clear communication on customer data security builds trust.
- Engaging education. Make cybersecurity knowledge engaging for customers.
- Deliver promise. Provide value and strong IT security to maintain trust.
Consumers are becoming more aware and concerned about the collection, storage and use of their personal data online. As such, they tend to prefer businesses that consistently demonstrate transparency, trustworthiness and robust security in their data handling practices. To meet these evolving expectations, organizations must place a high priority on improving their cybersecurity customer experience. This can be achieved by clearly communicating their data policies, offering customers choice and control over data usage and ensuring data security and privacy. Consequently, prioritizing customer data security is no longer an option but an essential strategy for companies.
Here are six expert recommendations for balancing customer data security for an optimal customer experience (CX):
1. Be Fully Transparent With Customer Data Security
In order to trust a company regarding customer data security, customers must fully grasp what happens to their data, said Sameer Ansari, Protiviti managing director and data privacy practice lead. “Understanding how the company uses, protects and values customers’ data might make customers more inclined to share their information. As companies advance the transparency and trustworthiness agenda, they disclose their practices, extend greater control over data to customers, and safeguard this information following industry standards.”
It’s essential that customers be able to opt in or opt out of data collection schemes, with options to view, modify and delete their personal data, Ansari added. “This synergy between security, privacy and customer experience is becoming more apparent. Companies can engender trust through clear communication of data use, granting users control over their data, and adhering to industry standard data protection measures.”
2. Promote Privacy Credentials for Better Customer Data Security
Achieving and/or maintaining industry certifications such as SOC 2 (American Insitute of Certified Public Accountants System and Organization Controls 2 compliance), at a minimum, as well as PCI (the Payment Card Industry Data Security Standard), and the ISO 27001 (the International Organization for Standardization 27001) will help build a trustworthy image internationally, according to Joey Stanford, Platform.sh vice president of privacy and security.
“Companies can communicate their commitment to trust, security and data privacy via their website, clearly outlining the actions they’re taking to secure their customers’ data,” Stanford said. “We decided the best way to communicate our security and data privacy is through a Trust Center. A Trust Center should include the following components:
- Your privacy policy and the laws you follow (such as GDPR, the CPRA, etc.)
- Your terms of service
- Your external audit information
- Your data retention details
- Your data selling policy and opt-out option (if applicable)”
If you sell customer data, you should explain why and how customers can opt out, Stanford added. “However, it is better to stop selling data and advertise that you respect your customers’ privacy. You should also provide contact information for customers who have more questions or concerns."
Related Article: 10 Potential Data Privacy Pitfalls for Marketers
3. Make Customer Data Security Engaging
Twitter updated its consent and privacy policy in 2022 to include an arcade game that explained the entire policy in a step-by-step fashion; other organizations can also adopt this mindset, said Arun Kumar, Hero Digital executive vice president, data and insights global practice leader.
“You don’t have to go so far as to design a game but moving data consent to being an engaging experience opens up another channel for communication with your customers,” Kumar explained. “It becomes another avenue for engagement and can help build trust, as people are likely to be more trusting of companies that make an effort to share privacy rules and garner informed consent. And there can be ways to design the data consent experience by making the forms interesting and interactive, while staying within legal parameters.”
Adopting innovative and engaging ways to communicate data consent policies can serve as a significant step toward enhancing transparency, increasing customer engagement and fostering trust
Related Article: The State of Consumer Data Privacy Legislation in 2023
4. Provide Customer Data Security by Default
To balance security and customer experience, it's important to have secure by default features that enable your customers to leverage the product as they would without experiencing any depreciation in features or functionality, said Tyler Young, BigID chief information security officer.
This shouldn't be an either/or but should be security features, like audit logs, role-based access control (RBAC), encryption, etc., Young explained. “Come out of the box and enable trust in your customers to leverage your products securely. When it comes to customer data, they should have the control of what is sent to your product, if at all. If customer data is sent to your product it should be encrypted and should be locked down so no employee at the product company can access it. It all comes back to building trust through default security features.”
Integrating default security measures and empowering customer control over their data are fundamental strategies for building trust and optimizing user experience in the product ecosystem.
5. Educate on Customer Data Security
A customer who knows about cybersecurity is more likely to be more trusting, according to Zack Wenthe, Treasure Data CDP evangelist and senior technical product marketing manager.
To educate the customer, Wenthe recommended:
- Desmystifying data policies: Instead of just sharing legalistic privacy policies because they are required, take time to clarify them in layman’s terms. Make it a two-way conversation rather than a one-way broadcast.
- Promoting cybersecurity knowledge: Stand out in the complexity of the privacy landscape by becoming a cybersecurity educator for your customers in simple terms. This proactive approach can build trust and loyalty.
Wenthe emphasizes that by simplifying data policies and proactively educating customers about cybersecurity, businesses can foster deeper trust, enhancing their customer relationships and ultimately distinguishing themselves in a complex privacy landscape.
6. Deliver on Your Data Security Promise
You must deliver the value you promised and your IT security must be up to par, Kumar said. “If you’re asking people for their data, they expect you to store it in the most secure way possible. They expect their data to be unhackable. They don’t want to be plastered all over the web. That is the bare minimum expectation.”
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You must also deliver on the promise you made while gathering consent, Kumar added. “Use the data exactly as you stated. Respect the consumers’ preferences. And mine that data smartly to deliver a top-notch engaging marketing experience — instead of a remarketing email selling them something they already purchased), then customers will gladly hand you their data on a platter.”
Final Thoughts on Customer Data Security and CX
It's evident that fostering customer trust is not a one-off endeavor but an ongoing commitment that encompasses complete transparency, unwavering security measures, creative engagement, user education and delivering on promises. Respecting and prioritizing customers' data privacy isn't simply a legislative requirement or a modern trend. It's a business imperative and ethical responsibility that, when done right, can yield immense benefits, including enhanced customer loyalty, trust and, ultimately, a competitive advantage.
