Data is the new currency in the age of digitization. The exchange of which creates a win-win situation for tech companies to provide personalized experiences for netizens.
After visiting an ecommerce website, you might have noticed platforms like Reddit, Facebook showing you the same products that you were eyeing.
Targeted ads provide a more customer-centric experience using third-party information and thus make more sales.
Some people do not like advertisements, but most people do not like irrelevant ads. Personalizing content for users makes them feel identified, caters to their specific interests and lays a mutualistic business approach.
Although critics today argue that the growing concerns about data privacy puts this symbiotic opportunity into jeopardy.
However, limiting the sharing of personal data can deter new business strategies and ultimately disrupt the end-user experience.
Balancing Personalization With Privacy
The breach of data privacy poses a real threat to maintaining individual reputation and social order. In 2015, around 10 million unique user data profiles were hacked from an adult-dating website, Ashley Madison. This included their infidelity history, credit card details and compromising pictures. It became one of the leading cases of cyber-extortion crimes and led to the introduction of new regulations by policymakers. The key is to tighten the cyber laws concerning data breaches and keep their use in context.
In the digital age, the difference between a profitable and non-profitable company is the way its data is used in enriching customer experience. More than 60% of companies today compete on the basis of customer experience alone, per Forbes. Major players in the start-up arena like Amazon focus their unique selling proposition on customer service and innovation.
Let's dive into some of the ways in which we can mitigate the risk of data breaches and scale our businesses to new heights.
Related Article: The Future of Personalization and 1st Party Data
Understand and Focus on Data Principles, Policies
Thorough understanding of data principles and policies is integral to protecting the privacy of customers. Quality data on customer behavior, preferences and intent must be focused on enhancing user experience by personalizing and customizing content. This in no way should risk data privacy to frustrate users but rather create a symbiotic relationship.
Data Analysis to Support Customer Intent
One of the ways to create a customer-centric business model is by analyzing the user data and democratizing the access to data analysis reports across departments that frame marketing strategies.
It is not always important to collect volumes of information but to use the data to optimize customer intent. The data analytics must be available with departments involved in focusing on customer behavior.
Balance and Educate, Lower Risk
Data privacy and personalization are two sides of the same coin. But rather than being conflicting, these must be vetted by legal advisors before their application into innovation and business processes. Company PRs can help in balancing the use of data thus lowering risk and enabling the creation of new products and services.
Rooting for Customer Trust
User data when used in context helps in maintaining the privacy that establishes trust between customers. Optimal customer experience can only be achieved by understanding the significance of privacy and personalization in creating innovation and business values. Ethical use of data can build long-term trust for your company among customers.
Data exchange is one way through which customer perception can be brought into reality. It benefits in understanding customer behavior and leads to research and new developments in the field. Continued research based on customer intent is essential for ongoing innovation. It helps business owners to visualize the larger picture by estimating demand in the field, increases transparency and reduces misinformation.
Some of the key benefits of sharing personal data are:
Allows Ongoing Research
Data sharing not only helps advance research but also points it in the right direction which is beneficial to both the manufacturer and consumer. Raw data may be confidential in some instances, but research analysis helps improve the end product.
Customer feedback and information is crucial in the process of developing the product to be best fit for the market. The end-user experience is ultimately improved by sharing data with the company.
Verification of Results
Feedback and analysis from customer data validate the purpose that the company tries to achieve. It allows verifying whether the product is market-fit or not. This is an important step for moving in the right direction for businesses that aim to impart value.
Long gone are the days when one brand would capture the market and customers would have no options for choice. Today, as the number of businesses has increased, the competition solely depends on providing value.
Related Article: Is It Possible to Have Both Privacy and Personalization?
Product Development and Improvements
Why do you think there are 13 versions of the iPhone? Data exchange is the key to continued growth in the process of creating revolutionary products. Quality feedback from the users will encourage more research.
This helps the companies in strengthening their positives and weakening the false positives of the products. The end customer gets a product which is more advanced and customized. Without the data exchange, there is no communication between the manufacturer and customer. Thus, the experience of the customer is not valued.
Promotes Connection and Collaboration
For the purpose of collecting data, companies are more inclined toward promoting collaboration with the users than ever. This creates a relationship between the buyer and the seller and consequently builds trust. Customer experience is enriched with personalized content that helps in decision-making.
Conclusion: Support Digital Transformation Through Data Sharing
It may come as no surprise that in the age of digital transformation, companies need to consider the security of the data they collect, store and share. Nevertheless, promoting data exchange can increase market transparency and continued growth.
Data privacy must be the foundation of any transformational digital project as without it you might not only be penalized but also lose customer loyalty and trust. Digital transformation through data sharing leverages innovation and the introduction of cutting-edge technology to accelerate business processes.