Data privacy and security vs personalisation

A global study has indicated that nearly 9 out of 10 consumers are concerned about data security and privacy, but 80% demand a personalised service

Data security personalisation

'Companies have a difficult balancing act to negotiate between security, transparency and a personalised experience. It’s something that organisations across all sectors have to get right or risk losing valuable customers'

A Verint international study of more than 24,000 consumers across 12 countries indicates the need for organisations to strike the right balance between personalised service, data privacy and transparency

According to the survey, nearly 9 out of 10 (89%) consumers surveyed say it’s vital they know how secure their personal information is, while 86% want to know if their data will be passed on to third parties for marketing purposes.

Personalised service continues to be important, with 80% of consumers saying they like it when service is tailored to them and their interests.

Verint business survey finds that these concerns are aligned, with businesses placing emphasis on the importance of data privacy (94%), personalisation (95%) and resolving queries quickly (92%).

>See also: Let’s make it personal: the UK retail digital revolution

This introduces a challenge for many organisations because, to provide highly personalised offering, they must have a greater understanding of their customers’ needs, purchasing histories and preferences – data.

That translates into collecting, analysing and holding customer data related to these preferences and behaviours. Together, this creates a dichotomy, as it’s very clear from the research that consumers have growing concern over their privacy and the use of the data.

Businesses seem to be on the same page as their customers, understanding the role that trust and transparency plays in building positive relationships with their base.

A Verint business survey across 1,019 organisations in 12 countries found 94% agree that it is important to inform customers that their data is secure, and 96% understand the need to tell customers if their data will be passed on to third parties.

As a result, they will have to ensure these high standards are maintained, as one misstep with a customer’s data can have disastrous effects.

>See also: 3 ways the hospitality industry can personalise the customer experience

Notes Ryan Hollenbeck, Verint ‘s SVP global marketing and customer experience program executive sponsor said in response to the results that “companies have a difficult balancing act to negotiate between security, transparency and a personalised experience. It’s something that organisations across all sectors have to get right or risk losing valuable customers.”

“Today’s brands must work to ensure greater transparency over the use of customer data and build trust and confidence in this increasingly challenging environment.”

Marije Gould, Verint VP, EMEA marketing adds that when “it comes down to getting the basics right, using technology and analytics to better understand what’s really on the minds of customers, and then working to help ensure the right resources are in place to address evolving needs and requirements.”

 

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