How Organizations Must Redefine Privacy and Loyalty in the Evolving Digital Age?
- Posted on September 13, 2023 by Robert
- Reading time about 5 minutes
As technological advances, computational power, and societal expectations evolve, the way businesses collect and use data and personal information also changes. To deliver exceptional digital experiences for customer loyalty, businesses must focus on the vast reservoir of information that fuels our interconnected world with every click, transaction, and interaction.
With the evolution of AI models that aim to transform digital customer experiences, we have witnessed an exponential increase in data usage enabling businesses to deliver entirely new digital services exclusively meant to cater to specific customer needs. This transformation has brought serious concerns related to data privacy and its impact on customers’ trust and loyalty towards businesses.
Before getting expert help from a reliable Customer Loyalty Software Solution, it’s crucial to understand privacy and loyalty in today’s evolving digital era. Let’s find out what experts have to say about the strategies that businesses must adopt to thrive and win customer loyalty keeping the focus on maintaining data privacy.
Significance of Data Privacy & Its Impact on Customers ‘Trust and Loyalty
With businesses moving forward to keep pace with rapid technological advances, they must ensure that data is collected and utilized in such a way that it protects customers’ rights with smart strategies and operational frameworks to adhere to the evolving rules of this digital age.
To better understand privacy and its impact on customer loyalty, we have connected with the expert, Nigel Vaz, CEO of digital business transformation firm, Publicis Sapient. Nigel has 2 decades of experience in the company and has been a strategic advisor on complex transformation initiatives with clients across geographies and a wide range of industries.
In this section, we will discuss what Nigel has to say about the ever-changing data privacy landscape, data privacy’s impact on customer trust and loyalty, and why companies must adopt a new approach to help them thrive in an increasingly digital world.
– How to Ensure Privacy & Loyalty in the Digital World?
Privacy can be defined as the individual’s ability to understand and control the type of personal information being shared, with whom, and for what reasons. On the other hand, Loyalty is the tendency of an individual customer to repeat and return to a business to transact and interact over time.
Though implementing data protection laws is essential to win trust, organizations must state clearly that the customer has the right to cancel at any time by giving them contact permissions. This helps to ensure customers that they can change their minds both legally and with the good grace of organizations, thereby building a trusted gateway between privacy and loyalty.
How these data will be interpreted and applied by organizations will continue to evolve as technology advances, which means the dynamics of privacy and loyalty will be a huge concern as data usage and user engagement becomes increasingly complex.
– How to Earn Trust from Customers to Enable Zero-Party Consent?
While building the loyalty program for small businesses, they must ensure that they get their trust fundamentals right before considering the value exchange. For instance, the value your brand exchanges in the form of personalized experiences and relevant offers is the factor that determines contact consent.
Before putting a strict number on the required value exchange, you must know that it will vary depending on the use case and the customer segment. Recent research by Prosper Insights and Analytics survey states that half of the customers have taken steps to protect their digital privacy by denying permission to mobile apps that track them. This is important because it represents the base between those who believe in strictly protecting their data and a growing segment with fewer privacy concerns who are happy to share their data.
Let customers know what data is being collected and why they must share it. How it will deliver an enhanced personalized experience, seamless transactions, or customized offers in return for sharing personal data. These are the factors of value exchange that can help brands earn trust and loyalty from their customers.
– How Businesses Should Balance the Risk and Reward of Gaining Trust and Consent?
Large brands are more likely to be well-resourced and informed to reduce the risk associated with the international regulatory framework. Apart from the legal requirements of GDPR in Europe and the California Consumer Privacy Act in the US, the overlapping laws such as the proposed AI effect of the European Union have evolved over the years.
Taking about the big tech companies like Microsoft and Google, their AI chatbots have been impacted in Europe by concerns over privacy and the risk is only for companies without the same scale and revenue. However, brands must know that the financial penalties for breaching data protection laws can be a huge percentage of global company revenues.
Another thing is that all the data privacy laws offer a framework applicable both for organizations and individuals to understand the nature of data being exchanged and how data sharing and usage works, thereby creating a minimum level of trust on which loyalty can be built.
After going through the blog, you must be now aware of the insights on data privacy and loyalty shared by the experts and how businesses must act to thrive in today’s digital age. Keep yourself updated with the latest market trends and changes in data privacy policies to ensure that your business keeps pace with its evolution to meet ever-changing customer needs and win loyalty for a long time.
As a renowned Enterprise Loyalty Management Software, Novus has years of expertise in delivering dedicated loyalty solutions for businesses across multiple verticals that are focused on maintaining data privacy. If you are planning to adopt new privacy strategies with the right loyalty solution, connect with our experts today & win customers ‘hearts for an ever-lasting relationship!