In an increasingly digital world, where account breaches and data leaks are common, protecting customer data has become a top priority for businesses looking to build trust and loyalty.
According to PwC’s ‘Voice of the Consumer Survey 2024’, a staggering 83% of consumers say they value and trust companies that prioritize their personal data. In addition, 80% of consumers want assurances that their data won’t be shared or sold.
Data protection = trust
The survey was conducted with 20,662 consumers across 31 countries and their responses highlighted a gap in consumer trust. Business leaders who pay attention can close this gap and get ahead of their competitors.
The issue weighing heavy on consumers’ minds? Only around half of those surveyed feel confident in their understanding of how their data is stored and shared. In addition, 71% say they have concerns about the security of their personal data on social media.
The time is ripe: Competition for customer data is intensifying, and new regulations are being drawn up in the EU and several Asia-Pacific countries. Now is the time for companies to implement robust data protection measures.
Balancing personalization and privacy
This can be tricky since research also shows that consumers value personalization and targeted marketing. In Australia, consumers are willing to pay more for a “personalized experience”, despite the rising living costs.
Mailchimp’s Malinda Sandman says personalization “is at the heart of being customer-obsessed. It allows you to show your customer how your business, your services, and your goods can satisfy the customer’s needs.”
But the quest to offer personalization should never infringe on customer’s privacy and data protection. To navigate this delicate balance, businesses must develop a social contract in which consumers willingly share their personal information in exchange for valuable perks.
The PwC report shows how this exchange of data and incentives creates a “virtuous circle” of trust and revenue.
How to secure customer data
Companies need to reassure customers that their personal data is safe and secure. This can be done by implementing strong data protection policies. Ensure data collection is transparent by giving customers the choice of how to manage their data.
Don’t neglect the technical aspect of data protection. Use encryption methods to protect data while it is being transmitted and stored. This could range from using safe storage techniques to preventing unauthorized access to client data.
Businesses that prioritize data protection will thrive in the digital age. By safeguarding data while still providing personalized experiences, companies can build lasting relationships with their customers.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
