January 7, 2021

5 things you need to know about CX and data privacy

Without a doubt, 2020 will be remembered as the year of digital transformation. And playing the biggest roles? The boom in online transactions, an increase in cloud services, and technology at the center of the new normal.

Every time a transaction is made, customers trust brands with something more valuable than money: their data. 

But how do data security and privacy influence customer experience? Learn the 5 essentials for improving the experience and instilling the trust that users are looking for.

1. Be transparent with customers

At a time when data use and management is scrutinized, having clear security principles and sharing them with your customers is the best starting point for instilling trust.  

Users today know more about their rights and have more autonomy when it comes to knowing exactly what data is compiled and how companies use that information. From email marketing subscriptions to editing, restricting, or deleting data in cookie policies, people can take practical steps. 

So companies take on the role of personal data keepers while customers agree to share their behavior and preferences with the organizations they trust. In fact, according to a Salesforce study, 84% of customers are more loyal to companies with strong security measures.

2. More user-centered processes

The best way to understand how your customers feel about their experience with data privacy and security is to appeal to empathy. That is, put yourself in their shoes and understand what they need, what their main concerns about data management are, and if your company’s strategy revolves around that. 

How a company discloses their security measures (especially in the financial sector) is key to significantly improving the experience and building trust among users. 

In fact, according to a Gartner study, risk management and privacy concerns within digital transformation initiatives will drive additional security service spending for more than 40% of organizations in 2020. 

3. LGPD and GDPR: Better data quality

With the new General Data Protection Law (LGPD, effective in Brazil since August 2020), companies are required to keep user data clear and optional. The regulation is based on the European GDPR (General Data Protection Regulation), in which the main goal is to give residents and citizens control over their personal data and simplify the regulating environment of international businesses, unifying regulation within the EU.

The main fundamentals of the LGPD are: the protection of privacy, freedom of expression, and security of privacy, honor, and image. With this in mind, the law protects each and every piece of data that identifies or could identify a: specific (physical) person, individual taxpayer registration (CPF), identity card (RG), IP address, blood type, race, religion, philosophy, politics, and sexual orientation, for example.  

This way, it clarifies users’ rights about their data, knowing the purpose for collecting and handling it, how it's kept and for how long, who is responsible (Data Privacy Officer), and how to contact them.

Companies have to state the purpose for collecting data, and the data they gather will depend on customers’ clear and objective express authorization.

This could mean a decrease in the amount of information, but an increase in quality thanks to the level of detail. 

With better data quality there's a higher level of personalization that can be applied to each user’s content and experience.

4. Participation across all teams

Data security and privacy isn't just for IT or legal departments. Directly impacting the customer experience also involves marketing and CX strategy. According to Cisco data, 42% of companies indicated that their privacy investments led to agility and innovation at their companies. That means teams coming together can improve internal processes and communication on security and CX matters.

5. More personalized interactions

As we already mentioned, the quality and detail of user behavior leads to personalization. According to an Emarketer survey, 80% of people would feel comfortable sharing personal information directly with a brand for the purpose of personalizing marketing messages.

 Having increasingly more accurate data lets you create strategies that help customers achieve their goals efficiently, like helping a person on their preferred channel or starting a session quickly without compromising account security.

So are you implementing these at your company?

Learn more about Aivo’s security or contact us to start offering your customers incredible, secure and efficient experiences. 

Are you looking for new ways to improve your CX?

Our customer service solutions powered by conversational AI can help you deliver an efficient, 24/7 experience  to your customers. Get in touch with one of our specialists to further discuss how they can help your business.