“When it comes to earning and building trust, compliance is not enough. Transparency was the top priority for consumers (39 percent) to trust companies, whilst organizations surveyed felt compliance was the number one priority for building customer trust (30 percent)”, said Harvey Jang, Cisco Vice President, and Chief Privacy Officer.
According to Cisco’s 2023 Data Privacy Benchmark Study, 90 percent of organizations say that global providers can better protect their data than local providers.
When customers trust the company with their data, they are more likely to provide and use its products and services. This, in turn, allows the company to improve its products and services and create more customer value.
The survey reveals 94 percent of organizations say their customers won’t buy from them if data is not adequately protected.
When customers trust a company with their data, they will positively interact with and may use its products or services. They may be more willing to share data and feedback, which can help the company to improve its products and services with the help of AI. This can lead to more personalized and accurate recommendations, improved search results, and more efficient customer service.
Cisco survey further says 95 percent of organizations think that employees need to know how to protect data privacy.
Data privacy is essential for companies, whether it is data security, legal obedience, trust, or reputation, to maintain and retain customer trust in the long run. Data privacy and transparency give customers control over their data and how it’s used. This lets customers decide what data to share and how it’s used.
Build customer trust in their data use with AI
Companies should build trust with customers when it comes to using customer data with AI. For example, companies should be transparent about their data collection and usage practices and provide customers with clear explanations of their privacy policies. In addition, customers should be informed about what data is being collected and how it will be used.
Companies should obtain customer clear consent when collecting and using their data. This can be done through opt-in or opt-out mechanisms, and customers should be able to understand and control their data preferences easily.
Protecting data is very important, companies should invest in robust cyber security measures to protect customer data from breaches or unauthorized access. This includes encryption, firewalls, and regular security updates.
Companies should be aware of the regulations and laws related to data privacy and protection and ensure that their use of AI complies with them.
Companies should use customer data to improve their products and services and to provide value to their customers. For example, they could use customer data to improve product recommendations or personalize their services.
Organizations should do more to build customer’s trust and protect data
To maintain customer trust and protect customer data, companies should implement strong security measures such as encryption, secure servers, and regular software updates. They should also have clear and transparent privacy policies in place and obtain explicit consent before collecting or using customer data. Companies should also regularly monitor their systems for any potential breaches or vulnerabilities and promptly notify customers if any issues are discovered. Additionally, it’s important to train employees on data protection and security best practices and to have the plan to respond to data breaches.
In conclusion, building customer trust is essential when using customer data with AI. Companies that take appropriate steps to protect customer data and to be transparent about their data collection and usage practices can build trust with customers and create more value for them.