Just as customers’ data is becoming more valuable, they are becoming more aware and concerned about how their info is used. As customers, we’re more powerful and have the option to develop greater control over our digital life. Here is the European Union’s General Data Protection Regulation (GDPR), deep delete, account laws and rights to be forgotten etc. With the rising populism, consumerism and analysis showing that trust in companies is rapidly decreasing, data science should prepare businesses for these concerns to intensify.
Having in mind that we’re all consumers ourselves, leaders start to understand the anxiety when very personal and private aspects of our lives may be exposed. This comes as a result of the digital traces we leave in cyberspace. To be willing to share your data means that you trust the company won’t re-purpose or re-sell it. However, here are the customers who are ready and willing to share more of their data for the community benefit in ways they highly value. It’s time for many companies to ask themselves-how we currently use is our customers’ data to help current or potential customers?
One example is using recommender algorithms. These have a significant influence over our daily routine, shaping our experience. But, what you’re likely to buy is not necessarily what you’ll be happy to own it. What you’re likely to click or read isn’t necessarily beneficial or enriching for you. Companies that leverage data for the customer’s benefit have an opportunity to differentiate by targeting not just what we click, but what is compelling on a deeper, more meaningful level. This deeper customer connection is why the technology of human-centric AI will become essential, touching areas like social science, psychology, humanities and art.
So, how can companies demonstrate consumer-centric value and create trusted data relationships?
Think about the customer across the whole life cycle. Harnessing the potential of data requires a shift from the sales mindset. Instead, customer engagement and commercial teams will need to explore how they can enhance value in the broader context, pre-sale and post-sale. Sometimes, offering proactive data insights requires a high degree of privacy and implicit permission, and might backfire if used wrong. But when it’s natural and helps customers get far more value from the product or service-you’re doing the right thing.
Use the data you already have to benefit customers. Users have a sense when data is used for the company’s benefits, rather than to deliver more value for themselves. Growing large amounts of data and just store them in big data warehouses doesn’t benefit anyone. However, when it’s appropriately used, businesses have a chance to target potential customers at a much lower cost. For example, suppose you’re a gaming affiliate website like SlotsWise.com. In that case, you’d be interested in your number of registrations, users that have played a particular game and accounts that have registered but haven’t returned to your website. This is the audience you want to target, as the chances they’ll convert to players are much higher just because you’ve already interacted with them. Going back to the data you already have with a new, customer-centric approach and leveraging AI opportunities, will uncover new ways to delight, grow and retain your customers.
Refocus your priorities and operations. As companies evolve and tailor their products and experiences, it’s only natural to see a significant transformation in their internal operations. They will have to reassess their focus on business processes, shifting to more personalised customer interactions that respond to the unique, evolving needs of individual customers. Data helps a lot with this-giving more real-time and insight into each customer journey and deliver more value. These expanded and tailored data plans will only be possible if companies are both able to build privacy processes, protect the brand and preserve customer loyalty.
The shifts we’ve mentioned above are, without a doubt, challenging. Nonetheless, the rewards will be beneficial in the long term for both parties. The competitive advantage in the business industry comes with provided trust and value. Technology is a power-up, but here it’s only a feature. Businesses that use the power of data to create value are the ones that will most likely grow and dive deep into multidimensional market growth.