Dive Brief:
- Customers value businesses that prioritize their data privacy, a February Broadridge Financial Solutions survey found. Broadridge commissioned CARAVAN to survey over 4,000 adults in the U.S. and Canada.
- Four in 5 customers say they would like transparency from companies about how they use personal data. Nearly two-thirds of respondents say they’re more likely to engage digitally with companies that offer security measures like Face ID and PIN code verification.
- “Data privacy is crucial to establishing trust with customers,” Ross Solomon, head of product management and customer communications at Broadridge, told CX Dive in an email. “Customers are more likely to engage with a business and share their information if they trust that the data will be handled responsibly.”
Dive Insight:
Companies that prioritize customer data privacy are more likely to keep their business.
Two in five consumers will avoid interacting with a company online if they have concerns about their personal data.
The survey found nearly half of consumers say they are willing to increase their spend with businesses that provide better customer experience. That gives companies all the more reason to look for ways to improve their CX.
“When it comes to customer experience, trust between the customer and the brand is the most foundational aspect, and data privacy is core to establishing that trusting relationship,” Solomon said.
Businesses should work to ease customers’ concerns, Solomon said.
“Ensuring companies are committed to data security and that they are transparent about relevant practices will help ease customer hesitation — especially when it comes to the integration of AI tools,” he said.
