How do growing brands with fledgling reputations respect the value of their customers’ data while using it to create the best possible CX experiences? We share three tips that leverage customer expectations in digital interactions.
Eighty-six percent of online shoppers are willing to pay more for a great customer experience (CX).[1] Once, this might have only meant with their money. Now it can mean exchanging something equally precious—their data. And customers are more aware of their data’s value than ever.
They’ve seen how much they stand to gain when brands hyper-personalize their experiences— whether that’s enjoying a seamless buying journey or reaching faster and more satisfactory resolutions. But customers can’t ignore the heavy price they’ll pay if their data falls into the wrong hands—or is exploited by the businesses they trust.
So how do growing brands with fledgling reputations respect the value of their customers’ data while using it to create the best possible CX? Below are three tips.
86%
will pay more for exceptional CX
72%
will respond only if message is personalized
Tip #1: Show that the data is worth sharing
In exchange for their data, customers expect more (and more regularly). In fact, 72% of customers say they’ll only interact with a brand’s messaging if it’s personalized to them.[2]
The best customer service teams show customers how their data is used to enhance experiences every chance they can. They show this by leveraging insights such as: 1) the communication channels a customer prefers; 2) the outcomes of all interactions; and 3) how efficiently the customer service agent got there. Using data these ways is efficient because the data is low-risk and high-reward.
Retailers, healthcare providers, and financial institutions alike can use these insights to deliver the kinds of experiences that prove you’re putting customer data to good use.
Tip #2: Know what you need (and stop there)
Bill Winkler, Principal Researcher of the US Census Bureau, claims that up to 95% of data analysis time is spent cleaning the data. If he is right, then it certainly helps to be picky. Customers don’t want companies to know everything about them—only what you need to deliver the experience they expect.
In our experience, granular data collection is most efficient for brands (and more attractive to customers) when there’s a clear strategy for how they’re going to use it. Bank of America, for example, collects data that it knows will help customers prioritize their financial goals. Ally Bank uses data to feed its AI financial advisor. External providers regularly sit down with clients weekly to make sure that, in the course of every customer interaction, agents are gathering the data they need for the strategies the clients set.
Tip #3: Give your customers credit where it’s due
Digital-first laws and regulations have introduced penalties for companies that don’t respect the value of data. It means lots of customers know the rules and look for the accreditations.
We find that, when we speak to our clients’ customers about something as valuable as their data, they don’t mind getting technical. Standards like ISO 27001 and GDPR, as well as industry-specific mandates like healthcare’s HIPAA, can be a valuable talking point. They are valuable not just because they prove that you’re dedicated to protecting customers’ data, but that you don’t take their trust for granted.
Insights well-earned and well-leveraged
Customers want to see their data being used to enable great experiences, they want to get as much as they can from as little as possible, and they want to know you don’t take their trust for granted.
Striking the data balance takes a brand, its customers, and a CX-first team working together. Every case is different but every case has the same goal. That goal is to be as transparent as possible with customers so you can earn—and keep—their trust.
Want to see what’s possible when you put these tips into action? We’ve outlined how we help brands earn their customers’ trust—and repay it with great customer experiences. Download “3 Ways CX Data Helps Customer-Centric Banks Drive Loyalty” now form-free.
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