How can data sharing improve customer experience and loyalty?

Customer Experience (CX) is the impression and emotion that an organization deliver to the customer at every point of the customer journey. Catherine DeVrye says, “It takes years to win a customer and only seconds to lose one.” It is a myth that data privacy can hamper the CX. Following 10 principles will ensure both: 1. Only Collect what is needed. 2. Encrypt the data in motion and rest. 3. Suitable Access control 4. Specific consent from the customer. 5. Purge the data after use 6. Use Privacy Enhanced technology 7. Allow the users to unsubscribe. 8. Have a fair data privacy policy and that should be known to the customer. 9. Use data for the given purpose only. 10. Carry out periodic privacy assessment of the systems.

Data sharing can improve customer experience and loyalty by enabling personalized services and tailored recommendations based on comprehensive customer insights. By sharing data across touchpoints, businesses can provide seamless and relevant interactions, anticipating customer needs and preferences. Enhanced understanding of customer behavior allows for proactive support and timely responses. This personalized approach fosters stronger relationships and encourages long-term loyalty.

Quite simply, data sharing boosts customer experience when it is purpose limited and transparent. When customers understand why you are doing something, and can trust the limits you've imposed on it, they feel more comfortable about it.

1. Personalization: Tailored Recommendations, Customized Marketing. 2. Seamless Experience Cross-Platform Consistency,Integrated Services 3. Improved Customer Support:Efficient Problem Resolution,Proactive Support 4. Enhanced Convenience: Simplified Processes: Unified Customer Profiles: 5. Better Product and Service Development Insight-Driven Improvements: Faster Innovation: 6. Increased Trust and Loyalty:Transparent Practices: Reward Programs: 7. Enhanced Security and Fraud Prevention. Collaborative Security: Real-Time Alerts. Practical Examples: 1. Retail: A customer who shops both online and in-store with a retail brand can receive personalized recommendations and promotions based on their combined shopping history. 2. Banking.

Data sharing or data collaboration using modern privacy enhancing technologies can help create a 360 degree view of your customer even without transferring data or ownership. This can help generate valuable insights and be leveraged to understand customer needs or offer more personalised experiences. In recent years it has become clear that consumers expect some degree of a personalised experience, especially in the digital world.

Customer loyalty is based and derived in customer experience: if clients feel and understand that services is good and trusted; and there truth associated customer experience and loyalty: like a relationship, you need to be protect, provide needed things and help to grow. Some example those topics related with data sharing are: 1- Protect it: secure your infraestructure and access control to share data. 2- Provide needed things: release new features related data sharing ( new dashboard, app, insight and so on) or remind good practices related it 3- Help to grow: show new chances to use their data by new or already available services.

1. Personalized Customer Interactions:Tailored Recommendations,Customized Communication 2. Seamless Omni-channel Experience:Unified Customer Journey,Cross-channel Insights 3. Enhanced Customer Service:Personalized Support,Proactive Engagement 4. Building Trust through Transparency:Clear Communication,Data Security 5. Improving Product and Service Offerings:Insight-driven Innovation,Feedback Loops 6. Enhancing Loyalty Programs:Personalized Rewards,Cross-brand Loyalty 7. Creating Memorable Experiences:Anticipating Needs,Consistent Quality, Practical Examples:E-commerce,Hospitality,Financial Services.

Customer loyalty, measured by repeat purchases and advocacy, hinges on factors like value, quality, and emotional connection. Data sharing plays a role in enhancing customer loyalty by allowing businesses to create more value and trust. For instance, it enables businesses to offer personalized benefits, discounts, or rewards based on customer data such as purchase frequency or loyalty program membership. Additionally, data sharing helps build trust and rapport by facilitating more effective, transparent, and authentic communication with customers.

Data sharing is a key ingredient in fostering customer loyalty. It enables businesses to reward loyal customers with targeted offers, discounts, or personalized perks. Beyond transactional incentives, using data to communicate openly and authentically builds strong, lasting relationships with customers.

When businesses use customer data to offer personalized experiences and anticipate needs, it fosters a sense of connection and loyalty. Customers appreciate when companies understand their preferences and make efforts to cater to them. Loyalty programs can also benefit from data sharing, as companies can tailor rewards and incentives based on individual behavior and purchase history. By consistently delivering valuable, personalized experiences, businesses can build strong emotional bonds with customers, increasing loyalty and encouraging repeat purchases.

GDPR has been in effect for roughly half a decade and there have been various rulings that have clarified scope / interpretation of its articles. In recent years organisations seem to be opening up more to the possibilities on utilising their data in a privacy centric way. Data sharing will have a positive impact on privacy as organisations can collaborate in a decentralised way instead of centralising all customer data with walled gardens like Meta or Google. Lastly I would mention that modern technology and data sharing platforms help reducing legal liabilities instead of increasing them.

In my knowledge, Data privacy work in following axles: - Structure of your data. - Possible usages of data. - How data architecture and business process work. - Trade-off between data usable and secury. - Security in data transfering. - Consent in data to share: what data will use and how i can use. - Verify standards, regulations and laws indicate about this topics: maybe can change process anything.

1. Building and Maintaining Trust:Transparency,Security Measures 2. Enhanced Personalization:Data-Driven Insights,Customized Experiences 3. Ensuring Compliance and Reducing Risk:Regulatory Compliance,Risk Mitigation 4. Improving Customer Service:Efficient Data Access,Proactive Support 5. Building Long-Term Loyalty:Value Exchange, Customer Engagement 6. Leveraging Technology:Data Management Platforms:Privacy-Enhancing Technologies,Examples of Success,1. Amazon,2. Netflix,3. Apple.

I have seen vendors disclosing at times data of their other customers out of desperations to close a deal. That is a HUGE RED FLAG to me being a cybersecurity leader. If you don't know how to respect the privacy of my data, you are not a capable organisation to handle my data. Hence, it is always important to ask such questions and do such due diligence before onboarding a vendor. And from the vendors' perspective, it is OK to say NO to a customer or potential customer if they are asking for certain information that you as an organisation is not comfortable sharing.

Data privacy is the right for individuals to control how their personal data is handled, governed by laws like GDPR and CCPA. Ethical considerations and social values also influence data privacy. Data sharing, while valuable, poses risks to privacy through potential unauthorized access or breaches. Therefore, ensuring data privacy and compliance during data sharing demands careful planning, management, and oversight.

1. Transparency and Consent Management Clear Communication Preference Management 2. Security and Data Protection Robust Security Measures Data Minimization 3. Personalization and Customer Insights Data-Driven Personalization Customer Segmentation 4. Compliance with Regulations Third-Party Agreements 5. Enhanced Customer Service and Support Integrated Customer Insights Proactive Engagement 6. Continuous Improvement and Feedback Customer Feedback Loop 7. Education and Empowerment Educate Customers Examples of Success 1. Starbucks 2. Airbnb 3. Nike

Some best practices are: - Apply authoritzation and authorization control in all time as possible. - Get inventory of privacy methods: set privacy preservation techniques with data based in structure to apply based in use cases. First security and privacy. - Get ID sharing management: replace real ID with temporal ID. It depends of use cases. - Get defined lifecycle of data sharing by product based in work lifecycle. - Integrate your consent management in your product: not all product must access data. - Don't stored your data sharing in local device without protection, and delete it when you don't need it.

🚀 To share data, these tips may be helpful: 1. Check if you have the consent of the data owner, otherwise avoid making use of this information. 2. Review the types of data requested and their necessity (for example: if you are an ecommerce company, it is not necessary to ask for data related to the buyer's health or children). 3. Verify that the strategies for data collection, loyalty, sales, among others, are aligned with privacy standards. 4. Always promote transparency in the use of information. Each company, platform, campaign or process is unique, therefore, the best tip will always be to review in advance, implementing privacy processes by design and thus mitigate future negative events🛡

Implementing data sharing best practices involves establishing clear policies and procedures for collecting, storing, and sharing data. This includes data anonymization and aggregation to protect individual privacy, as well as encryption and access controls to safeguard data during transmission and storage. Collaboration with trusted partners and vendors also ensures that data is shared securely and responsibly. Regular audits and reviews help identify and address any potential risks or compliance issues, ensuring that data sharing practices remain ethical and compliant.

Para o compartilhamento, é importante que o controlador se certifique que a parte que receberá os dados de seus clientes esteja em conformidade com a norma de privacidade e proteção de dados.

In my (biased) opinion the benefits of data sharing greatly outweigh the risks and challenges: - enhancing data subject privacy - data monetisation - potentially gaining competitive advantages - get to know your customer - reduce legal liabilities (when done correctly) In terms of challenges I think the most important one is financial. Recent research done in the industry shows that average spent on for example data clean room tech is around 200k per organisation. This obviously is a steep barrier to entry, not even mentioning required talent / knowhow.

Some benefits are: - Can monetize you data. - Define interaction and relationship between users and service. - Give the user autonomy to work. Some challenges are: - Use right privacy preservation techniques apply your data in business cases. - Avoid bad practices with data sharing by users. - Create a enviroment to manage security and privacy at scale by each data product. - Create a consent management platform and integrate it to systems.

Data sharing brings benefits like improved customer experience, innovation, and efficiency. However, it also presents challenges, particularly in data privacy and trust. Protecting personal data from unauthorized access, complying with privacy laws, and balancing stakeholder interests are crucial challenges. Achieving a balance between the opportunities and risks of data sharing demands a commitment to data privacy principles and practices.

Alongside the above benefits, it's crucial to consider the broader landscape of data privacy and security. Effective data sharing necessitates a diligent approach to safeguarding customer information. Beyond compliance with regulations like GDPR or CCPA, businesses must cultivate a culture of ethical data use. For instance, transparent consent mechanisms empower customers to control their data. Additionally, employing robust encryption and access controls ensures data protection against breaches. Striking a balance between leveraging data for enhancement and upholding privacy rights is paramount. This equilibrium enables businesses to harness the advantages of data sharing while fostering trust and respecting individual privacy concerns.

É preciso cuidado para não abusar de direitos e não infringir legislações e regulamentos no que tange ao compartilhamento de dados. De forma geral, se isso não for feito, é uma importante ferramenta não só para o comércio, mas também para a administração de empresas, que terá dados consistentes para ajudar na tomada de decisões.