To prepare you for Hard Talks on the Big Ideas Stage Friday 7 May, with host Anders Høeg Nissen and four lovely speakers. We bring you a very interesting article from TimeXtender CEO Heine Krog Iversen. Sign up for the Hard Talk ” How data with with mind and heart will change your business at Friday the 7 at 9.00.
“It is time for a new paradigm, where data is not the only factor in our decision-making process”. Heine Krog Iversen, CEO of TimeXtender, enters Hardtalk on Big Ideas Stage.
For a moment, picture data trust in 10 years. This thought can paint one of two pictures:
In the first, customers have lost all trust in technology because of the misuse of data. In this barren landscape, organizations no longer have access to customer data, and as a result, are without one of the most valuable resources organizations have available today.
In the other, organizations not only have this data, but use it with transparency, accountability, and clarity to better inform their business decisions and the interactions they have with their customers.
The thing is trust and tech walk hand-in-hand, but the industry is on the precipice of losing customer trust, and in the process, the data that goes along with it. Restoring trust is therefore vital to organizations if they want to keep this asset available to them. This is where data management fulfills a crucial role.
This article will look at data management as the antidote to growing customer concerns.
The Problem with Trust
Data is the currency of the digital world and is infinitely valuable for organizations to drive customer engagement, improve marketing, and increase revenue. In fact, research suggests that personalization — one of the main objectives of customer data usage — can deliver up to eight times the return on investment on marketing spend and can lift sales by 10% or more.
The problem, however, is that customers are increasingly averse to their data being used irresponsibly by organizations. This increasing level of distrust can be due to prior data breaches hitting mainstream news, or even documentaries that call attention to customer fears based on a lack of data privacy.
Irrespective of the reason, over 75% of customers agree they feel violated if their data is not secure, and 74% think that organizations are not transparent in how they get permission to use their data. This only relates to the situation where there has not been any breach. If there has, most customers agree that they will trust the company less, and even worse, trust all companies who collect their data less.
And therein lies the challenge. This feeling amongst consumers about how their data is used not only erodes the trust in organizations that have their data stored, but also erodes trust in the entire industry. For organizations, this marks a need to clearly and explicitly communicate their willingness to comply with data trust regulations and to address the concerns of customers, or in other words, complete transparency.
Regaining Consumers’ Trust
Communicating transparency is only part of the equation. Organizations must also look at their overall data management strategies. Without accurate, quality data that is protected, they will never achieve the level of transparency that customers need or expect. In fact, one of the keys to building customer trust and creating transparency is through effective and efficient data management.
In other words, organizations should focus on providing customers with the tools they need to manage their own data, which in turn would incentivize customers to share their data. This can include, for example, best practices like explaining the benefits that customers will receive if they share their data, giving them full control over the types of data they share, and offering them the tools which allow them to edit their own privacy settings.
Once the data is in possession of the organization, they should take every step necessary through their data management processes to secure this data and only use it for the reason it was given. Here, organizations need to use platforms and services that can collect data at scale and create a single point of trust where the data can be proofed, categorized, and protected, while also supporting the necessary integration, sharing, discovery, and governance for companies to track and trace said data.
So as the other part of the equation to restoring trust, organizations should use the right tools to not only protect data, but also to make it available to the people that need it to build better customer experiences and drive more innovation. The challenge, however, is that it is increasingly difficult for organizations to keep up with these demands when data is accelerating at lightning speed.
The Data Automation Solution
The solution to these organizational challenges is investing in data management platforms that do the heavy lifting for them. Automating these data management processes helps organizations in ensuring data of the highest quality, effective data governance, and a variety of self-service analytics options that allow them to manage the data and its security, while at the same time giving access of the data to the right people internally.
Automation also eliminates manual processes, increases operational efficiency, minimizes the risks of data errors, and leads to lower costs in the long run. It enables organizations to rely on data for fast, strategic decision-making, while also taking heed of customers’ concerns.
When it comes to customer data, trust is currently in short supply. It will take specific and concerted efforts by organizations to regain this trust. Luckily, efficient and effective data management offers a solution to this challenge, and it is up to organizations to take advantage of this powerful solution.
At TimeXtender, we are on a mission to empower organizations with instant access to data, enabling them to make quality business decisions with data, mind, and heart, while putting the necessary safeguards in place to satisfy customers’ concerns relating to their data. Visit our website if you’re part of an organization that could benefit from automating your data management processes.