The increased availability of customer data presents lucrative opportunities, but organizations that wish to take advantage of it must respond to growing privacy concerns and regulatory scrutiny, according to IDC.
The data analytics company says these companies also need to build trusted data initiatives by increasing the capabilities required for digital reliability. This can include expertise in privacy, data security, and regulatory / industry standards compliance to keep customer data under control.
In the wake of the COVID-19 pandemic, many organizations are making new investments in customer experience (CX), particularly in data management and customer data platforms, to drive greater value from customer data , improve resilience and accelerate growth, according to IDC.
Leading CX organizations with better data and platform capabilities have proven to be better positioned to adapt and take advantage of the opportunities of the COVID-19 pandemic, according to IDC.
Daniel-Zoe Jimenez, Associate Vice President of Digital Transformation, Future of Customer and Consumer Research at IDC APAC, Says Companies Are Turning to CX Technology Providers to Fill Gaps internal expertise as they strive to improve their data capabilities.
âIn helping organizations master data, technology providers need to bring their expertise in protecting the privacy and security of customer data,â says Jimenez.
âAdditionally, vendors need to add value through best practices in privacy and security policies and regulatory / industry standards that contribute to digital reliability. “
The study shows that CX leaders and followers are investing in customer data platforms to integrate and leverage data from multiple sources. However, many organizations still lack the integrated data infrastructure required to combine and collect customer data from disparate data silos and technologies within their walls.
For a significant portion of CX subscribers, the complexity of data integration and privacy protection requirements push them to leverage third-party sources using data management platforms instead of exploit information from first party data.
The study further shows that most CX subscribers score low on digital trustworthiness in part due to lack of expertise in protecting customer privacy and data security. Systems that host Personally Identifiable Information (PII) are identified as one of the areas of high reliability risk when conducting digital business.
âFor organizations to be successful in extracting exceptional value from their data mines, they must overcome the challenges of data integration and be able to enforce privacy protection for their customer data,â says Lawrence Cheok, IDC APAC Senior Research Director for the Future of Customer and Consumer Research. .
IDC says that by 2025, privacy will have been redefined as the value of data. The organizations will provide loyalty services in exchange for consumer data, with 60% of consumers in APEJ developed countries participating.
As organizations embark on initiatives to exchange value for customer data, they must simultaneously address the fundamentals of digital reliability in privacy and data security to ensure that customers are willing to exchange their information for value.
CX technology providers who add value to privacy and data protection expertise will accelerate the time to market for organizations’ CX initiatives and stand out, according to the data analyst firm.