By Joe Hemming
It’s a question that businesses throughout history have been trying to answer. The difference today, compared to say, 20 years ago, is that organisations have access to a wealth of information about their customers.
The amount of data generated is almost impossible to comprehend: estimates say more than 2.5 quintillion bytes of data a day.
By 2020, it’s thought that 1.7 megabytes of data will be created every second for every person on earth 1. In practical terms, it’s never been easier for organisations to develop a deep understanding of individual customers.
They have access to personal data that allows them to deliver hyper-personalised products and services on an unprecedented scale.
However, while digital technology may offer a wide range of direct routes to the customer, it can also be seen by customers as a barrier to communication or even a way of shielding malpractice, particularly where data usage is concerned.
Without careful management, whether the barrier is real or perceived, there is a danger that customer trust will be eroded.
Accruing, managing and using data comes with an ever more complex raft of regulatory, legal and ‒ as the UK government laid out in its National Data Strategy 2‒ ethical considerations.
Customers are willing to share their personal data, but the mistake many organisations make is failing to equate data ‒ that is, personal information ‒ with the ultimate owner, the customer.
As Capita highlighted in Beyond 2020: Helping you embrace transformation, the way organisations adapt to a data-driven world in which customers wield growing power will define their future success.
In this, the latest part of our series looking at the priorities for businesses in the digital age, we discuss the challenges organisations face in forging a mutually beneficial relationship with customers. It is one that must be built on respect and trust, and a focus on improving the customer experience.
1 www.digitalinformationworld.com, 2 www.gov.uk