Providing Personalized Experiences While Ensuring Data Privacy
Personalized customer experience (CX) has become one of the key differentiators for retailers, and today’s digital-savvy customers expect retailers to provide a seamless CX both offline and online. In fact, 82 percent of customers are even willing to share their personal information for personalized experiences. However, customers have also become conscious of how their data is stored and used. Such vast availability of data does enable retailers to tailor experiences, but it also makes them a prime target for malicious hackers.
Data-driven technologies such as advanced customer relationship management (CRM) tools help retailers tailor interactions with their customers. However, if not deployed appropriately, these solutions may put retailers at risk of compromising customers’ personal data. It's vital that retailers adopt appropriate technologies and measures to ensure data privacy.
Why Retailers Must Not Skimp on Data Protection
Retailers that collect and harness consumer data are also responsible for protecting it. More than half of consumers globally (53 percent) make purchasing decisions based on the company’s reputation for protecting its customers’ data — the figure increases to 70 percent for customers in Latin and South America. Retailers that fail to protect consumer data violate customer trust. In reality, 40 percent of people claim that they stop purchasing from a company when it violates their digital trust.
In addition to the loss of consumer trust and reputational damage, retailers also have to face huge fines from watchdogs for violating data privacy laws and failing to protect consumer data. Whether fines from watchdogs or reputational damage — or in some cases, both — data privacy violations can significantly damage a retailer’s growth. In order to secure data while harnessing it to its full potential, it's crucial for retailers to select their technology solutions mindfully.
GDPR Compliant CRM: An Essential Part of 2023’s Retail Tech Stack
There are a range of CRM tools available in the market, but retailers must invest in the technology with a considerate focus. It's essential to understand that a CRM tool should not only fulfill retailers’ business needs, but also ensure the safety and security of their data.
While selecting a CRM, retailers must ensure that the solution is GDPR (General Data Protection Regulation) compliant, and that it adheres to strict guidelines while keeping data secure. Furthermore, an appropriate CRM should enable retailers to store consumer data securely in a separate repository, which is accessible only when required by associates, without ever revealing or importing the data into a local system. This helps retailers minimize the risk of a breach — both internally and externally — and makes data security simple, easy and compliant.
Standing Out From the Competition
The security of their data has become just as important as price and product quality for modern customers. Stringent changes in data privacy laws make it more important than ever for retailers to have the right strategy and technology in place to ensure data privacy. Retailers that want to win consumers’ trust and provide them with the ultimate personalized experiences must lean on technologies that can both help them curate CX and protect data.
By deploying an omnichannel solution that's integrated with their wider retail technology, such as e-commerce platforms, order management, in-store point-of-sale (POS) solutions and CRM, retailers can stay up-to-date with information about their customers and store. Data can be fed automatically into these solutions in real time. This enables retailers to make more informed decisions that enhance efficiency and can put them ahead of the curve. Retailers that harness advanced omnichannel solutions integrated with GDPR-compliant CRM can not only ensure complete data privacy for their customers, but they can also significantly enhance their customer service capabilities.
Amber Hovious is vice president of marketing and partnerships at Teamwork Commerce, a leading omnichannel solution provider.
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Amber Hovious is the vice president of marketing and partnerships at Teamwork Commerce. She's responsible for building out the marketing strategy, business growth and approach as well as cultivating a wide array of partnership relationships to drive long-term success.