AI needs data but customers don’t want to share it

The CX Network Debrief is the LinkedIn Newsletter from CX Network. Each week we share our take on a key development in experience management, with links to CX Network resources that can inform, inspire and help your organization’s response.?

This week we focus on AI and how businesses must strike a balance between their operational efficiency targets and customer expectations. New research from Twilio shows that 92 percent of businesses are using AI-driven personalization to drive business growth, but only 41 percent of customers are happy about it.?

The 41 percent feel uncomfortable with companies using AI to personalize their experiences and only half of all the consumers questioned trust organizations to keep their data safe. The issue isn’t new; CX Network Advisory Board member Jan Richards told us during CXN Live: Customer Self-Service 2022 that companies have eroded customer trust through years of overselling and data breaches.

If brands wish to drive customer loyalty and improve retention in future, Richards said the first step is to earn the trust of customers and preserve that trust during all interactions, not just self-service.

On how organizations can demonstrate they are trustworthy, Richards explained: “CX leaders need to collaborate closely with marketing, IT, security, risk and any other departments that are important, to carefully design and measure journeys based on compliant standards that vary by industry, business type and individual customer.”

She added: “We should include privacy related KPIs and metrics in our CX measurement programs to measure journey performance.”

On how this can be rectified, Chris O’Brien, SVP of product management at M&T Bank, told us during CX Network’s?All Access Customer Communications Management that organizations should ask for data after they have gained consumer trust by proving the value of their products first.

As Twilio’s figures demonstrate, after many years building momentum, AI is being embraced by businesses across the board. Our figures back it too. Later this month we publish our 2023 Global State of CX report which confirms – spoiler alert – that of all the trends on the CX practitioner’s radar at present, two of the top five concern AI.

This marks a growing awareness of AI’s vast capabilities and application potential in CX, but without the trust of customers the road to an AI-powered, automated and personalized future will not be smooth.

The end of third-party cookies may help consumers to come round to the idea that not every organization is simply out for their data. But every organization must play its part to win the trust of consumers around the world. Our recommendations include:

• Demonstrate you are using the data for the customer’s benefit, not yours.
• Use your customer data to personalize and assist by removing the focus on the next sale. Does the data say your customer likes beach holidays? Send them helpful content to make the most of their next trip instead of links to swimwear or hotels.
• Audit data regularly. If a customer hasn’t interacted with your brand since they bought a single t-shirt five years ago, you should probably stop emailing them every week.

There’s a long way to go yet, but if you want to reap the rewards of AI in your organizations, customers need to be on board.

This week’s recommended reads cover personalization, AI-based CX strategies and how some products are using customer data to deliver trust-building, AI-powered support.?

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And here is something to inspire you….

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