How data security impacts customer acquisition

The CX Network Weekly 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’s edition looks at data. As mentioned in recent weeks, the explosion in AI use cases for CX has made data one of the biggest CX trends to watch. On the one hand, customers are wising up to how AI uses their data, but on the other, practitioners are becoming more aware that the key to their digital, omnichannel and AI-powered CX success is data quality, centralization and utilization.

But data literacy, silos and insights all remain top challenges for those in CX. In fact, in our 2022, 2023 and 2024 Global State of CX research, data was among the top five challenges highlighted by practitioners. Specifically in 2024, data-related responses emerged as the top CX trend, the second biggest investment priority and the fourth and sixth biggest challenges. With more AI and generative AI capabilities now available, the need to get data in order is only becoming more important.

As a result of these trends, the focus topic for our 2025 research into the Global State of CX is data. The survey is now open here and we invite all CX practitioners to share their experiences, regardless of whether or not they’re an official network member. The results are out in March 2025.

But unlike previous years, we also want to know about your organization’s attitude towards data security.

With almost everybody in CX now well versed on the fact that bad data create bad outcomes (i.e. rubbish in = rubbish out), data security is emerging as the next big concern – and it’s easy to see why.

Around the world, millions of customers have had their data stolen after buying? t-shirt, taking public transport in London , accessing the internet in France, getting health insurance in Australia, or even researching their ancestry . And they’re clearly keen to stop it happening again.??????

Last year, our research found 54% of practitioners strongly agreed that data privacy and security is becoming more important to customers and 32% said customer demand for data and communications security is one of the top three customer behaviors influencing their role at present.

The impact on CX cannot be understated – not only are customers sharing false information more frequently – therefore impacting the success of personalization and AI – they’re more likely to use such tools as Firefox Relay to mask their email ID.

As outlined by Musa Hanhan, CCXP via the links below, data is the most underappreciated asset in your company – but that also rings true to the bad actors outside your company.

Earlier this month in Europe, the EU Network and Information Security Directive (NIS2) came into effect, broadening the scope of cybersecurity obligations for public and private sector organizations, and a wide range of technology providers. Naturally, this has massive implications for all B2C and B2B organizations with European customers.

But that isn’t all we want to tell you: in the current landscape robust data security is an advantage, not a burden.

When we caught up with cyber security and compliance expert Jonathan Armstrong, partner at Punter Southall Law, he said: “Data security can bring competitive advantage, and it certainly increases the value of an organization if it goes through a sale or fundraising process.”?

Earlier this week the latest Hiscox Cyber Readiness Report landed. But the biggest headline wasn’t the fact that 67% of organizations globally have experienced an increase in cyber incidents over the past 12 months compared to the previous year.

No, the biggest headline is that almost half of the businesses impacted by these attacks have had difficulties in attracting new customers, with 47% noting customer acquisition is now a challenge, an increase of 20% on the previous year.

To help you get ahead on cyber security, here are three links inform, inspire and help your response…

Here’s something to inform you…

Here is something to help you…

Here’s something to inspire you…