Privacy vs Personalization in AI-Driven CX

Personalization plays a pivotal role in enhancing CX by delivering tailored interactions that resonate with individual customers. Indeed, consumers today expect businesses to understand their preferences and anticipate their needs. A recent study by Gartner revealed that 71% of B2C and 86% of B2B customers expect companies to be well-informed about their personal information during service interactions.

However, this heightened level of personalization often necessitates the collection and analysis of vast amounts of personal data, raising significant concerns about data privacy and customer trust. This makes personalization a double-edged sword: while it can significantly enhance customer satisfaction and loyalty, it also poses risks related to data security and privacy.

And customers today are increasingly aware of how their data is being used and are becoming more vigilant about protecting their personal information. The problem is, only 25% of consumers believe companies handle their personal information responsibly, and 87% will take their business elsewhere if they feel their personal info is not safe.

Building customer trust cannot be overstated. A recent study by Salesforce reveals:

• 88% of consumers trust companies that don’t share personal information.
• 90% of consumers will more likely trust companies that have a firm privacy policy.
• 92% of consumers appreciate having control over what information is collected.

As a result, businesses must navigate the delicate balance between leveraging data for personalization and ensuring robust privacy protections to maintain customer trust.

Hit the link below to discover how to personalize CX without compromising privacy: