Striking a balance between convenience and security

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 takes a look at online security and how it’s increasingly becoming an issue for CX.

Data is invaluable to the modern organization, but it is also a hot commodity among cyber criminals – and that is causing problems. ?

The Identity Theft Resource Center (ITRC) recorded 3,205 data compromises in the US in 2023, which affected 353 million individuals. It was a new record and, since the last record was set in 2021, the number of data incidents has increased 72 percentage points.

This has not gone unnoticed: our research into the Global State of CX this year found security is top of mind for practitioners at present. When we asked which three customer behavior trends influenced their 2024 CX planning the most, the demand for data/communications security was the fifth most selected answer, after convenience, speed and awareness of how AI uses customer data.

However, at the same time as we were conducting our research, emerchantpay?conducted its own study into payment trends in the UK as a means by which to gauge the popularity of Open Banking. When specifically asking 2,000 consumers about their payment journeys, this study found security (60%) is the number one factor influencing how consumers choose to pay online. Security was closely followed by privacy (41%), with speed (38%) and efficiency (34%) less of a priority for consumers than they are practitioners.

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There is a clear overlap in the top customer behaviors identified by practitioners and what customers want specifically in a payment journey. But is a disconnect emerging where consumers are far more concerned about payment and data security than organizations realize?

According to a 2023 survey of 1,000 US consumers, 60% will stop doing business with a brand that has suffered a data breach and 21% will immediately seek a new provider following an incident. Some, however, file a class action, as T-Mobile’s customers did after a major data breach in 2021 put millions of customers at a heightened risk of identity theft and phishing attacks. In early 2024, T-Mobile paid out $350 million to affected customers and invested a further $150 million in stronger cyber security. Practitioners clearly need to read the room.

Michael Hill, editor of CSHUB and PEX Network , says: “The balance between cyber security and CX is of huge importance for modern organizations who are largely dependent on both the secure handling/processing of data and customer trust, loyalty and advocacy. It takes just one bad security experience or ill-handled incident to drive away customers, who may never return.

“When CX is a central consideration in the design and implementation of a cyber security strategy it can be a key differentiator in competitive business markets, ensuring not only that customers stay but also helping to grow the customer base,” he adds.

Naturally, the teams responsible for keeping customers safe online want to introduce the most robust security measures possible, but as the appointed customer advocate, the CX practitioner must ensure these measures are also user friendly.

Here are seven tips on how to strike the balance, from Ankesh Agarwal, CCXP , director of group customer experience for UAE-based lifestyle group Majid AL Futtaim and a Top 50 CX influencer: ?

Create trust in the brand: This works for everyone and if you have an impeccable reputation in the market, people will be happy to spend the extra time.

Spread awareness: Run engaging campaigns for people who are less aware, this will help them understand the importance of the extra effort.

Make it easy, easy, easy: It should be convenient for customers to record their choices, read through data privacy policies and share their data.

Be transparent: Whenever you collect data tell your customers very clearly how data is stored and utilized.

Meet your promise: Respect customers’ choices and give them a way out if they want, treating opt-outs carefully.

Use the data to give back: Give customers personally curated content to make their life easier. Use their data for better service, VIP perks and preferential treatment.

Be on the right side of the law: Especially when working across multiple geographies.

And here are three links to help you on your way, including more from Ankesh…

Here’s something to inform you…

Here’s something to inspire you…

Here is something to help you…