B&T, Australia: Senior Director of Cognizant’s Center for the Future of Work Says Consumer Trust is a Quid Pro Quo That Needs to be Handled Delicately

“As organizations become more digitally focused and use increasing amounts of personal data to provide customized experiences, maintaining consumers’ trust has never been more critical to business success,” writes Manish Bahl. Excerpts:

“A recent survey by Cognizant of over 2,400 consumers across the Asia-Pacific found 58 per cent of consumers felt that they had little control over the use of their personal data by companies.

This is a major issue as trust motivates spending and loyalty. What most organizations still don’t understand is that a loss of trust means a loss of business, whether it is in the short or long term.

In an age where digital sharing on media platforms is commonplace, consumers are happy to let organizations they like and trust access personal data, as long as they are receiving something in return.

Organizations must understand that each piece of information they get from consumers has a certain perceived value. Consequently, when consumers share a specific type of information, they expect a certain level of ‘reward’.

Obviously, the higher the perceived value of the information, the less the consumer will be willing to share it, and the more the organization will have to give in exchange. In other words, you need to put yourself in your customer’s shoes, and ask: ‘Is the risk of sharing personal information worth the return?’

Consumers want to see and feel that the company using their data is grateful, and acknowledges the value of the information that is being shared. This includes curating experiences and tailoring goods and services to the customer, but also going beyond this by communicating effectively and transparently about how their data would be handled and how it will be used to make their experience better.

In an ever more connected environment, companies must actively position themselves as transparent and effective communicators if they want to establish a trusted relationship with their customers, and continue to use personal data to increase loyalty and sales.”

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