Computerworld, Australia: Senior Director at Cognizant’s Center for the Future of Work Says Companies That Make Transparency and Open Communication Their Biggest Assets Will Enhance Their Brand Value

“Have you ever come across something that made you think a particular company was reading your mind? Perhaps, it was an ad for a shirt you almost bought, or you got a call regarding a product you just read about online,” writes Manish Bahl. “These advanced forms of data-driven customer engagement are fascinating as companies are increasingly leveraging them to serve customers in their moments of need. However, there’s a thin line between providing a ‘personalized’ service and being ‘creepy’, and companies are struggling to draw that line, impacting consumer trust in brands.” Excerpts:

“According to a recent Cognizant survey of 2,404 consumers across Asia-Pacific, 91% of respondents were ‘concerned’ or ‘very concerned’ about the privacy of their data online.

We are living in a time in which technological advances are outpacing the rate of legal and cultural constructs, causing significant consumer confusion, even fear, when it comes to trust.

This presents a challenging dilemma for businesses. On the one hand, consumers are demanding more personalized experiences, while on the other hand, they don’t trust those businesses with their data needed to deliver personalization.

In essence, customers are looking for a transparent relationship with the brands with which they’re sharing data. As with any other relationship, this is key to building trust.

Open communication to provide a clear view of how a customer’s data is being used and shared is no longer a ‘nice to have’ feature, but has become a new competitive differentiator for businesses.

In an age where ‘try before you buy’, refunds, and exchanges are no longer a request, but an expectation, it should come as no surprise that quality products and fair pricing can significantly influence how much a consumer trusts your brand.

It’s important for companies to walk the talk to build trust with consumers.

With the growth of the Internet of Things (IoT), artificial intelligence (AI), virtual reality (VR), and data-centric marketing technologies, the issue of data privacy is only going to become more severe.

Companies that make transparency and open communication their biggest assets will enhance their brand value. But companies that mislead consumers in any way about how their personal data is used will not be forgiven and are increasingly at risk of putting themselves on the path to self-extinction.”

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