Responsible use of customer data is a trust multiplier – or dealbreaker
By our News Team | 2022
Brands believe they are already trusted custodians of consumer data, but most Asia-Pacific consumers have concerns.
Emerging from the pandemic, digitally savvy consumers in the Asia-Pacific (APAC) region have reset their expectations of brands. They now expect companies to go above and beyond in community engagement, workplace culture, and delivering relevant, personalised experiences in the digital economy.
These set a new watermark for what consumers demand in exchange for brand loyalty and spend, says a recent study by Adobe.
According to the Adobe Trust Report 2022: APAC, responsible use of customer data is a clear trust multiplier or dealbreaker. It sets out what’s important to consumers when handing over their data and what they expect in return.
Photo by Tim Douglas via Pexels
Chief Marketing Officer and Head of eCommerce and Digital business at HDFC Life, an Indian-based insurance company, Vishal Subharwal, agrees. He believes expectations of the digital experience have changed and that customer data is an essential part of adapting to the shift.
“Any one brand doesn’t set consumers’ online experiences; rather, it is shaped and reshaped by their collective digital experiences when interacting with different technology companies, OTT services, eCommerce and others,” Subharwal says.
“So, the expectation now is that if I’m online and I click a button, my job will be done. And that creates a huge differentiation between expectations and the actual experience. We must continually push ourselves to relook at the data we have on consumer journeys and use it to optimise the user experience.”
Closing the data trust gap
The Adobe research highlights a disconnect in the perceptions of brands and consumers. In short, brands believe they are already trusted custodians of consumer data, whereas most consumers have concerns.
The research finds that the majority of APAC executives agree that to gain consumers’ trust, it’s important to use data transparently and securely while delivering better customer experiences. And executives believe they’re doing a good job, with 95 percent or more saying consumers trust them to keep their data safe and use it responsibly.
However, 85 percent of APAC consumers express concerns about how companies use their data, and almost half say they’re very concerned. Another factor that consumers and brands may disagree on is the value they receive.
Over three-quarters of APAC leaders believe the benefits customers receive from collecting their data outweigh potential risks, while only 38 percent of consumers have the same view.
Subharwal says getting the data–trust exchange right can be a delicate balance for businesses, noting that: “Customers are willing to provide personal information if it improves the product or service offering and ultimately leads to a better consumer experience.”