Honesty and transparency appear to be growing more and more important to consumers whose trust in institutions to safeguard their personal information constantly is being tested by news of hackers breaching companies’ data servers. The fact that many entities wait weeks or even months to inform consumers their data has been exposed only compounds that lack of trust.
A Verizon-sponsored global survey of 6,000 consumers, conducted by Longitude, showed that people have become increasingly concerned about privacy and data security. Given that fact, the companies concluded that generating a consumer service experience (CX) that engenders trust should be an essential part of the planning discussion for all business sectors.
“The customer is king when it comes to a brand being successful,” Verizon Global CX Practice Managing Director Gordon Littley said in a press release. “Today, CX technology has the power to secure, enhance and stimulate a brand’s relationship with a consumer – but it should not define, nor limit them. Often the promises made by new CX technologies are prioritized ahead of individual customer preferences and desires – this shouldn’t be the case. We must remember that every customer is an individual and wants to be treated that way. Technology innovation can help brands stand out, but customer service basics remain vital –the best relationships will be built on mutual trust and simplicity.”
Nearly 70 percent of respondents indicated that they place significant value on honesty and transparency in regards to how their personal data is used when deciding whether to use a company’s products or services.
Forth-two percent said companies should clearly communicate their compliance with data regulations.
The survey indicated that many consumers are putting security before convenience when their personal data is at stake. Sixty-two percent of respondents said they rarely save their banking details when dealing with a company online.
The results also shined a light on one of the most prevalent lingering effects of a data breach – reputational risk.
Consumers in the Americas were the particularly unforgiving of data breaches among worldwide respondents, with 29 percent of U.S. respondents reporting that they definitely would avoid using a company that experienced a data breach. Additionally, 63 percent said they potentially would avoid the company for some period of time.
The survey also showed that innovation can help institutions build trust, although many consumers appreciate a personal touch as well. Specifically, the results showed that 42 percent are open to companies finding new ways of communicating with them, such as via wearable devices or voice-activated personal assistants – 55 percent of which were 18-24 years old, compared to 47 percent of 25-65 year olds surveyed. Sixty percent also wanted to be able to switch between communication channels easily. The same percentage said access to a good mobile app would improve their perception of a brand.
Old-fashioned face-to-face communication still has its place as well, with 34 percent of those surveyed saying they would switch to a different provider if they were unable to speak to a real person, and 21 percent indicating they would do so if they could not locate a customer service telephone number.
Consumers valuing personal communication varied in age, with 54 percent indicating that they preferred live telephone conversations to all other communication channels – 38 percent of those being 18-24-year-olds and 46 percent being 25-34-year-olds.