As the volume and value of consumer data continue to grow, trust will become an increasingly potent competitive weapon. An organization that carefully manages how it uses consumer data will find that its customers are more willing to grant access and usage of that data—a factor that can dramatically sharpen its competitive edge.
In this video, BCG senior partner John Rose outlines the challenges of collecting, managing, and securing personal data. Overcoming those challenges will not only keep customers happy but also create more value.
Applying the right analytics and models to big data can provide new insights that will greatly benefit your business. However, it’s critical to ensure that these efforts maintain the trust you have already built with consumers.
Customers need to trust that information about them will be well stewarded, meaning that it will be used only for the purposes stated by the organization. Companies that excel at creating trust can increase the amount of consumer data they can access by at least five times in most countries. That data can meaningfully shift market share and accelerate innovation, creating a “trust advantage.”
Making trust a top priority requires a two-pronged approach.
Externally, it is critical to explain all safeguards to customers and inform them when oversights occur. Companies should also give consumers some level of control over how their data is used. This type of transparency is essential to maintaining consumer trust.