To Build a Successful Brand, Make Data Security Part of the Customer Experience

Concerns over data security have never been bigger—and they’ve never been a bigger roadblock for brands trying to win over skeptical customers. The Identity Theft Resource Center found that in 2023 alone, 3,205 publicly reported data breaches in the U.S. affected over 353 million people.

The rise of AI has made data security an even greater concern. Not only does AI enable more sophisticated attacks, but the large quantities of data available through LLMs present additional privacy concerns. As consumers prioritize data security more and more, making this a central part of the customer experience can become a valuable win for brands.

Avoid collecting unnecessary data

The amount of information most companies track can be truly astonishing. Personal identifying data—such as location, email address, and IP address—as well as engagement and behavioral data from all interactions with the company (including purchases and social-media activity) are just a few tracked data points. From website cookies and pixel tags to customer loyalty programs, call records, and even GPS tracking, data collection has become pervasive.

As far back as 2015, the Harvard Business Review noted that this often resulted in companies collecting personal data they didn’t actually need on the off-chance they might be able to use it later. Even more problematic, this highlighted the mindset of asking for forgiveness rather than permission.

This lack of transparency has eroded trust online. Globally, 63 percent of consumers feel companies aren’t transparent about data collection and use. Forty-eight percent have actually stopped using a company because of privacy concerns. Opt-out messaging should always be clear and easy to understand, so customers know what they are agreeing to. Otherwise, brands risk complaints and lost business later.

To make data security part of your customer experience, the first step is to evaluate what data you collect and why. If it isn’t absolutely necessary, you’re probably better off not using it. Many brands even make this element of security awareness part of their cybersecurity marketing, reassuring customers that only essential information is collected.

Take clear, actionable steps to protect collected data

Regardless of the scope of the information you collect, you must take actionable steps to protect customer data every step of the way. Brands can and should implement a wide array of security practices to protect customer data and minimize the risk of a breach.

Security tools like firewalls and antivirus software, as well as regularly updating and patching all systems and software to mitigate vulnerabilities, are an essential start. The use of such tools and systems can be regularly featured throughout the web or app experience. Even basic labels or badges highlighting which security tools you use will help build trust among consumers.

Of course, brands also need to account for human error—both that of their employees and their customers. Human error is consistently cited as the top cybersecurity risk, whether through phishing scams, weak passwords or other issues.

In a customer-facing environment, brands can further protect customer data through steps such as requiring complex passwords or biometric logins. Brands should also monitor for potential phishing attempts and warn customers about fraudulent imitators. 

Helping individual customers protect themselves can be just as important as broad-ranging initiatives to protect a company’s entire data set. Even when user error is to blame, customers are likely to lose trust in the business if their personal data is stolen. 

Tell your customers

If you want to win big, you need to spread the word about your data security efforts. Don’t hide this information away. Clearly communicate your commitment to data security, including the specific steps you take to protect your customers. Full transparency and actively broadcasting this information is what will turn data security into a winning force for your brand.

Of course, you must also ensure that your actions consistently align with what you tell your customers. Gaining trust is hard, but losing trust is easy. Any changes to your data security practices should be proactively communicated to your customers. 

Cisco research reveals that 81 percent of customers feel that how a company treats client data shows the level of respect they actually have for their customers. Many brands spend thousands or millions of dollars on messaging to tell their customers that they care—but then their actions regarding data security paint a different picture.

Data security can be a powerful differentiator

While advances like interactive content may seem flashier and more exciting, data security should remain a top priority as you look for ways to improve your customer experience. By focusing on the needs of your audience and taking actionable steps to protect the data they share with you, you can build trust in a way that helps create lasting loyalty for your brand.