Delivering exceptional customer experience (CX) has the power to strengthen brand loyalty, boost retention, and create meaningful connections between customers and organisations. However, when handled poorly, it can result in lost customers and a tarnished brand reputation. As technology evolves, businesses have unprecedented opportunities to enhance CX through AI-driven personalisation. In this blog, we explore how AI can transform customer interactions while carefully balancing the challenges of data privacy and compliance.
AI uses technology such as predictive analysis, machine learning, natural language processing, and generative AI to personalise and enrich the CX in sectors such as finance, ecommerce and hospitality in a variety of ways:
But while AI-powered CX tools aim to enrich the customer experience and provide an organisation with detailed information about who is interacting with them and why, some customers are concerned about how their data is used, and how secure it is.
The UK has some of the strictest data protection legislation in the world to ensure that consumer privacy is maintained to the highest GDPR standards. The Information Commissioner’s Office has a set of guidelines for anyone wishing to develop and deploy AI using personal data, which focuses specifically on senior management’s role in rolling out AI services.
GDPR breaches can not only result in reprimands, enforcement notices and fines (up to £17.5 million or 4% of an organisation’s worldwide turnover) but can also engender severe trust issues with customers, leading to a loss of reputation and ultimately decreased revenue.
How, then, can organisations develop strategies for responsible data use that builds trust and safeguards customer data?
Most data is collected from cookies and online tracking, machine learning algorithms, interactions with the internet and social media, and information from smart devices. To maintain customer trust, and adhere to the law, here’s what they should be doing.
Comply with Data Protection laws – only use the information you have fairly, lawfully and transparently, for specific purposes. Use it in such a way that’s relevant and necessary. Make sure it’s accurate, and kept for no longer than necessary. Handle it securely, protect it from unauthorised or illegal processing, limit access to it and guard against loss or damage
Be transparent – be upfront about whether you’re using AI in customer interactions, and ensure that customers are aware what information you collect, how you collect it and how it’s used. An organisation’s data retention policies should outline what type of information it holds, and how long it can be held for to limit the amount of personalised data that is held and reduce the risks of storing it.
Draw up best practices – these should include data governance and security tools, an Appropriate AI Use policy, using only non-sensitive data and anonymising sensitive data, robust training on privacy and data protection, enhanced security, establishing strict data use policies, reducing the time data is held, and ensuring compliance with current regulations such as copyright and Intellectual Property laws.
AI-powered personalisation can provide powerful insights and provide customers with a first class experience of your organisation, but in order to maintain trust and safeguard your customers’ data, companies must ensure that the process is both respectful and transparent, and never compromises their privacy
For expert advice on any of the topics discussed in this blog, contact Brighter Consultancy.