For the connected customer, the internet is a daily necessity that delivers convenience, choice and often a competitive price. Of course, the data such activity generates can be invaluable to the organizations collecting it, but it is also of value to cyber criminals.
The Identity Theft Resource Center (ITRC) recorded 3,205 data compromises in the US in 2023, which affected 353 million individuals. Since 2021, the number of data incidents has increased 71 percent.
Data breaches target customer and company data, including passwords and payment details, but they are not the only threat facing customers: identity theft, fake websites, unencrypted data and unsecured WiFi also pose risks.
When CX Network conducted its research into the Global State of CX in early 2024, security was top of mind for practitioners. When we asked which three customer behavior trends influenced their CX planning the most, the demand for data/communications security was the fifth most selected answer.
How different customer personas view data security
Ankesh Agarwal, director of group customer experience for UAE-based lifestyle group Majid AL Futtaim, says that when it comes to security different customer personas have different perspectives and levels of awareness. “Data security is paramount to customers with different personas processing this topic in their own unique ways,” he says.
Looking at the customer landscape, he says the different personas can be defined as:
The uninitiated: Mostly Gen X, who first experienced the internet very late in life and are susceptible to wrongdoing by fraudsters. Their usage is limited, mostly to entertainment and banking essentials, but they are wary of sharing their personal details unless a site ‘looks’ trusted.
The optimists: Mostly Gen X and a few Millennials, these consumers will share their personal details and trust most sources, but they mostly think that everything on the internet is traceable, so why hide.
The pragmatics: Mostly Gen Z, late Millennials and now Gen Alpha, who were born with the internet and have wide and rampant usage habits. They are willing to share their personal data, but they want personalized attention in return, or they will go elsewhere.
The vigilantes: These cut across generations and are excessively obsessive about their data privacy, to the extent of searching out sophisticated data protection methods. They check security certificates, review their accounts regularly and routinely change passwords.
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Can stronger data security improve the customer experience?
The financial cost of a data breach is high: $4.45 million on average per incident, according to IBM’s Cost of a Data Breach Report 2023.
However, the cost is more than financial. Data breaches erode customer trust and can even see loyal customers switch to a competitor. In 2020, FTI Consulting published research that found companies expect a nine percent decline in global annual revenues following a “data privacy crisis”. High profile data incidents can also increase customer acquisition costs.
No organization is immune. Year to date, some of the largest data breach incidents have involved Ticketmaster, AT&T and VF Corp, which owns Timberland, Vans, JanSport, The North Face and Dickies. In January, security researchers claimed to have found stolen records for 26 billion users from Twitter, LinkedIn, Adobe and Myspace.
While customers are often advised to update their passwords after such an incident, on occasion, they get angry. When T-Mobile suffered a major breach in 2021 its customers filed a class action, which in early 2024 resulted in a settlement of US$350m.
As a result, every step of a customer’s journey must be secure, from browsing and account set up to purchase, payment detail storage and communication. However, as much as customers want their data, payments and communications to be secure, they also want a friction free experience.
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Enhancing security online without adding friction
CX and security are both core to business and the responsibility for maintaining strong standards across both falls to everybody in the organization. It is the CX practitioner, however, who must ensure the latest security measures are not intrusive or cumbersome.
Senior CX executive and retail expert Dominik Olejko says customer education is key. “Tell your customers what the security methods are and be transparent on your security policy. A customer who is well educated on the benefits of stronger security will accept stronger security.”
He adds: “In the payments area a seamless experience means fewer clicks, and you need to deliver that without compromising security. But it is very easy to cross the line and it is always a tradeoff between convenience and security that practitioners must regularly assess.”
Olejko advises practitioners embark on their own customer journey on their organization’s website on a monthly basis, “to get a sense of what that journey looks like”.
“There are no insights or heat maps of online activity that can inform you better than simply going through the journey yourself. I regularly do it to see what the journey is like without reading the pain points on the dashboards. Just put yourself in the customer's shoes – it's so simple,” he adds.
Agarwal offers seven tips for practitioners looking to strike a balance between security and convenience:
- Create trust in the brand: This works for everyone and if you have an impeccable reputation in the market, people will be happy to spend the extra time.
- Spread awareness: Run engaging campaigns for people who are less aware, this will help them understand the importance of the extra effort.
- Make it easy, easy, easy: It should be convenient for customers to record their choices, read through data privacy policies and share their data.
- Be transparent: Whenever you collect data tell your customers very clearly how data is stored and utilized.
- Meet your promise: Respect customers’ choices and give them a way out if they want, treating opt-outs carefully.
- Use the data to give back: Give customers personally curated content to make their life easier. Use their data for better service, VIP perks and preferential treatment.
- Be on the right side of the law: Especially when working across multiple geographies.
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How to secure the contact center
Websites and apps are not the only channels that need to be secure. The contact center handles huge volumes of customer data, including payment information and call transcripts. In some sectors, such as healthcare, the contact center routinely handles highly sensitive personal data.
Contact center security is critical in protecting customer and company data. “Virtual working, especially post-Covid, and increasingly sophisticated and inventive hackers and conmen, keeps us on our toes,” says Hazvinei Ashley Matsangaise, who heads contact center operations for Econet Wireless Zimbabwe and manages a 400-strong team of agents. “The saying ‘prevention is better than cure’ is equally applicable when it comes to contact center security.”
She advises contact center leaders minimize data availability and access through a diligently mapped segregation of duties. “The more data that you store, the more individuals with access, hence an organization increases its risk of potential data breaches. This also helps with aligning system access rights to an employee’s role, thereby limiting potential data breaches.”
Physical security is also important. “The last thing you want is unwanted guests in your contact center where important business transactions and customer conversations happen.”
Online security is a fast-moving area that requires a diligent and dedicated approach. However, there are simple steps CX practitioners can take to ensure they understand their customers’ security needs, and that they are meeting them.
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