Despite having less trust in brands to use their data ethically, millennials are more willing to provide companies with information in exchange for convenience and personalized experiences, according to a recent Gartner survey. This is the privacy paradox — the apparent inconsistency between customer concerns about privacy and actual online behavior.
“ Customers expect to be recognized and want their experiences personalized”
Companies often operate under the misconception that personalization and privacy are conflicting efforts, not symbiotic opportunities. The privacy paradox sets up potential conflict between data and analytics leaders, customer experience (CX) leaders, marketing leaders, security and risk leaders, and other business and IT stakeholders. It undermines CX initiatives, frustrates customers and limits new business value.
“Organizations are losing their best chances to create great customer experiences due to needlessly risk-averse privacy ideas that limit the use of personal data,” says Penny Gillespie, VP Analyst, Gartner. “The key is to bring value to customers and keep data use in context.”