Security, compliance, and privacy considerations for your CX strategy

In 2017, The Economist claimed that data has replaced oil as the world's most valuable resource.[i] I agree that data, specifically customer data, is extremely valuable, but I view it as more of a treasure chest of precious gems that need special care and top-notch security.

We've all experienced how our own data can be used to personalize offers and recommendations. In fact, most of us expect and value these tailored experiences. According to one study, 72% of consumers say they only engage with marketing content that is tailored to their interests.[ii] Another study revealed that 66% of customers expect businesses to understand their needs and expectations[iii], which is only possible if businesses have a good amount of information about those customers in the first place.

However, consumers are sending mixed signals to businesses. Though they want a data-driven customer experience, they also worry that companies collect too much of their personal information. According to an article by Marketing Dive, "71% of U.S. consumers worry about how brands collect and use their personal data and 34% don't trust tech companies with their digital privacy.[iv]"

Adding to the complexity of the situation are consumer data privacy laws such as General Data Protection Regulation (GDPR) that govern how organizations collect, store, and use customer data. Plus, the new reality of remote workforces creates more potential data risks to address and mitigate.

To paraphrase a well-known quote: With great amounts of data comes great responsibility. Contact centers in particular need to find that balance between leveraging customer data to provide great CX and making people feel like their privacy has been violated.

Using the right contact center software and partnering with a knowledgeable technology provider helps organizations find that balance, as well as safeguard their customer data with best-in-class contact center security.

Using and securing customer data leads to a successful CX strategy

I enjoy personalized experiences when they're well-executed. For example, I've found plenty of new movies to watch thanks to Netflix's recommendations, and one of my favorite retailers does a good job sending me relevant promotional emails based on my past purchases.

As personalization becomes the norm in everyday consumerism, companies try to track and subsequently anticipate customer needs. Below are some tailored services many customers encounter regularly that do just that:

• Daily news apps
• Personalized ads online
• Pet food/toy box subscriptions
• Smartwatch tracking physical activity
• Prescription and medicine apps tracking medication

These tailored experiences are based on what a business knows about you (or your dog).

In turn, you might be inclined to buy more products from and be more loyal to companies that know you well.

How does your business personalize customer service experiences?

Tailored interactions aren't just confined to purchase journeys. They also play a prominent role in delivering satisfying support interactions.

Contact centers collect vast amounts of data that provide insights into what customers think and feel, and what types of barriers they encounter while doing business with a company. The right solutions can even capture what customers searched for and viewed prior to contacting customer service. When contact center systems are integrated with CRM applications, the combination provides a rich view of individual customers, including sentiment and purchase and interaction history.

A CX strategy best practice is to include how to sensitively use this treasure trove of customer information to provide the personalized customer experiences people expect and value. And the plans should include leveraging customer data in both agent-assisted and self-service channels.

Does your business leverage customer data to provide seamless omnichannel experiences?

NICE CXone research shows that 96% of consumers expect businesses to make it easy for them to switch channels without the need to repeat information[v]—another expectation that can only be fulfilled by using customer data.

Digital channels have forever changed the nature of customer resolution journeys. With so many support channel options, customers often use a blend of them during a single transaction. A customer may begin their journey by viewing web content, then interacting with a chatbot, and finally switching to phone support.

Customers become frustrated when they’re required to repeat themselves after switching channels or agents. It can be a major source of customer frustration that is easily solved by data and omnichannel capabilities. Omnichannel experiences are seamless because a customer's information follows them throughout their resolution journey, eliminating the need to repeat information and enabling every channel to provide a satisfying, personalized customer experience.

Ensure customer information is private with a secure, compliant, and regulation-abiding contact center platform

Strong data security and privacy practices are fundamental to building customer loyalty. Lasting relationships are built on trust, and nothing kills trust quite like a data breach or violation of privacy.

Security and privacy restrictions are getting tighter as governing bodies move to eliminate data misuse and sloppy controls. For example, to achieve GDPR compliance an organization must follow the EU-established framework for collecting and processing data of people that live in EU countries.

Asking for permission to use cookies and fully disclosing personal data practices has become so commonplace that some organizations treat those processes as their own unique experience and seek to optimize them. In fact, Forrester predicts that "CX leaders at 20% of European companies and 10% of US firms will turn their attention to privacy and consent journeys" in 2022.[vi]

There are potentially substantial benefits in taking this approach. CMS Wire sums the situation up nicely: "Brands that build privacy into their customer experience design and digital experience footprint will gain more trust, better access to data, and the ability to deliver the personalized experiences their customers expect.[vii]"

Security, compliance, and privacy are more complex in today's work from home world

The events of the last two years have accelerated the work-from-home trend. And remote work isn't just a business continuity measure—our research revealed that 70% of contact centers expect they will continue to have agents work from home after the pandemic ends.[viii]

When agents don't work in a centralized facility and on a centralized network, it adds even more complexity to data privacy and security. Contact centers now need to put policies and procedures in place for things such as:

• Device management (personal devices vs work devices)
• Connectivity (passwords and firewalls)
• Call recording
• Monitoring
• Training

Implementing the right contact center security measures will help ensure customer data is properly safeguarded and businesses remain compliant with regulations such as:

• FedRAMP
• GDPR
• PCI
• Cyber Essentials
• CPNI
• CCPA
• SOX
• HIPPA
• Section 508
• TCPA
• IRAP

Download "NICE CXone security and compliance standards" to learn more about all of these regulations and how NICE helps contact centers remain compliant with them.

Organizations that don't have strong contact center security procedures are especially vulnerable to hacking. Cybercrime is skyrocketing. Cyber-attack-related data compromises increased by 27% year-over-year in 2021.[ix] This is especially noteworthy considering that 2020 was also a record-breaking year.

Data breaches can have devastating effects on customers and businesses. Organizations that don't keep customer data secure can expect an unprecedented fallout, including:

• Diminished public and consumer trust in the company and brand
• Financial losses, repairs, fees, loss in business
• Litigation, lawsuits, legal expenses, and punitive damages

According to an IBM report, data breaches cost an average of $4.24 million per incident in 2021.[x] Hindsight is 20/20, of course, but if businesses had invested that money in high-security technology, they would still have their reputations intact and would have saved their customers from the hassle of cyber breaches and misuse of their personal data.

How to find the best contact center software when it comes to security, compliance, and privacy

The best standard for data security, compliance, and privacy is when they are baked into contact center software. Functionality such as masking sensitive information in call recordings and the ability to send a customer to an IVR when it's time to provide their credit card number will keep data safe and help businesses remain compliant. If a solution requires a third party for compliance, that's a red flag.

When organizations choose an industry-leading cloud contact center solution, such as NICE CXone, not only is data security integrated with the software, but you also gain the provider's knowledge and resources. Cloud vendors are responsible for managing and safeguarding operational and customer data, eliminating the need for their clients to hire an army of IT specialists to handle these responsibilities. And being in the cloud strengthens business continuity plans.

Additionally, contact center software providers should be very transparent about their compliance certifications. The best cloud providers are compliant with most or all rules and regulations, allowing them to serve clients in any industry. NICE CXone is particularly proud of the fact that we were the first FedRAMP cloud contact center software provider.

Security, compliance, and privacy should be a central component of every CX strategy. A strong data plan will enable businesses to leverage customer information while also keeping it safe and used appropriately.

Learn what else 2022 might have in store for contact centers

We've discussed one of several predictions Forrester made for 2022, but their insight reaches so much farther into the state of customer experience this year. Learn what else they’re forecasting in the "Forrester 2022 CX Predictions."

[i] The Economist: The world’s most valuable resource is no longer oil, but data (2017)

[ii] SmarterHQ: Privacy and Personalization: Consumers share how to win them over without crossing the line (2021)

[iii] Salesforce: What Are Customer Expectations, and How Have They Changed? (2020)

[iv] Marketing Dive: 71% of consumers worry about brands’ handling of personal data, study finds (2018)

[v] NICE CXone: 2020 Customer Experience (CX) Benchmark, Consumer Wave (2020)

[vi] Forrester: Predictions 2022: Customer Experience (2022)

[vii] CMS Wire: Accepting Privacy as a Customer Experience Issue (2019)

[viii] NICE CXone: 2020 Customer Experience (CX) Transformation Benchmark (2020)

[ix] Government Technology: Data Breach Numbers, Costs and Impacts All Rise in 2021 (2021)

[x] IBM: IBM Report: Cost of a Data Breach Hits Record High During Pandemic (2021)