Customer Experience and Privacy

Customer Experience

Customer Experience and Privacy

Customer Experience drives profit or cost

Customer Experience drives profit or cost

Take a position:

  1. Customer experience drives revenue (increase revenue and reduce cost) or
  2. Customers experience only increase the cost

Fulfill customer experience will increase revenue growth and reduce costs in the long run (cost efficiency). Increasing customer experience will acquire greater costs at the beginning because the company must build a system that focuses on increasing the impression on the customer journey by improving people, process, and technology infrastructure to do so.
However, these investment expenditures will have a positive effect on revenue growth because it increases customer engagement such as customer loyalty either filters out profitable customers and the cost of serving customers will be smaller than not implementing a customer journey. [1]

Educated Customer

Customers are better educated and better informed to verify what company claims and know how to seek other best alternatives in terms of purchasing a product. Consumers need perceived monetary value that is greater than the cost incurred to get an item. the negative effect on customer satisfaction from failing to meet expectations is stronger than the positive effects of exceeding expectations of the customer. It indicated that If the company failed to deliver what the brand value offered and what customer expected would result in a higher loss whether it lost customer loyalty, spread a bad image, and increase the probability of consumers to choose alternative products from competitors. This will certainly reduce revenue growth. Someone will convey a negative customer experience to people who are far more than someone who tends to convey a positive customer experience from a brand. [2]

Making investments that focus on customer experience will drive revenue growth to increase ROI through improving customer lifetime value, reducing the cost of acquisition and becoming a competitive advantage for brands. This can be achieved through customer-centricity with the customer service center as a key in the field. By improving customer contact center, which was originally the company’s cost center, will play an important role in increasing customer lifetime value and becoming a growth driver by providing delightful service that starts from purchase, fulfillment, ongoing support, and reorders. Personalized treatments that deliver to customers will increase customer loyalty and generate the maximum return on their efforts. It will attract revenue growth because according to research loyal customers are five times more likely to purchase again and four times more likely to refer to a friend to the company. [3]

Read : Customer Lifetime Value – Spotify

Online vs. Offline Privacy?

Take a position:

  1. Privacy is a bigger issue in the online world than in the offline world or
  2. Consumers receive more benefit than risk from marketers knowing their
    personal information.

Privacy on the online world stiil a big issue than offline transaction. Nowadays many companies use big data that collect from online customer data to enhance their target market and considering their strategy business. Companies are using customer information to differentiate, customize, personalize and dispatch to design a precision marketing strategy and to build strong long-term relationships with the customer. Managing detailed information about the individual customer and customer touchpoints to maximize loyalty through Customer relationship management.[4]

It’s good for company goals but not sure about customer privacy. Data customer is a big issue nowadays because in big data era every data customer could be big advantages for business purpose because the company can make data algorithm to design a marketing strategy and got market preciously. However, the customer got the advantage because what they need will more easy to fulfill due to the recommended product that the company offers through customer relationship channels (membership), similar purchase history even precious advertising based on online data history.

Customer Privacy and Big data

Companies can use big data especially customer privation data to modified
information related to their marketing strategy. But is it a good choice? I think it is a big issue because of data information related to the privacy of the customer itself. The information collected from various data on the internet usage of each individual that may not be known and even unaware that the data has been stored. Privacy is the condition that no one will disturb the people and when if privacy issue arises it can affect the relationship building between company and customer.

Companies should protect their customer so the trust in their brand still maintained and it’s important for companies and customer relations. I think business ethics, clear agreement, and awareness of the purpose of data collection is a key role that customer privacy data could not misuse in business and will not affect customer relationships. The other important thing is government regulation and implementation to prevent misused customer data privacy such a transaction data theft (credit/debit card data), data information selling, and other data criminalization.


[1] Best of both worlds: Customer experience for more revenues and lower costs. Harald Fanderl and Jesko Perrey, 2014.

[2] Customer Experience Is The Future Of Marketing. Daniel Newman 2015.

[3] Customer experience matter. 2015. Temkins Group.

[4] Marketing Management, Kotler, Keller 2015.

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