Nearly every company is investing in customer experience as a key differentiator in digital business, but there is a clear difference between those that are succeeding and those that are falling behind.
Among companies that are thriving despite digital transformation, 78% credit key technology upgrades for their success.
Over the last decade or so, customer experience management analytics (CXA) solutions have emerged as an essential technology for companies looking to position customer experience as a differentiator. However, data privacy concerns can’t get lost in the midst of CX information collectiont.
Some CXA features (for example, customer service replay, customer dispute resolution, and fraud analysis) require you to capture personal customer data. Because of this, you have to stay up to speed with the main data privacy regulations.
4 Data Privacy Regulations Customer Experience Managers Must Keep in Mind As every industry goes digital, balancing data privacy and CX innovation will become increasingly challenging. While some industries are more heavily regulated than others, the reality is that there aren’t any general federal laws regarding the collection and use of customer data.
Instead, there are a number of lower level state/federal regulations and industry guidelines that companies must adhere to. Here are some of the biggest privacy laws CX managers must keep in mind when implementing CXA solutions:
The Federal Trade Commission Act: This regulation can be applied to offline and online privacy scenarios, prohibiting companies from “unfair or deceptive practices.” The FTC has been known to enforce this regulation when companies fail to comply with privacy policies and unauthorized disclosure of customer data.
Financial Services Modernization Act: The financial services industry is one of the most heavily regulated globally. This regulation creates stipulations for the collection, use and disclosure of customer financial information. Banks, securities companies, insurance organizations and more must comply with these guidelines. In many cases, this act requires financial institutions to disclose their privacy practices and give customers an opportunity to opt out.
tFair Credit Reporting Act: For consumer reporting agencies, any communications related to creditworthiness, credit history, credit capacity, character and general reputation must be properly protected according to the guidelines of this legislation.
Electronic Communications Privacy Act/Computer Fraud and Abuse Act: Data breaches are hitting the news at an alarming rate and regulators are trying to update older laws to keep pace. These two acts regulate the interception of electronic communications and computer tampering, forcing CX managers to make sure the data they collect is behind proper firewalls. These are just 4 of the more prominent data privacy regulations—but they only apply to businesses in the United States. When you start dealing with international data transfers and global businesses, regulations become even more complicated. The main takeaway here is that there’s no way a single CX manager can keep track of these data privacy regulations alone. As you implement your CXA solution, you have to make sure the technology helps you maintain regulation compliance while also improving customer experiences. Key Considerations for CXA Solutions with Regards to Data Privacy When choosing your CXA solution, one of the most important questions for vendors should be whether or not they will ensure data protection regardless of deployment methods. To dig a little deeper, make sure to weigh the following key considerations: What approach does the CXA solution take to capturing PII both with SaaS and installed software? How can the CXA solution handle PII if you move to a SaaS-based approach? Does the vendor offer deployment options that enable PII capturing and storage while taking advantage of the increased accuracy of a client-side approach? How does the CXA solution help ensure compliance with all relevant data privacy regulations? With UserReplay, we’ve taken a unique approach to CXA deployment that finds a balance between CX insight and data privacy. If you want to learn more about this approach and the security features of the solution, click here and watch a demo of UserReplay in action.