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As organizations capture increasing amounts of customers’ personal data in the digital business era, there is growing concern over how this information is used and shared. For the most part, customers understand that there is a value trade involved with providing their personal information. They are okay with it as long as they receive value in return, such as fitness guidance from a health website or discounts and coupons from retailers. Yet, they still expect companies to be good stewards of their information.

Identity and preference management platforms that offer these two key capabilities can help brands use and share customer data responsibly and meet regulatory requirements.

  1. Preference management
    Organizations can improve customer experience and increase brand trust by giving consumers a way to self-manage their profiles. Customers can specify their preferences, such as the products they are interested in and how they wish companies to communicate with them, or not communicate with them, among others. Preference management capabilities can go a long way in establishing successful, loyal relationships with consumers.
  2. Policy-based data access governance
    The prevalence of data collection and sharing is causing significant concerns over privacy. We are already seeing major regulatory actions, such as the revocation of the Safe Harbor Act, in response to privacy violations. This trend is expected to continue. Identity management solutions that support fine-grained data access governance can assign unique policies to each profile rather than broad rules assigned to audience segments. It can ensure that a single profile adheres to specific regulatory or corporate policies, including regional laws, age-specific parameters and even privacy preferences.

How organizations handle customer data is becoming an increasingly important part of the customer experience equation. The brands that demonstrate they are doing all they can to protect consumer identity data and respect customer preferences will be rewarded with consumer loyalty and revenue growth.

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