• by Aaron Baar , January 8, 2016

Anyone who has ever been in a relationship knows trust is hard-earned and easily lost. It seems that many companies have a long way to go to earn the trust of their customers. 

According to new research from data information company Verint, nearly half (48%) of consumers are suspicious about how companies use their personal data. A fifth of them (20%) said they didn’t trust any business to keep their information safe. According to Dave Capuano, global vice president of integrated marketing at Verint, that disconnect is rooted in a lack of transparency and a failure to meet customer expectations. 

“There’s definitely an issue of trust led by a lack of meeting [customer] expectations,” Capuano tells Marketing Daily. “[The] disconnect is between how the organization perceives itself and how it’s seen by consumers. Every business, to be successful, needs to view itself through the eyes of its consumers.”

However, there are certain sectors that fare better than others when it comes to trust, he says. While fewer than half (43%) of consumers trust their banks to keep data safe, that’s still far greater than the 3% of consumers who trust utility companies and the 2% who trust online and in-store retailers. The trust is higher for banks because consumers understand the tradeoff of giving up information (such as obtaining a mortgage or credit card), but are but are less clear about why a retailer might need it. 

“Understanding that balance of trust, and using [information] for things like personalization, you have to be careful,” Capuano says. “You have to leverage what you have at your disposal, but you can’t be 'creepy' about it.”

To accomplish that, companies need to make clear how they’re going to use customer information, and if possible, give them choices about how much they’re willing to share in exchange for a better experience. “There’s certain customers that are fine with the data you collect, and others that are more skeptical,” he says. “Don’t force all your customers down a particular path.”