CX Insights
Data breaches cost consumers $20B, and brands lose out from lost trust
Over a decade, four data breaches from data brokers in the United States cost consumers an estimated $20 billion in damages - but the real monetary cost could be much higher, and there are intangible costs to brands as well. When data breaches happen and consumers experience identity theft or fraud, they turn to the CX teams at banks, retailers, healthcare providers, and digital services, even if these organizations didn’t directly cause the harm.
Trust is growing even more important. According to a Cisco Consumer Privacy Survey, more than 75% of consumers say they won't purchase from a brand they don't trust with their data. Plus, once a consumer loses trust, fewer than 40% of consumers will forgive a company even after they remedy their data issues.
Security is critical for all brands to protect their customers’ data. However, some of the steps that brands take to mitigate risks of data loss from their customers lead to a poor experience: long verification steps, frozen accounts and repeated identity. It’s a balance to secure your customers’ data and trust with ease of use.
Economists: cheaper prices unlikely even after tariff ruling
Economists say that due to price stickiness, prices are unlikely to lower after the recent Supreme court ruling tariffs unconstitutional. Reducing or removing tariffs could bring down costs for suppliers, but retailers may be hesitant to lower prices to see if consumers will continue to pay.
But consumers are reaching price sensitivity with years of inflation, and this tariff ruling is big news. Consumers may expect prices to drop.
Some brands are publicly rolling back prices, everything from PepsiCo rolling back snack prices to cafe chain Pret A Manger campaigning on “2016 prices” in NYC.
CX leaders at brands impacted by tariffs: be proactive about pricing, be prepared to answer customer questions, and pay attention to customer feedback on the issue.
Southwest refines boarding based on customer feedback
Southwest has begun rolling out assigned seating and says feedback is good, with customers sharing it’s “smoother, calmer, and more intuitive.” It’s making additional changes based on feedback, such as making sure customers who pay for extra legroom seats can get overhead bin space.
Southwest removed its free checked bags and in turn is upgrading its fleet of planes to accommodate all the carry-on bags people are now bringing to avoid bag charges. I wonder how long that will take to recoup the ROI on that decision.
The real test: will Southwest attract new customers that previously did not care for its open seating policy?
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