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Why Customer-facing Companies Need To Handle Data Cautiously in 2021 And How Can They Do It?

The rapidly changing business and digital landscape require all businesses to keep up with the times. The digitized business environment, big data handling, high-quality goods, and services, all aim to offer personalized customer experiences and ultimately expand the consumer base. It will not be wrong to say that businesses thrive off data, data is as precious as oil in the digital era, more so for customer-facing businesses.

With minimized physical contact and a revolutionized digital lifestyle of the customers in the post-pandemic world, customer-facing firms are feeling the pressure of performing better in a dramatically changed world. Businessmen are aware that customer experience matters, as always, and what lies at the core of great consumer experience is ‘data’. It cannot be denied that selection, segregation, and availability of required data at the right time can accentuate customer experience.

Customer service is a crucial function of almost all customer-facing companies, it is critical to their growth and success; And while presentation and brand management is essential the undeniable role of data in enhanced consumer experience cannot be denied. Real-time data can benefit your firm in unimaginable ways, while data security is another area where your company cannot lag behind. Detailed and desired responses can be generated with good data management which can be key to your business’s success in 2021.

Customers value their data and trust your company with that, which is something every good businessman should consciously acknowledge. While handling data cautiously will not just save your brand from nasty breaches that tarnish your reputation in the market and in front of your customers, it will also enable you to put this data to better use for your firm’s benefit. As a forward-thinking organization handling, first-party data through a viable process of acquiring, organizing, and effectively using this data should be an utmost priority.

While there are tons of ways in which data can be handled and put to great use for your company’s benefit this year, some of them are completely unmissable and if you have not thought about incorporating those, now is a good time.

So here are the four pillars of handling data cautiously in 2021:

Take security seriously

As a customer-facing enterprise, you will have to gather their personal data, from their phone numbers and addresses to details about their company financials. Thus, it becomes imperative to have a plan to keep that information safe. Reports have suggested that small and medium-sized businesses suffer an average loss of $120,000 per data breach while the average cost of a data breach, can be anywhere from $1.25 million to $8.19 million.

Thus, a security program or service that constantly reviews, upgrades, refines, and improves your company’s data security practices needs to be in place. Regardless of what sort of information you are gathering from your clients, they need to realize that their data is protected.

Basic advances like putting resources into a CRM, investing in a backup system, and investing in customer-data training for your employees can go a long way. Putting resources into the security of your company and consumer data is an interest in your organization’s future, which is cash well-spent.

Your customer’s data privacy is your priority

Data privacy regulations worldwide now dictate the various ways in which companies can and cannot use their customers’ data. Most businesses, especially customer-facing firms face the taxing work of meeting compliance standards with an array of rules and regulations. Thus, getting effective compliance management software should be your first step towards efficient data handling. It can help you easily swim through the excruciating details of compliance in your business and area and save you from the potential penalties for non-compliance. Compliance can be a difficult road, but it is not a path you can skip.

Data Purging may not be a bad idea

Ensure that you are gathering information that is really helpful to your organization. If you have not already then this should be the year when you approve and update data. This will lessen the burden on your systems and help with effective decision making by eliminating unwanted data.

Data purging improves the estimation of your present information. You may mechanize information approval via suitable instruments or services. This data cleansing can be an information component of your quality control and effective overall data management.

Backing up data is essential

While losing some data may seem like a manageable situation, it can become a huge hurdle in your company’s success. Data backup and recovery plans are fundamental for every business. The potential of stored data cannot be fathomed, and you ought to have a very protected reinforcement of all your client information in the event that there is an issue with your system. It not only keeps client information safe but also makes your business look more dependable.


While effective data handling can be an asset to your organization, messing up on certain aspects of data management can land your company in grave trouble. The official year of the digital boom, 2021 is expected to be a big year for all companies, especially customer-facing firms considering the social distancing norms and changing digital landscape. Thus, it’s better to play hard and play safe.