By Joey Ricard - January 27, 2023
Digital trust has never been this much important as it is now!
Thanks to the digital transformation over the past few years and the advancements in connectivity, new possibilities for better living and exponential economic growth have paved the path for a better future.
But while we are advancing digitally, the attacks on businesses and consumer data are increasing, making companies demand digital trust to ensure their digital footprint is secure.
As per reports, while 81% of patients lose trust in a service provider after a data breach, 25% stop interacting with them.
So you see, irrespective of the industry you are in, digital trust is vital for protecting your, your client, and your consumer’s data and information from fraud and safeguarding the reputation and revenue of your stakeholders.
And that is why we are here today with our detailed research on Digital Trust, the latest way of securing customer interactions and digital footprints of businesses!
You will find different definitions for digital trust on the internet. As per ISACA, digital trust refers to the confidence in the integrity of interactions, transactions, and relationships among consumers and providers within an associated digital ecosystem.
The widely trusted digital signature is one of the many examples of it building used to establish trust in electronic transactions, such as e-commerce, online banking, and other types of digital communications. An identrust digital signature is a type of electronic signature that uses a specific algorithm to verify the authenticity and integrity of a digital document or message.
As per McKinsey, it is an organization’s confidence to protect consumer data, offer reliable AI-powered services and products, ensure effective cybersecurity and provide transparency around data usage.
However, Forbes has explained what digital trust is or means to an organization in the simplest way possible.
As per Forbes, it is about confidence. And the term confidence here denotes the trust people have for the organizations or companies they are interacting with online being genuine or not fake and operating as they should.
It has never been this important what your consumers think about you as a company as it is now.
No, business relationships are no longer solely focused on the exchange of services or goods for money. For today’s consumers, the belief that their information is safe with the company they are doing business with matters very much.
It takes only a couple of clicks to carry out a task today, be it making a bank transaction or booking an appointment with the doctor. And numerous companies on the web today offer the same service or similar products. So if you want your consumers to choose you, you must win their trust.
And it helps establish and maintain the confidence of your customers, partners, and stakeholders in your organization’s ability to protect sensitive information and maintain secure systems. So, it does make sense why it is gaining momentum.
Without digital trust, an organization may struggle to attract and retain customers, build and maintain successful partnerships, and protect its reputation. Additionally, not paying attention to it can lead to increased cybersecurity risks, such as data breaches and other cyber attacks, which can result in significant financial losses and damage the organization’s reputation.
From enhancing global tracking or shipping to building smart homes, or connected devices for healthcare, all these critical approaches require it to keep the services up and running and maintain confidence in connected systems.
Do not opt for building digital trust because it is in trend or more and more organizations are taking initiatives to achieve it. Know and understand the real importance of this and what it means for your organization or business to embrace the idea and give your best to achieve it.
As per studies, the higher the level, the more positive a reputation a company earns. So you see, digital trust helps brands and businesses build a positive reputation.
As per one study by McKinsey, 53% of consumers use digital services or make online purchases from companies with a reputation for protecting their customer data. In that same study, 85% of respondents agreed that knowing a company’s data privacy policies is very important to them before making a purchase.
Remember, most users today prefer buying from a company with a reputation for protecting its customers’ data, implementing strong security measures, and providing transparent privacy policies. Since establishing a positive reputation ensures a bigger consumer base for your brand, you must create an atmosphere to achieve this to boost your business opportunities.
Digital trust is of great significance because consumers value it the most today. And out of the many things it does, it assures reduced data privacy breaches and cybersecurity issues. Studies show that consumers doing business with leaders have reported fewer cybersecurity incidents or privacy breaches.
A business that knows the value of it takes the necessary steps to reduce the likelihood of malicious activity or attacks on its system and establish trust with its consumers.
Remember, consumers are likely to take their business elsewhere if the company they trust cannot save them from data or privacy breaches. Ensuring cybersecurity involves establishing a relationship of trust between consumers and the technology. And achieving digital trust assures your consumers that their data is secure with you and that the technology you use is safe.
Additionally, digital trust can help organizations detect and prevent unauthorized access to their system and data and provide a secure platform for communications and transactions.
Customer loyalty is when customers do repeat business with a company. And it comes from trust. When customers trust you, then it breeds loyalty.
Studies show that digital trust plays a crucial role in building and boosting customer loyalty. When customers have faith in a company’s commitment to security and customer service, they are to stay loyal and continue to engage with the company.
A business that values and implements digital trust is more likely to have a strong relationship with its existing customers and continue to acquire new ones. So yes, digital trust is essential to boost customer loyalty, as it helps to build a strong relationship between a company and its customers.
To make informed decisions, companies need customer data, loads of it. And consumers these days tend to share their data only with those companies that take the necessary measures to ensure digital trust.
When a company builds digital trust, it shows that it has the necessary cybersecurity and data privacy measures required to ensure data integrity and quality by preventing any loss or alteration of the data. Digital trust provides an extra layer of security for companies as it ensures data is accessed by authorized personnel and is not vulnerable to malicious attacks.
As a digital trust leader, a company boasts lowered data retention risks. So naturally, consumers are more likely to share data with such companies, which lets them access trustable data and use it for informed decision-making as per the present or anticipated concerns.
In short, digital trust helps companies make more informed decisions by providing access to reliable, accurate, and up-to-date data relevant to their business operations.
Building trust with customers and partners can help create an environment where they are more likely to share feedback and ideas that can lead to faster innovation.
Plus, a strong reputation for digital trust can help to attract and retain top talent, which can help to drive innovation by bringing in new and diverse perspectives. Organizations prioritizing digital trust are more likely to invest in the latest technologies and best practices, which can help to create a more agile and innovative culture.
Digital trust allows organizations to develop trust among customers and partners, which leads to more data sharing, which in turn helps to foster new ideas, products, and services. It also enables organizations to enter new markets, partnerships, and business models, which can help to drive innovation by creating new growth opportunities.
Even when it comes to establishing a more collaborative and open culture, which can help to facilitate faster innovation by encouraging teamwork and knowledge sharing, digital trust is crucial.
In short, Digital Trust can help organizations to foster faster innovation by creating a culture of trust and collaboration, attracting top talent, investing in the latest technologies, and expanding into new markets and partnerships.
Though there is no shortcut to building digital trust, you can certainly follow some practices to ensure enhanced security, smart innovations, and customer loyalty for your company. These practices that can help you build digital trust over time are:
Companies often face obstacles when trying to implement these practices. Some common obstacles are insufficient budget, lack of technological resources, and not-enough manpower or proper leadership. In such cases, it is best to outsource to a reliable development company that can deliver you professional services and high-quality products developed using the best security measures!
Remember, data privacy and cyber security are the foundation of establishing and increasing digital trust. Hence, you must have cybersecurity and data privacy policies that meet your organizational goals and build an organization-wide strategy to respond to the evolving technological landscape and market.
In this age of rapid digital transformation, digital trust is crucial to a company’s success and building solid customer relationships.
As users, we are less likely to trust a business if our data gets stolen during internal distribution or due to a data breach. According to a survey, 40% of consumers tend to withdraw business with a company if they learn their data is not protected. Last year, nearly 10% of consumers stopped working with companies post a data breach, even though their data was not affected. Another survey shows that 70% of consumers believe the companies they purchase protect their data.
So you see why companies need to establish a strong foundation of digital trust ASAP, especially when gaining consumer trust is crucial to stay in business and succeed!
At Klizo Solutions, we offer intelligent tech solutions, the finest example of digital trust building, to help your company ensure fraud prevention, smart authentication, and other security measures crucial for fostering digital trust.
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Joey Ricard
Klizo Solutions was founded by Joseph Ricard, a serial entrepreneur from America who has spent over ten years working in India, developing innovative tech solutions, building good teams, and admirable processes. And today, he has a team of over 50 super-talented people with him and various high-level technologies developed in multiple frameworks to his credit.
