A Founder’s #1 Job (Don’t Even Think about Leveraging Customer Data Until You Do This)

Businesses today have an incredible asset at their fingertips — customer data. But as UnboundID CEO Steve Shoaff explains below, in order to properly leverage it founders need to do one thing first. 

Many businesses today say that customers are the center of their universe and the key to their business value. Yet, not all companies actually back those statements up by developing their IT systems in ways that put their customers’ interests first, says UnboundID founder and CEO Steve Shoaff.

In fact, in desperate attempts to extract as much context-driven data as possible, some companies blatantly ignore the important need to protect and respect their customers’ privacy. That’s a big mistake in a world where customers are increasingly empowered and leery about how their data is used, Shoaff says.
In the interview below, Shoaff explains why leveraging customer data is crucial for serving them more effectively, but in order to do so the first thing you have to do is earn their trust.

A Founder’s #1 Job: Earning Customer Trust

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“People are really mindful today about what [companies] are doing with data about them,” Shoaff warns. “[They wonder], ‘Is it mine, or does it belong to Google or Facebook?'”

Key Takeaways

Data Can Be Incredibly Powerful — If Your Customers Trust You to Use it Properly [0:25]
Through real-time data, businesses have the opportunity to provide customers with the kinds of extremely relevant, context-driven experiences that drive customer engagement and create brand loyalty.
But with that power also comes great responsibility, Shoaff says. 
“Data is really valuable (because it can help you) deliver better products that are more engaging and more delightful,” Shoaff explains. “But it also has  implications around trust, loyalty, and brand damage if you’re perceived as misusing, not respecting, or not protecting data about your customers.”
Read more: The Power of Being Customer Focused
A Founder’s #1 Job: Earn the Customer’s Trust [1:30]
It’s nice to say that your business is customer-centric, but Shoaff says customers won’t buy it unless you actually prove that they’re your top priority.
“[Companies] need to deliver a delightful and engaging experience and more effectively leverage customer data, but do so in a way that is mindful and respectful of the end users,” Shoaff explains. “It’s their data and you’re simply a steward of that data.”
Ultimately, if you approach customer data with that mindset, Shoaff says you’ll find it easier to leverage their information in ways that yield highly engaging, context-driven experiences, and happier, more successful long-term customers.
Defining Customer Centricity: Listen to AtTask CTO Ted Hoy describe the steps his company has taken to truly become customer centric.

Who is the Most Customer-Centric Company in Tech?

In the spirit of March Madness, OpenView selected 16 of today’s top tech companies with a reputation for stellar customer service and a passion for customer success. Competing in four rounds of head-to-head match-ups — each determined by popular vote — the winner standing alone at the end will be crowned the Most Customer-Centric Company in Tech. Cast your vote now!

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3 Harsh Truths About Building Your Founding Team Building a cohesive founding team is never as easy as it seems. In this week’s installment of “Founder’s Corner,” Instructure CEO Josh Coates shares three hard truths founders need to accept if they’re focused on putting together the right group for the long haul. Read more.

Photo by: Marie-Aude Sardari