Jackie Shoback is the managing director of 1414 Ventures, a venture capital fund focused on digital identity. In today’s data-driven economy, leveraging precise data insights is crucial for growth, profitability, and brand equity. Transforming data into a capital asset can be the difference between a stagnant organization and a thriving one.
AI tools offer a more efficient way to build brand equity and customer loyalty; however, CEOs and executive teams must balance leveraging data assets with respecting privacy, trust, transparency, and equality. Brand equity is determined by consumer perception and experiences with a brand. Positive brand equity develops as a result of customer experiences, driving customer loyalty and lifetime value.
Improvements in customer experiences, operational efficiency, and reduced friction are possible outcomes of analyzing customers’ behaviors and transactions. However, the confidentiality of data can put relationships at risk. Implementing a data capital strategy requires careful consideration of business objectives, data attributes, consent procurement, data lineage, privacy protection, and tools for detecting data leakage.
Data capital is recorded information necessary to produce goods or services, with long-term value akin to physical assets like buildings and equipment. Data can help create better services, improve operations, and drive value throughout organizations. Trust and brand equity built by a business allow for gathering more customer information and better meeting needs and expectations.
Businesses must balance the velocity of data capital to ensure privacy preservation and security while operationalizing data insights. Tips for achieving this balance include creating a data governance steering group, involving legal and compliance experts, assessing existing processes for vulnerabilities, and analyzing output from AI tools for privacy leakage. By striking the right balance between consuming data capital and building brand equity, businesses can prioritize their customers’ best interests and drive success.
