Jackie Shoback is a managing director at 1414 Ventures, a venture capital fund that focuses on digital identity in the current data-driven economy. Leveraging precise data insights derived from customer behavior, market dynamics, and business transactions is essential for fostering growth, profitability, and brand equity. Transforming data into a capital asset can be the difference between an organization that thrives and one that stagnates, according to MIT’s Technology Review.
AI tools and platforms that accelerate the growth of data promise a more efficient way to build brand equity and customer loyalty. However, there is a need to ensure that CEOs and executive teams do not overstep their bounds and break trust with their customers. Shoback emphasizes the importance of respecting privacy, trust, transparency, and equality in the usage and activation of a company’s data capital. Finding the optimal balance between leveraging data assets and enhancing brand equity as new AI tools are integrated is crucial.
Brand equity is a marketing term that describes a brand’s value, determined by consumer perception and experiences. Building brand equity and business value is essential for driving customer loyalty and lifetime value, impacting growth, profitability, and market share. Analyzing customers’ behaviors and transactions can lead to improvements in customer experiences, operational efficiency, and reduced friction. However, confidentiality of data is crucial to maintain customer relationships.
Data capital, like physical assets, can have long-term value and drive improvements in services, operations, and value throughout an organization. The virtuous cycle between data capital and brand equity is highlighted, where trust and brand equity lead to better customer understanding and delivery. Balancing the velocity of data capital is essential as businesses operationalize data insights into their business models. Tips include creating a data governance steering group, assessing and auditing processes for gaps in data privacy and security, and analyzing output from AI tools for privacy leakage.
More personalized insights can delight customers and exceed their expectations, but collecting data with care and trust is crucial. Striking the right balance between consuming data capital and building brand equity helps keep customers’ best interests at the center of business strategy. Forbes Business Council is a growth and networking organization for business owners and leaders, providing opportunities for qualification and connection within the industry.
