There does not appear to be any relationship between risk management automation and customer engagement. In some of the popular games, it is possible to extract the currency by subduing the enemies. However, there’s functionality allowing you, as the gamer, to earn the same money by performing small tasks such as washing the vehicle.
Risk management automation is like the currency of customer engagement. It is the concealed gem in the supposedly ordinary tasks.
What Role the Word of Mouth Plays
Your clients are more valuable than the money they spend on an item. Customer’s Lifetime Value (CLV) determines both the money that your customers pay and the intangibles their business brings.
Word of mouth is among the intangibles, and it is typically a form of free advertising. Customers share the positive experiences with the business, and that has a positive impact on the overall performance. It is free marketing without ever having to spend a dime.
As such, it is critical to include word of mouth in determining CLV value, but it is not always as simple as it sounds. You see, customers have changeable values.
Some of them upsell your business, convincing an otherwise uninterested party to purchase from you, and thus, becoming a direct value, consistent with your business strategies. In the absence of such effort, you would not have made the sale. The convinced party is a direct profit.
Others will merely talk about your offerings even though the customer was going to purchase from you, anyway. The benefit here is in cost savings, as you never had to spend to reach the customer. The cost savings are a secondary value associated with the initial customer.
While both of these scenarios are essential in CLV calculation, the latter is the hidden gem.
The relationship between Reputation and Word of Mouth
If people are saying good things about your business, then it will succeed. A survey done in 2015 by Moz found that up to 67% of respondents based their purchasing decisions on online reviews.
The two primary drivers of customer engagement are social value, which includes the individual interactions between the business and customers, and the emotional value, which are feelings that your product provokes. As such, online reviews are the basis of your reputation, as they incorporate both the emotional value and the social value.
A positive review improves the social value while a negative one does the opposite.
InfoSec Compliance as the Silent Partner
The majority of people are oblivious to the technicalities associated with information security. However, comprehending such terms as WannaCry, thanks to extensive coverage of data breaches by news organizations, is easy.
People are afraid of what they don’t grasp, and that includes protecting their information systems. Such people depend on their business partners for protection, and that means they rely on you to provide the necessary InfoSec. In other words, they are counting on you to defeat the foes so that you can earn your currency – the associated benefits from customers.
The Repercussions of a Breach
Bad customer experience and the resulting negative review, shared with others is bad for your bottom line. A single negative review can impact the decision of between 40 and 80 other customers leading to loss of business, and of reputation.
Your Hidden Currency in Risk Management Automation and Customer Engagement
Risk management automation makes everything more comfortable for your business. If you are meeting all the requirements regarding security and you are SOC compliant, the customers know they can trust you. They know that their information is secure and will say good things about you, adding value to your business.
The Role of Enterprise Risk Management Automation
Compliance standards, as well as, the regulatory requirements will go up, at least in the next few years. Equifax and other similar breaches are driving businesses towards this end. That means you will not only need to determine whether you are compliant but also get compliant in the shortest time possible.
Some systems will provide a sufficient gap analysis of your current compliance controls and highlight any overlap.
Management of your software updates and security reviews as part of the compliance controls helps keep any possible breaches at bay. The importance of compliance is ensuring you are using best practices to shore up information security.
Determining the Value of Automated Compliance Tools’ Rate of Investment
It may appear difficult in highlighting time savings in the balance sheet or your firm’s bottom line. However, the automated systems come with a veiled benefit to customer engagement strategy. When you have an efficient automated tool, your IT and CISO spend less time monitoring the system and more time protecting you.
The result is safer systems and reduced chances of data breaches. Your customers can then trust your ability to protect their information.