Balancing personalisation and privacy for family enterprises
Balancing personalisation and privacy for family enterprises
https://kpmg.com/uk/en/insights/culture/balancing-personalisation.html
Publish Date: 2026-05-31 02:04:00
Source Domain: kpmg.com
At KPMG, we see three steps to building and maintaining trust and loyalty.
The first is getting the basics right. Secure, accurate data, clear consent and transparency about usage are no longer hygiene factors; they are prerequisites for participation. Many family businesses underestimate this because data practices have grown organically rather than by design. A family firm may feel it is acting responsibly, but unless customers understand what is being done with their data, trust can quietly erode.
The second step, a clear value exchange, is where family businesses can truly differentiate. Customers are more willing to share data when the benefit is obvious and meaningful, not just a marginal discount or poorly targeted advert. Because family enterprises, are often closer to their customers’ real needs, they are well placed to design personalisation that feels helpful rather than transactional. The lesson is that personalisation should solve a problem or remove friction, not simply demonstrate analytical capability.
The idea of a virtuous versus vicious circle is especially important here. In the virtuous cycle, customers disclose information, see tangible value and deepen trust over time. In the vicious cycle, personalisation tips into surveillance, relevance feels guesswork‑based or insensitive, and customers disengage altogether. Once trust is broken, it is hard to repair, particularly for a family business where relationships span decades.
The third step, closing the feedback loop, is often overlooked. Family businesses excel when they listen actively, yet technology‑driven personalisation can distance decision‑makers from customer sentiment. Checking in, asking whether the experience ‘feels right’, and being prepared to dial back is a discipline, not a technical feature. It signals respect, which for many customers matters as much as the offer itself.
