How can companies strike a balance between collecting necessary customer data for personalized service and ensuring strict data protection measures are in place to maintain trust and loyalty in today's digital age?

Companies can strike a balance by being transparent with customers about the data they collect and how it will be used. They should only collect necessary data for personalized service and ensure that strict data protection measures are in place to safeguard customer information. Companies can also implement data minimization practices to limit the amount of data collected and regularly review and update their data protection policies to comply with regulations and industry best practices. By prioritizing customer privacy and security, companies can build trust and loyalty in today's digital age.