How can companies effectively balance the need for collecting data on customer preferences and behaviors with maintaining customer trust and privacy in the age of increasing data privacy concerns?

Companies can effectively balance the need for collecting data on customer preferences and behaviors with maintaining customer trust and privacy by being transparent about their data collection practices and obtaining explicit consent from customers. They can also implement strong data security measures to protect customer information and only collect data that is necessary for improving customer experiences. Additionally, companies can provide customers with options to control how their data is used and ensure compliance with data privacy regulations to build and maintain trust with their customers.