How can companies balance the need for data collection to improve customer experiences with the growing concerns about privacy in the digital age?

Companies can balance the need for data collection by being transparent with customers about what data is being collected and how it will be used. They can also give customers control over their own data through opt-in/opt-out mechanisms. Companies should prioritize data security and compliance with privacy regulations to build trust with customers. Additionally, they can focus on collecting only the necessary data to improve customer experiences, rather than collecting excessive amounts of data.