How can companies effectively balance the need for personalized customer service with the growing concerns around data privacy and security in today's digital age?

Companies can effectively balance the need for personalized customer service with data privacy and security concerns by implementing transparent data collection practices. They should obtain explicit consent from customers before collecting and using their personal information. Companies can also invest in robust cybersecurity measures to protect customer data and comply with data protection regulations. Additionally, offering customers control over their data, such as the ability to update preferences or delete information, can help build trust and maintain a positive relationship with customers.