From AI-enabled chatbots to ads based on individuals’ search or social media activities, digital data offer novel ways to connect with customers. These connections can develop into intimate customer relationships that boost satisfaction, engagement, and ultimately, loyalty. Consider Netflix’s recent personalization strategy, which enabled viewers of its series Bandersnatch to choose the main character’s actions throughout the episode, leading to five unique endings.

But there is a point where customer intimacy and invasion of privacy blurs. For instance, as early as 2012, Target predicted a teenage customer’s pregnancy through her historical purchase pattern data and sent her baby-related coupons, to the surprise of her parents.

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