Over the past few years, consumer attitudes and expectations regarding privacy and data security have changed, influenced by a profusion of new data breaches, an increase in online shopping and the momentum around remote work.
A recent survey indicates that more than 50% of consumers are uncomfortable with the data companies collect due to opaque data collection practices. Consumers want to know why their data is collected, how it will be protected, and whether or not there is a fair value exchange.
While stringent data management puts new pressures on businesses, companies that go beyond compliance and put data privacy first can gain a competitive advantage, maintain digital trust, prevent breaches and improve brand value.
Data Privacy: Good for Business
Businesses can tangibly benefit from data privacy strategies. 97% of brands identified at least one benefit from investing in data privacy, and 75% of brands report at least two positive results from increased data privacy measures.
- Competitive advantage: In the years to come, transparency and accountability around data collection and protection will serve as competitive differentiators for brands. Consumers want to know what’s going on with their data. By telling them, you build trust, which is fundamental to business growth and success.
- Building digital trust: The level of trust established through transparency can be statistically significant and have a direct impact on revenue. For example, research shows that sales teams experience fewer delays in the sales cycle when customer data privacy concerns are addressed. Offers concluded until two weeks faster when buyers have felt comfortable with data privacy practices.
- Prevent violations: Among organizations that have invested in privacy and compliance, fewer data records have been affected as a result of breaches than would otherwise have been the case. Additionally, when breaches did occur, overall breach costs were lower than they would have been without strong data protections.
- Improve brand value: Brands that implement strong data privacy strategies and awareness efforts will strengthen and grow their presence in the market. Customers will seek them out over competitors who obviously don’t prioritize data privacy.
Many companies are leveraging consumer data to gain more comprehensive insights into pain points and emerging consumer needs. The data drives changes to the New Product Development Service and can help personalize advertising, benefiting consumers and businesses. But new consumer expectations can catch businesses off guard. The following strategies can help businesses manage new consumer expectations around data privacy:
- Building a Privacy-Focused Ecosystem: Consider building cross-functional data privacy teams if you don’t already have one, and communicate your data protection policies to consumers.
- Adopt automation solutions: These can allow businesses to do more analytics and gain a wealth of insights with less data.
- Data mapping: This helps organizations record, categorize, and track their consumer data.
- Collect only what you need: Define the data needed to improve products or services. Mitigate security risks by limiting the amount and type of data your organization collects.
- Security against Generation V attacks: When you tell your customers that their data is safe, you mean to tell them that it’s safe from most Advanced threats. To do this, implement Gen V security solutions.
Although consumers have higher expectations for data privacy than ever before, many brands are unprepared for a world without cookies. By integrating more robust data privacy measures into current marketing frameworks, cookies, consumer trust and business growth could co-exist.
do not forget
Data privacy isn’t just a plus. It’s generally good for business. The benefits go beyond simple regulatory compliance and avoidance of lawsuits. Data privacy initiatives work as business enablers and stabilizers. Innovation in data privacy can improve value for businesses and consumers.
Although data privacy maturity is the new norm, it may seem out of reach for fast-growing, marketing-focused businesses. The good news is that simple strategies can help organizations achieve new data privacy goals and objectives. These range from creating a privacy-focused ecosystem to ensuring that recently implemented technologies can protect against Generation V attacks.