Across the past several years, consumer attitudes and expectations around data privacy and security have shifted, as influenced by a profusion of new data breaches, more online shopping and momentum around remote work.
A recent survey indicates that over 50% of consumers are uncomfortable with the data that companies collect due to opaque data collection practices. Consumers want to know why their data is being collected, how it will be protected and whether or not there’s a fair value exchange.
Although rigorous data management puts new pressures on businesses, companies that go beyond compliance and place data privacy front and center can gain a competitive advantage, maintain digital trust, prevent breaches and improve brand value.
Data Privacy: Good for Business
Businesses can benefit from data privacy strategies in tangible ways. 97% of brands have identified at least one benefit derived from data privacy investments, and 75% of brands report at least two positive outcomes derived through increased data privacy measures.
- Competitive advantage: In the coming years, transparency and accountability around data collection and protection will serve as competitive differentiators for brands. Consumers want to know about what’s happening with their data. By telling them, you build trust, which is a foundational component of business growth and success.
- Building digital trust: The level of trust built through transparency can be statistically significant and can directly impact revenue. For example, research shows that sales teams experience fewer delays in the sales cycle when customers’ data privacy concerns are addressed. Deals closed up to two weeks faster when buyers felt comfortable with data privacy practices.
- Preventing breaches: Among organizations with privacy and compliance investments, fewer data records have been affected in the wake of breaches than would have otherwise been the case. Additionally, when breaches did occur, overall breach-related costs were lower than they would have been without strong data protections.
- Improve brand value: Brands that implement robust data privacy strategies and outreach efforts will strengthen and grow their market presence. Customers will seek them out over competitors who do not visibly prioritize data privacy.
Strategies for Businesses
Many companies leverage consumer data to gain more comprehensive insights into consumers’ pain points and emerging needs. The data drives new product development service modifications and can help personalize advertising, benefiting consumers and companies alike. But new consumer expectations can catch businesses off-guard. The following strategies can assist enterprises in navigating new consumer expectations around data privacy:
- Build a privacy-first ecosystem: Consider building out cross-functional data privacy teams if you don’t already have them, and communicate your data protection policies to consumers.
- Adopt automation solutions: These can allow businesses to do more analysis and to gain a wealth of insights with less data.
- Data mapping: This helps organizations register, categorize and track their data from consumers.
- Only collect what you need: Define the data that’s necessary to improve products or services. Mitigate security risks by limiting the amount and type of data that your organization collects.
- Gen V attack security: When you tell your customers that their data is protected, you want to tell them that it’s protected from the most advanced threats. To do this, implement Gen V security solutions.
Although consumers have higher expectations around data privacy than ever before, many brands are not prepared for a cookie-less world. By building more robust data privacy measures into current marketing frameworks, cookies, consumer confidence and business growth might be able to co-exist.
Don't Forget
Data privacy isn’t just a nice-to-have. It’s generally good for businesses. The benefits go beyond simple regulatory compliance and avoidance of lawsuits. Data privacy initiatives function as business enablers and business stabilizers. Innovation in data privacy can improve value for businesses and consumers alike.
While data privacy maturity is the new standard, it can feel out-of-reach for fast-growing, marketing-driven companies. The good news is that straightforward strategies can help businesses meet new data privacy goals and objectives. These range from building a privacy-first ecosystem to ensuring that freshly implemented technologies can secure against Gen V attacks.