Why Businesses Should Go The Extra Mile With Data Privacy
Data is the fuel for modern businesses as it eliminates the guesswork from decisions. You end up with better decisions that deliver real value without wasting time, money, and resources. Not surprisingly, most organizations gather and analyze consumer data to build targeted marketing campaigns. But when you handle consumer data, you must ensure its privacy, considering the growing concern of breaches and thefts. The responsibility goes beyond ethics and values, and there are more reasons to go the extra mile with data privacy. Let us explain them in detail.
Prevent theft that hurts consumers
Robust security for personal data involves measures through all stages like collecting, processing, storing, sharing, and disposing of the data. A breach at any stage can hurt the consumers. Hackers can misuse the financial data of consumers and attack bank accounts. Identity fraud is another threat that consumers face when their personal information gets compromised. Businesses must do their bit to address such risks.
Build and retain customer loyalty
A breach not only hits the customers, but also affects their loyalty to your business. You may even risk losing them for good as they no longer trust organizations that go slack with their personal information. People tend to switch brands immediately and even spread the word about the negligence of the business. The threat is bigger than you imagine as you may end up with immense losses in revenues in the long run.
Meet compliance requirements
Every business that collects and handles personal data needs to follow some regulatory guidelines such as GDPR and HIPAA. Failing to comply with them can put you on the list of companies misusing data illegally and without the consent of owners. Non-compliance with laws and regulations can lead to massive penalties for an organization. These fines can run in millions of dollars, so you can imagine the financial impact they can have on your company.
Maintain brand value
Surveys indicate that organizations can sustain damage to reputation and brand value due to privacy breaches. When you seek consumer data, you commit to protecting its privacy. But failing to follow privacy practices indicates that you do not care about your customers. Conversely, going the extra mile with it enhances and maintains brand value and fosters stronger connections with existing and potential customers.
Support business ethics
Most organizations commit to a code of ethics they follow as a part of their operations. Even those without such policies have to follow ethical practices to sustain themselves for the long run. These policies and practices indicate the commitment to handling consumer data responsibly. Being ethical with your ways enables you to maintain public and investor trust in the long run. Overall, these factors are essential for the growth and sustainability of a business.
Consumer data is more than an asset for businesses. It is more like a responsibility to fulfil. You must be careful when you collect and use consumer information. Failing to do it can hit your bottom line and reputation harder than you imagine.