The status quo in business was that customers would almost blindly hand over their personal data in exchange for a product or service and little consideration was given to what happens with all that collected data. Today’s privacy savvy customer is different – these customers are demanding transparency around the personal data that is being collected and how it is managed and secured by the product/service owners. As a result of this behavioral shift, data privacy has emerged as the tool to stand apart from your competition.
Take a Proactive Approach to Data Privacy
The first step to securing this competitive advantage is to take a proactive approach to data privacy. Take the time to review privacy laws that are applicable to your organization and build your governance strategy around them. This puts you in the driver’s seat and helps set the standard by which others will have to keep up with.
While governance lays a solid foundation to build from, data privacy should be approached as the new UX. Recent studies have shown that 90% of customers are more likely to buy from a company who can prove that they take steps to protect their data. That’s why approaching data privacy from a UX standpoint makes sense. Companies should be thinking of ways to build cross-functional teams that can bridge the legalese with an enjoyable user experience – ensuring governance standards are met but making it fun for their customers.
Consider Accountability in your Data Privacy Strategy
Accountability is another major component of your data privacy strategy. While customers are loyal to companies that they feel they can trust, building that trust takes a measured approach. Offering more than lip service, accountability in your data collection policies will help you not only build that reciprocal trust but help build that competitive advantage in your industry.
In business, consumer trust is everything. Any given week, there are new reports of the latest company that’s found itself on the wrong side of a data breach headline – often resulting in losses to the company’s bottom line and even harder to replace losses to their reputation with customers. It’s no surprise then that companies like Apple, Amazon, and Facebook are all looking to data privacy as a product differentiator in their core businesses. In today’s interconnected world, data is everything but when handled right, data privacy can be a gamechanger and the ultimate competitive advantage for your firm.
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