In today’s interconnected world, data has become one of the most valuable assets for businesses making data privacy a crucial part of marketing. With the rise of data protection laws in response to cyberattacks, ensuring customer data is secured is no longer just a business standard, it’s a business requirement. Emphasizing customer data privacy and integrating it into your marketing strategy can foster trust with your audience while ensuring your company stays compliant.
There are data protection laws in place that instruct businesses how to protect the personal data of its customers so that the company can benefit from the data, while keeping these customers’ information safe.
Why Companies Collect Personal Data
In the age of targeted marketing, the success of your business and revenue hinges on how much personal data you collect, use or share. This isn’t limited to just online businesses. Nearly all businesses collect personal data because it allows a business to understand the trends and preferences of their target audience.
This data is collected in a variety of different ways, and whether it’s collected indirectly via cookies and tracking codes or directly by the customer via a form, it needs to be kept private and secure.
What Exactly Is Personal Data?
Personal data can be broken down into two categories, personal data and sensitive personal data. Both need to be kept private, but one could have far more harmful consequences if it is breached.
Personal data, which we often hear referred to as personal information, is information that alone, or combined with other details, could directly identify an individual or household. Personal data includes a person’s name, email address, home address and phone number.
Sensitive personal data is subject to more stringent requirements under most data privacy laws due to its vulnerability. Sensitive personal data includes race, gender identity, sexual orientation, health information, biometric data, personal ID numbers (like social security number) and IP addresses.
Whether it is personal data or sensitive personal data, it must be protected.
Committing to Data Privacy Is Important
A commitment to data privacy is important for several reasons, including establishing trust with your customers, complying with data privacy laws and regulations, plus maintaining ethical practices. It also helps companies to build effective data management practices, as well as minimizes the risks and costs associated with a data breach.
GDPR paved the way for modern data privacy laws in 2018, with CCPA quickly following suit in 2020. These laws forced companies to evaluate their processes and update their practices, giving people more control over the collection and use of their own personal data.
How to Demonstrate You are Committed to Data Privacy
Demonstrating compliance to these laws can been accomplished in a variety of ways.
- Obtain Consent: Include a method for opt-in consent during data collection as well as the ability to request the deletion of personal data by that individual
- Privacy Policy: Develop a company privacy policy page for your website that is easy to find and explains how your business collects, uses and protects data
- Transparency: Be transparent about how you manage information and what tools you use to process it
- Data Collection: Limit the amount of data you collect, garnering only data points that are absolutely essential
Data Privacy Increases Trust
Companies that focus on user privacy from the beginning are less likely to experience breaches, while garnering greater customer trust.
Data collection is a common and expected practice in our digital age, but customers still want to feel like the collection is beneficial, not just a way to feel ‘watched’. Clear communication about data usage and protection policies can foster trust. Companies that prioritize data privacy and security can see loyalty increase as customers find that they feel safe and that their privacy rights are being respected.
For B2B marketers, data privacy is a fundamental aspect of building trust and maintaining successful client relationships. By adopting transparent, secure, and ethical data practices, marketers can foster deeper connections with their audience while staying compliant with global regulations.