Why Data Privacy Is Good For Business - Forbes

Data privacy impacts how customers perceive the brand, how prospective and current employees view their workplace and how authorities and media ... BETAThisisaBETAexperience.Youmayopt-outby clickinghereMoreFromForbesAug16,2022,01:22pmEDTPreparingForIndustry4.0?These4ChallengesShouldInformYourPlanAug16,2022,01:15pmEDT10TechExperts’FavoriteToolsAndTipsForDiagnosingNetworkIssuesAug16,2022,12:32pmEDTSoftwareAsADefenseAsset-AConversationWithTheU.S.Army’sHannahHuntAug16,2022,10:15amEDTWhyEmployeeChurnIsKillingYourCompanyAug16,2022,10:00amEDTRansomware101ForHealthcareAug16,2022,09:45amEDTFDACybersecurityGuidelinesFacePublicCommentary:TheExpectedImpactAndCallToActionAug16,2022,09:30amEDTTheMetaverseImpactsTheFutureOfWorkMoreThanYouThinkAug16,2022,09:15amEDTFromUXToTheRiseOfData:HowAre2022PredictionsStackingUpInAChangingEconomy?EditStoryInnovationWhyDataPrivacyIsGoodForBusiness:OnlinePrivacyAsABrandingImperativeGalRingelForbesCouncilsMemberForbesTechnologyCouncilCOUNCILPOSTExpertisefromForbesCouncilsmembers,operatedunderlicense.Opinionsexpressedarethoseoftheauthor.|Membership(fee-based)Oct7,2021,08:15amEDT|SharetoFacebookSharetoTwitterSharetoLinkedinCo-founder&CEOatMine,asmartdataassistantthatconnectsconsumersandcompaniesarounddataprivacyrights.Learnmoreat saymine.com getty Data'simpactonbusinessisoftenviewedfromaverynarrowperspective:Weeitherdiscusscomplianceorhowcompaniesusedatainsightstoimprovepersonalizationcapabilities,targetusersandadjusttheirproducts.Butwemustconsiderawholeothersidetothisrelationshiptomaximizetheopportunitiesofferedbytoday'sdataprivacyclimate. Datapracticescansendcriticalmessagestoeveryoneregardingthecompany'sbusinessethicsandfitfortoday'sonlineculture.Dataprivacyimpactshowcustomersperceivethebrand,howprospectiveandcurrentemployeesviewtheirworkplaceandhowauthoritiesandmediaoutletstreatthecompany.Inshort,datapracticesofferachanceforbrandstotaketheleadandownastrategicspacefocusedondatatransparencyandaccess. Here'swhyyoushouldconsideryourdataprivacyapproachaspartofyourbusinessstrategy: DataPrivacyAsPartOfYourBrandingStrategy  Asmentioned,privacycanplayaleadingroleinthebrand'sperceivedbusinessethics.Thesamewaypeoplenowcheckhowacompany'sactionsimpacttheenvironmentandseektobuyfrommoresustainablebrands,theworldistakingacloserlookatcompanies'privacypoliciestolearnaboutthevaluesbehindthename.ThefactthatleadingbrandslikeAppleandGoogle choosetodemonstrateamoreresponsibleapproachshouldtellyoujustthat.  MOREFROMFORBESADVISORBestTaxSoftwareOf2022BestTaxSoftwareForTheSelf-EmployedOf2022IncomeTaxCalculator:EstimateYourTaxes Ifyouwanttoplayinthesamecategoryasmarketleaders,joiningthedataprotectionandtransparencyclubmaybeagoodmove: •Takeacloserlookatyourdataprivacypracticesandseeifyoucanimproveanything,suchascollectinglessdata.Onceyou'vereviewedyourprivacypolicy,makesureit'saccessiblefortheaverageuserbymakingitclearandconciseandexplaininghowthedatathatyou'recollectingbenefitstheuser.YoucouldevenincorporateitintoaPRefforthighlightingyourcompany'sdedicationtoyourcustomer'sprivacy.   •Hirededicateddataprivacyprofessionalstooverseedataprivacywithintheorganization.Youcanalsosharetheknowledgewithothersandofferrelevantadvicetootherbrandsthroughwebinarsandspeakingopportunitiestopositionyourbrandasaleaderinthespace.  •Remindyourcustomersthattheballisalwaysintheircourtbyenablingeasydatamanagementthroughyourwebsitethatwillharnesstransparencyandtrust.  Manycustomerstodayconsiderhowyoutreattheirdataaspartofyourcustomerexperienceandservice.Infact,asurveybyCiscocitedbytheHarvardBusinessReviewfoundthat90%ofconsumersbelievethatthewaystheirdataistreatedreflecthowthey'retreatedascustomers.Ifyourcompanyhasahiddenagendaincollectingandusingtheirprivateinformationwithoutgivingcustomersaccesstotheirdata,itcanhurtyourbrandandportrayyourcustomerexperienceinanegativelight.Transparencygoesalongwaywithcustomers,andyourdatapracticeswilltellaudiencesalotaboutyourbrand,evenifyouhadnointentionofdoingso.  It'simportanttorememberthatyoushouldalwaysbalanceprivacyagainstvalue.Thedataownershiprevolutionisfocusedonensuringthatanydataweprovideisgiveninexchangeforactualvaluefromaserviceorproduct.Themoreinformationyouaskforortrade,themoredifficultitmaybetoconvincecustomersthatyou'reworthit.  Accordingtostudies,theaudienceswillingtoactivelyembraceorabandonbrandsbasedonhowtheytreatusers'personaldataareyounger,richerandshopmoreonline,accordingtothesameCiscostudymentionedabove.Thistriplethreattellsbusinessesthattoday'sandtomorrow'spurchasingpowerliesinthehandsofthosewhocareabouttheirdataandchoosebrandsthatfitthebill.  RecruitingTalentWithADataPrivacyPolicyInMind Hiringthebestpeopleisanessentialsteptowardssuccess.Thebattleovertalentinmostmarketsisfierce,withcompaniesexperiencingasevereshortageofskilledandmotivatedworkers.AccordingtoHRwebsiteGlassdoor,companiesinvestalotofeffortinshapingandnurturingtheiremployerbrandingbecausetheyknowthatintheU.S.,86%ofwomenand67%ofmenwouldn'tworkforacompanythathasabadreputation.AsimpleGooglesearchcanrevealacompany'sdataprivacyproblemsandimpactapotentialhire.Ifapopularcandidatelearnsthatthecompanyisattentiveandadvancedinitsapproachtodata,itcanaddmuch-neededpointsandmaywinthebusinessaloyalandcapablenewemployee.  Foremployees,howyoutreatcustomers'informationcanreflecthowyoutreatyourteam'sprivacyandrights.Acompanythatcollectsortradespersonaldatawithoutconsentorproperconsiderationtellsitsemployeesthattheymightbemonitoredwithouttheirknowledge.Thisfeelingcanaffectemployees'satisfactionandperformancerates,withmorethanhalfstatingthatworkplacesurveillancemakesthemanxiousandnearlyhalfwillingtoreducetheirpayinexchangeforbetterprivacypractices,accordingtoanExpressVPNsurvey. Let'sNotForgetCompliance Wecouldn'tpossiblydiscussdataprivacyasabusinessimperativewithoutmentioningregulation,finesandtheirimpactonanorganization'sfuture.  GDPRfineshadcomealongwaysincetheslap-on-the-wristwhenthelawwasfirstintroducedin2018.Infact,betweenJuly2020andJuly2021,thefinesincreasedby113.5%.Multiplerecordshavebeenbroken,andthistrendislikelytogrowevenfurtherasthedebatearoundprivacyaccelerates.  Fines,andthebadPRthatfollowsthem,canimpactbrandvalueanddemandheftyresourcesfromacompany.Theyaffecthowexistingandpotentialnewcustomersviewthebrandandmaybeincrediblyhardtorecoverfrom. Organizationslookingtomaintainandfurtherbuildtheirbrandshouldincludeadataprivacyaudittotheirstandardpractices.Iftheresultsaregreat,lettheworldknowandreaptherewards;ifthey'renothingtobeproudof,nowisthetimetoimprove.  ForbesTechnologyCouncilisaninvitation-onlycommunityforworld-classCIOs,CTOsandtechnologyexecutives.DoIqualify? 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