I am sure you have heard of the abbreviation, GDPR in the context of data laws and privacy. Many of you also know that GDPR stands for General Data Protection Regulation. While the law had been drafted by the European Union and came into effect in 2018, it stands universally valid as the global standard in the field of data protectionism.
In the last few years, ‘data’ has emerged as the new oil’, given how our life has become dependent on technology and digital frameworks. For businesses, this presents an entirely new set of possibilities and challenges.
Possibilities, as better and efficient use of data can lead to profits and engagement. Challenges as maintaining data and using it is ethically judged and poor handling leads to fines, loss of face and revoking of licenses.
In this article, we look at why Data Privacy has become a hot topic for businesses of all scales and sizes in 2020. We also look at some major advantages of maintaining data privacy for businesses.
Data Privacy: What does it mean?
Data Privacy is a subset of maintaining and managing ‘data quality management’. It translates into how data is used or handled and includes value added terms like consent, regulations, laws and ethics.
Many of you would already be aware of the fact that our online and offline engagements lead to interaction with different brands and businesses. Elementary aspects of our data include information like-names, phone numbers, email ids, physical addresses, etc. Advanced information like card details, bank details, purchase history, preferences, are also collected and stored.
For a customer the belief is that this information can lead to the fulfilment of better service, improved experiences, discounts and coupons. For a business, collecting data can mean the same thing.
However, in recent years, some businesses have been using the same unethically to drive sales, get target audiences, and sell the data to earn revenue or simply be a menace on online platforms.
This is where how user data and privacy should apply become important considerations. Most international organizations, national governments and civil society groups have become very aware and strict on how data is to be used.
How can Data Privacy help a Business grow?
At a time when there are major credibility issues around using data, businesses can present a responsible face. There are some, who have prioritized data privacy and are using it as their major customer magnet.
Data privacy is no longer a very important issue. Consumer awareness of data privacy has become more mainstream. People are more interested in brands and businesses, which are ethically driven when it comes to consumer data. So you can also take this opportunity and take a data science course and become a data science expert and become a certified data scientist.
People want to associate and use products and services of businesses who are transparent about their data policies. This helps make consumers feel that they are in charge as they have the option of making their data known to the business or withhold the same. ‘Consent’ is one watchword, which has come to the fore in the entire argument surrounding data privacy.
In other words, data privacy can be a major marketing and sales strategy for businesses, who are looking to exploit this dimension. It does not matter what your business is about. If you are a food chain or a jeans brand, you can actively market your ethical data policies to woo customers.
Rather than fear the fact that they would not be able to sell data to illegal third party data brokers, businesses should start integrating data privacy as one of their foremost pillars. The shift to digital and online channels means that it is essential for businesses to integrate stringent data protection structures and strategies in place.
This will not only help the company from protecting its own internal data sets, but also encourage customers to avail their products and services without fear or favour. Winning the data privacy battle can go a long way towards building a brand’s credibility, reputation and value.