Consumer trust in how companies use and protect their data is in crisis
TREND 5 DIGITAL PRIVACY
Consumer trust in how companies use and protect their data is in crisis. It’s never been more important for businesses to evaluate their privacy policies and processes, not only to avoid scandal but to keep and grow their customer base and revenue.
People are more aware than ever of their digital footprint, but that doesn’t mean they feel in control of it. Targeted advertising techniques that stalk users around the web or make them feel eavesdropped on have given rise to a deep skepticism about the integrity and transparency of businesses online. Then there are scandals like Cambridge Analytica that have brought ethics in digital privacy and data protection to the forefront of people’s minds.
Businesses everywhere must ensure their processes and policies on how they collect, protect, and use people’s data - including via third-party services - are rigorously thought through, implemented, and governed. A useful framework for achieving this across a business is for leaders to champion the six fundamental elements of trust.
Instill strong moral principles across your business on how systems are designed and data is used that focus on what’s best for the customer, not the business. Meeting regulations is not enough. Your business must demonstrate your moral alignment with the reasons why privacy laws exist by going above and beyond them.
Demonstrate to customers your company’s ability to put these principles into practice. This comes down to the rigor with which you implement and test the systems and processes designed to protect the digital privacy of customers.
Clear communication is key. Be upfront about how you will be storing and using the data people share with you so nobody is negatively surprised down the line. Make your ethical principles and data policies accessible both in terms of location and language.
Is operating in the interest of the customer built into your wider business ethos? Trust is quickly lost and hard to win back. Your business needs a proven track record of designing systems that protect customer data and digital privacy. If this hasn’t been a priority to date, you may well have some reputational damage to overcome.
Create mechanisms for monitoring and evaluating the effectiveness of privacy protection processes and assessing the risks of current and future technologies. Your business will be considered responsible for the ecosystem of products and suppliers you’re using, so it’s important to thoroughly audit how any third-party systems are managing your customers’ data.
Are you consistently delivering on the previous five points? Trust is essential for any business to thrive. The next decade will demonstrate just how crucial it is for businesses to invest in protecting their customers’ data, privacy, and security online or be swallowed up by their rivals who do. ⬥
