Data privacy is a reality that we all have to acknowledge. It has become imperative for businesses and marketers to keep their customers’ data secure, even if it means breaking the mold and changing their delivery methods. In this data-driven era, there are plenty of reasons why data privacy matters, and marketers need to understand them to stay relevant in this digital world.
The need for Data Privacy in a data-driven Era
Data privacy is more than just an ethical mandate for businesses; it’s a necessity. Companies are at risk of being hacked and data stolen or leaked, which can lead to legal problems and loss of reputation. A Data privacy breach can potentially destroy a company’s reputation, thus affecting its bottom line. For example, in 2017, Equifax lost control over the personal information of 145 million Americans when hackers targeted their servers. It led to several lawsuits against the company and contributed significantly towards its financial struggles later that year.
In addition to potential legal issues resulting from breaches in data privacy, businesses will also be faced with declining profits. It is due to poor client retention as consumers become wary of giving out too much personal information online or offline via traditional forms, such as phone calls or emails (which often ask for sensitive details such as social security numbers).
Targeted marketing and advertising
The ability to target marketing and advertising is one of the most significant features of online marketing. The reason for this is simple: it allows you to increase your sales by reaching out to a specific group of people who want what you have to offer. If you’re selling a product or service, targeting your audience with ads on social networks like Facebook, Instagram, or Twitter will help you reach more people within their preferred group—and drive conversions from there.
For example, targeting “people in New York” would be precious if you’re trying to sell furniture. Those who live in New York are likely spending a lot more money than people who live elsewhere, like Washington D.C., which means they’re also more likely willing and able to buy something immediately (or soon).
Fraud detection and risk management
Fraud detection and risk management is a big part of data privacy, as it’s essential to protect your company from fraudsters who may attempt to use your information against you. Fraud can take many forms, but most often, it’s identity theft or credit card fraud. In identity theft scams, criminals steal personal information to apply for credit cards or loans under someone else’s name. Credit card fraud is when a criminal pretends they are the actual credit card holder when making an online purchase. Rather than using their card number and paying off the balance later (as one might do with a debit card), they run up huge bills that the victim has to pay later.
In addition to protecting yourself from someone stealing your identity online by using false information about themselves, there are several other ways data privacy helps combat fraud:
Tools such as data mining and data analytics
Data mining and analytics are two of the most popular tools in today’s online marketing landscape. Data mining includes analyzing data and extracting information from it, while data analytics includes collecting and analyzing data to make decisions. Both have been around for decades, but with the advent of big data—the idea that businesses can now manage, store and analyze massive amounts of information on their customers—these methods have become even more critical to marketers.
Understanding how people interact with one another online can help any business better understand its clientele or competition. It is beneficial when you’re trying to figure out what kind of products your customers like best or predicting which social media platform will help you reach more potential customers next year (spoiler: it’s Integra).
What are user profiling and social media monitoring?
User profiling is learning about a user based on their online activity. It can include things such as:
- Where do they spend their time online, what websites do they visit, and what content do they consume?
- What devices do they use to access the internet, and what is the location of those devices at different times of day or night?
- Have they made certain purchases or provided personal information (such as credit card numbers)?
In other words, user profiling allows you to build detailed profiles about your users and may give insights into how those people behave in real life! You can then use this data to predict future actions and behaviors.
Technology has been evolving at breakneck speed.
Technology has been evolving at a breakneck pace. As the Internet of Things (IoT) grows, so does the data we create and consume. The challenge is that marketers need to keep up with this technology or risk falling behind their competitors who are using it to grow their businesses.
The best way that marketers can stay ahead in this space is through constant innovation, but it’s not always easy for them to do so. It can be especially true if your company doesn’t have a dedicated IT department or analytics team on board to help keep things running smoothly from an IT standpoint. You may be working with legacy systems that aren’t designed for today’s data management needs—or worse yet—you may not even know exactly how much data you currently have stored away somewhere within those systems. Given all these constraints, it can be tricky (and expensive) to figure out what new technologies might work best.
Lack of data privacy makes people vulnerable to cyber-attacks.
It’s a human right, and failure to uphold it can result in severe consequences. Ethically, businesses must recognize and respect privacy when handling consumer information. Data privacy is a fundamental human right, so companies that handle sensitive data for their clients must be sure about how they handle that information. Additionally, failing to maintain high standards of security will not only lead to financial losses but also result in legal action against your company or organization—both scenarios which can have lasting repercussions on your business.
In light of these facts and others like them, it’s clear that maintaining privacy should be one of the main priorities when creating or managing an online marketing campaign strategy. Without proper attention paid to protecting consumer data during every step along the way with care and consideration, you run into all sorts of issues ranging from compromised brands’ reputations being tarnished through fines levied by regulatory agencies such as European Union GDPR regulators or even lawsuits filed by consumers due simply because they were unable to find out what happened with their private information after sharing it with you (or someone else)
Privacy concerns stifle innovation.
In today’s world, data privacy is a business imperative. It’s not just an ethical necessity or legal requirement—it’s also a moral one. If you don’t protect your customers’ privacy, they won’t trust you with their information, and they won’t be able to take advantage of all the fantastic things that can happen when they share it with others (or even with you).
Most people do not trust businesses with their data.
You may think, “My customers are happy to give me their contact information, and I offer them something in return for their data.” However, the reality is that most people don’t trust businesses with their data.
People are concerned about the security of their data; they don’t want it shared with third parties or sold on the dark web. They are also worried about whether a company will use their information ethically and for purposes that benefit them or merely exploit them for profit.
As a marketer, you must show your customers that you can be trusted before they share personal information. So make sure to establish clear policies on how exactly they intend to use each type of customer data (such as email addresses).
The Right To Be Forgotten
The right to be forgotten lets individuals delete their personal data. It is an individual’s power over their information and privacy and has been protected by European Union law since May 2018. The right was introduced as part of the GDPR, which aims to protect EU citizens’ personal data and ensure it’s only used for legitimate purposes.
The GDPR outlines two ways to remove your information from a website: if you want your entire profile removed and if you only wish to remove specific parts of your profile.
People are less willing to share their personal data.
In the past, you might have been able to get away with gathering personal data on your users. But today, people are more aware of the risks and know their personal information is valuable. They’re also more aware of the potential for abuse and misuse.
And now, people are less willing to share their personal data because they’re not just giving out their names and addresses anymore—they’re giving up their entire digital identities.
Data privacy is not just an ethical but also a business imperative
It has been proven to be profitable. For example, the European Union’s General Data Protection Regulation (GDPR) requires companies that process personal information to protect people’s rights, including their right to access and delete their data. In addition, it has helped build trust with customers and loyalty among users and increase brand value.
Data privacy is essential for consumers and businesses because it impacts their bottom line. More than half of American consumers indicated that they would sign up for a new service or abandon an existing one if they could keep their personal information private. It makes it clear why companies need to focus on ensuring that they are doing everything possible to maintain customer satisfaction while at the same time staying compliant with regulations like GDPR.
Conclusion
In conclusion, data privacy is an important issue that affects everyone. It is not just an ethical but also a business imperative. We at ICS have taken the initiative to protect our customers’ data and provide them with the best possible service experience in line with their expectations.
