Much of the discussion surrounding data privacy focuses on data breaches, misuse of user data, and disingenuous practices by bad actors. However, there are concrete steps businesses can take to help consumers proactively manage their data. Gerald Smith, VP, Privacy at Cuebiq, discusses why businesses should emphasize these steps to show they are serious about privacy and help consumers navigate the digital economy with confidence.
While consumers should be aware of these stories, the endless string of data breach alerts also risks fostering a sense of paralysis about the state of data privacy and what consumers can do to safeguard their information.
In essence, businesses need to summarize their privacy policies, which are often long, dry, and full of legalese. Businesses can help consumers understand their approach to data privacy by focusing on three issues:
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- The data the business collects and why
- What choices the user has over data collection
- How the user can express their preferences and learn more
If businesses follow these simple guidelines, they will rise above the current standards for communication with consumers about data collection. On the other side of the equation, if consumers know to look for these three things when they engage with businesses, they will be able to determine whether a business cares about privacy and if their data is in safe hands.Â
Here’s what businesses and consumers should think about when it comes to each of the three data privacy issues above.
See More: Data Privacy: A Business Playground or Management Minefield?
The Data the Business Collects and Why
The rampant collection, monetization, and sharing of data has become the norm in twenty-first-century business. For a long time, many businesses have expected that they should collect as much data as possible and monetize it with minimal consumer buy-in.
That period of business history is over. New data privacy regulations are forcing businesses to get the consumer’s consent for whatever they do with consumer data, whether that means using it to optimize products, sell ads, or build partnerships. In the private sector, gatekeepers such as Google and Apple are killing the third-party cookie and decreasing access to mobile IDs, also in a bid to force businesses to get consumer consent for data collection.
To meet these rising privacy standards, businesses should be clear with consumers about the data they are collecting and why. An effective privacy notice might read like this: “Hey, there! We collect data on the products you browse and ask for basic demographic information and zip code to provide more relevant product recommendations and ads from our sponsors. Do you agree?â€
Consumers should be able to use products and services whenever possible if they reject tracking (unless data is necessary for the basic functioning of a product or service). In addition, companies should regularly ask for permission to collect user data and collect as little information as possible. A consumer signaling consent for data collection once does not mean consent endures forever.
The Choices the User has over Data Collection
The request for consent raises another topic: the user’s options to manage data collection. The data-powered companies leading on privacy do not just ask for permission to collect data. They give consumers granular control over the kind of data companies collect and what they use it for.
Consider location data. It is one thing to ask a consumer whether they consent to hand over location data. It is another – and a better – privacy practice to ask precisely how much location data the consumer will share and in what situations. Businesses should also ask whom the consumer will let them share that data with and explain why they may want to share it.
Google and Apple have led the charge on more granular consumer control over location data. Consumers see this shift toward granular controls when an app asks them if it can collect location data all the time, only when they use an app or never. The operating systems’ push should lead companies to realize that more targeted consumer control is the future; they can get on board now or be left scrambling to comply with more stringent future privacy rules.
See More: Why Marketers Should Not Be Too Confident About Their Data Privacy
How the User can Express their Preferences and Learn More
Let’s say a business has mastered the first two steps required to be a proper steward of consumer data: outlining the data they collect and allowing the consumer to choose precisely what information they consent to divulge. The next step to providing a top-notch data privacy experience is giving consumers a platform or channel where they can convey those preferences and manage them on an ongoing basis.
This is where a lot of the paralysis around data privacy comes from: Consumers know they should have the right to tell a business not to collect their data or precisely what data to collect, but they do not know how to communicate their consent (or lack thereof). Companies leading on data privacy will provide a clear place for consumers to share and update their data preferences.
Another wise move for privacy-first companies would be to create content that empowers consumers to learn about the data privacy options. This would also allow businesses to make a case for the data collection necessary for their business. For example, if collecting location data improves the user experience, a company should direct consumers to a page where they can learn more about the benefits of providing their data when giving them the option to consent to location collection.
Leading with Privacy
Smart businesses will see privacy not as a cost center or a headache but rather as a potential arena for brand differentiation. Companies that empower customers to choose what data they share will earn the consumer’s trust and differentiate themselves from invasive rivals. That’s a win-win for businesses and customers alike.
What steps has your organization taken that enable better consumer data management? Share with us on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’d love to learn from you!