Data privacy protection is becoming a necessity for businesses today.
Data theft has cost businesses billions of dollars in the past year alone. According to the Identity Theft Resource Center, consumers lost $16 billion due to identity theft in 2017. And, according to Verizon’s 2018 Data Breach Investigations Report, cybercriminals made off with more than 2 billion records from U.S. companies in 2018 alone with 1 in 5 retailers experiencing a breach.
But why does data privacy protection matter?
Because it helps drive sales and revenue growth which in turn helps reduce the risk of future breaches and fraud and protects your brand reputation, as well as your bottom line.
You can see below some main points why data privacy protection is so important for businesses today:
- Personal information can be used to harm people
- Buyer preference is based on personal information
- Information can be used as a source of identity theft
- Data breaches can put you out of business
- Data breaches cost millions of dollars each year to clean up
Why is information and privacy compliance important for your business?
With the rise of big data, more and more companies are using their data to improve the customer experience. But with this comes a greater risk of exposing private information, which can be damaging to your company’s reputation. However, it can be expensive and time-consuming to keep up with the latest data security standards. The good thing is you can have a privacy solutions company on your side. They’ll help you define the scope of what needs protecting and how to do it. Once they’ve done their part, you’re in charge of working with your legal team and IT staff to implement the solution.
Below are seven reasons why information and privacy compliance is important to your business:
Improved customer acquisition and retention
One of the most important reasons for data privacy protection is that it will help you retain existing customers and attract new ones. You will be able to easily identify who has used your products in the past, which means that you can contact them with relevant offers or send them relevant messages when they are looking for new solutions.
Better customer understanding
Knowing more about your customers and how they interact with your products helps you develop better business solutions that meet their needs more effectively than ever before. You can also take advantage of this information to improve marketing campaigns, so that they become more effective and less expensive for both parties involved.
Increased profits
Data privacy protection makes it possible for businesses to collect information about customers’ needs and preferences so that they can create products or services tailored specifically for them individually, which will result in higher profits for everyone involved!
It helps you stay competitive
Businesses can use data privacy protection to stay competitive. It is a way for companies to ensure that they are not only protecting their own data, but also the data of their customers. When you have a website or business that works with customers, you want to make sure that they trust you with their information.
You can do this by making sure that your website is secure and encrypted. This will help prevent unauthorized access from hackers or other people who may be looking for information about your company or products. If someone does gain access to your system, then it will be difficult for them to find out any information about your company or customers unless they already have it in their possession.
It protects your brand and reputation
Data privacy protection is a critical component of any business. It protects your brand and reputation, allows for greater transparency across the organization, and enables the company to be more agile when it comes to responding to new opportunities and challenges. It’s also important that you understand how data privacy protection works.
If you are in a competitive industry, it’s important that your customers trust you with their personal information. Research has shown that people are most likely to buy something from a business they know and trust. You can build this trust through various means, including sharing relevant content on social media or using videos or other content that showcases your brand personality or values.
Data privacy breaches can lead to bad press and lost customers, which can dent your reputation and hurt sales.
It helps you retain customers
In today’s world, customers have very high expectations and they are constantly looking for new ways to optimize their experience with a company. By protecting your customer’s data, you can ensure that they keep coming back to your business and using it again in the future. When customers know that your company is doing everything it can to protect their personal information and keep it secure, they’re more likely to trust you with their most sensitive information.
This trust will in turn help you retain customers who may otherwise leave due to privacy concerns. It also helps increase customer loyalty and advocacy, leading to increased sales and revenue.
This not only makes you more money in the long run but also helps you stay ahead of your competition.
Reduces your compliance costs
When it comes to data privacy, the benefits are many. We know that a company’s reputation is at stake when they have a data breach. This can negatively impact the business, financial performance, and customers.
Companies with a solid data privacy policy can show they are taking their responsibilities seriously by reducing the number of fines they receive from regulators. This can help them keep their heads above water in a highly competitive marketplace.
Data privacy also brings great benefits to businesses that use it as part of their daily operations. Privacy policies allow companies to focus on what really matters providing value for their customers rather than spending time and money trying to comply with ever-increasing regulations or defending themselves against lawsuits for failing to do so.
Final Words
Data privacy (and security) is an issue that doesn’t seem to be going away. This is especially true among larger corporations, which are heavily invested in the protection and safety of their customers’ personal information.Companies now have been investing more and more in data privacy protection. What’s even better for businesses is that doing so brings with it plenty of benefits, as exemplified by the examples listed above. In today’s increasingly interconnected world, data privacy issues aren’t going anywhere anytime soon. Still, a strong commitment from businesses to protect customers’ information can go a long way in helping them ensure their own success and all without breaching any ethical or legal boundaries.