Data Privacy Day is here! Why is this day so exciting?  Companies are finally realizing the power of privacy can have several benefits including the following:

  • Building brand trust
  • Driving a positive ROI
  • Staying ahead of the global privacy trend.

Because of these key factors, companies large and small are making privacy a major focus in 2020. Companies are implementing new policies, procedures, and technologies to ensure compliance and to stay competitive in this global market.

Here are 3 points on why everyone should celebrate Data Privacy Day:

Privacy Drives Transparency and Increases Brand Loyalty:

Consumers are now realizing the true power of having their data collected by companies across the globe. Wise consumers are now deciding to interact with brands that offer transparency when it comes to customer data. And the ones that offer exceptional experiences by leveraging that same information.

A recent Salesforce report found here suggests that 76% of consumers expect companies to understand their needs and provide a custom experience. That only happens when consumers are willing to share their data with these companies. In fact, according to the same report, 92% of consumers are more likely to trust these companies when they are transparent about the purpose of capturing data.

In short, the companies that are transparent about capturing data will reap the benefit of brand trust if they use that data responsibility and offer a personalized experience.

Data Privacy Drives ROI:

Some companies fall into the trap that privacy is only a cost center. These same companies see new regulations as just another hoop to jump through instead of an opportunity to improve systems, increase customer satisfaction and in turn increase ROI.

Cisco recently published a new data privacy report focusing on hard ROI numbers which can be found here. What is really interesting about this report is for the first time it puts a hard ROI number around privacy accountability. The reporting found on average companies will realize a $2.70 in brand benefit for every $1 spent on privacy and that numbers goes up for larger organizations. The benefits can be found in top-line revenue, increase brand trust, a reduction in data breaches and a reduction in sales cycles just to name a few areas.

Again, this report highlights a real ROI based on thousands of responses when companies make privacy a priority in their organization.

Data Privacy is Growing Across the Globe:

For years the web has been a bit of the wild west in terms of companies collect data consumers and then buying and selling that data everywhere. Now across the globe legal bodies trying to develop laws that encourage business but protect consumer rights.

As you can see in the map below from the World Federation of Advertising new regulations are being rolled out in every part of the world. That means companies can not simply hide and operate in a business as usual mentality. They are all now required to ensure the policy standards meet these global regulations. 

The key takeaway here is no matter what industry you are in or where you are located having strong privacy accountable is the wave of the future and the time to get right is now.

Source: https://wfanet.org/knowledge/item/2020/01/14/WFA-Global-Privacy-Map

In summary, celebrating privacy is important, because it will shape how business gets done in the future and is a reflection on our society. We all need to embrace privacy and trust and next year we will have a bigger celebration!

Resources:

Salesforce State of the Consumer Report: https://www.salesforce.com/blog/2019/04/customer-loyalty-data-privacy-trust.html

Cisco Privacy Report: https://www.cisco.com/c/dam/en/us/products/collateral/security/2020-data-privacy-cybersecurity-series-jan-2020.pdf

World Federation of Advertisers:

https://wfanet.org/knowledge/item/2020/01/14/WFA-Global-Privacy-Map

RIVN:

www.rivn.com