Data Privacy No Longer A ‘Nice To Have’. It’s A Business Imperative
There are many more reasons why companies need to take data privacy seriously, not just because the law says so. Below are the top 5 reasons why businesses should prioritize data privacy in their digital transformation journey:
1. Data breaches will harm your business
Complying with data privacy regulations is important not just because sensitive information can be misused in case a data breach occurs, but also because data privacy compliance is actively enforced in the US states and around the globe.
Organizations that don’t implement these regulations can be fined up to tens of millions of dollars and even receive a 20-year penalty.
Besides customer data, your intellectual property or trade secrets are at also risk.
2. Data privacy is essential for your brand reputation and value
A Forbes Insights report stated that 46% of organizations suffered damage to their reputation and brand value as a result of a privacy breach. Organizations that explicitly make clear that protecting the privacy of their consumers is a primary goal will build emotional connections to their brand, which in turn will improve brand value.
3. Data Privacy will help build customer trust and loyalty
According to a study commissioned by Centrify, 65% of individuals whose personal data was breached lost trust in the organization that experienced the breach (either directly, or as a result of a breach in one of their contracted vendors). One in four compromised customers took their business elsewhere. Organizations that do not implement privacy protections, and subsequently experience breaches, will lose trust, which in turn will result in lower profits, unhappy and fewer customers.
4. Data privacy will deliver competitive advantage
Data privacy issues aren’t just a matter of checking the compliance box; they have become strategic competitive advantages that can raise the bar on brand trust with consumers.
Close to 75% of internet-using households in the US had significant concerns about online privacy and security risks in 2017, and 1/3 of these indicated that they chose to not engage in online businesses because of those worries. These significant worries about privacy, and how it impacts the actions of the public, demonstrate that if your organization can show that you truly care about the privacy of the personal data you collect and process, you will have a significant advantage over your competitors who do not make privacy a priority.
According to Privitar’s 2020 Consumer and Data Privacy Report, nearly half of consumers (43 percent) said they don’t know if they’ve worked with a business that has been impacted by a data breach. These findings point to the fact that when it comes to the management of their data, many consumers aren’t fully aware of how brands are securing their personal information. With this, businesses have a tremendous opportunity to make data privacy a differentiator and a way to build long-term trust and loyalty
5. Data privacy can drive Innovation through data optimization
According to Cisco Data Privacy Benchmark Study 2020, The percentage of organizations saying they receive significant business benefits from privacy (e.g., operational efficiency, agility, and innovation) has grown to over 70%
Having a strong privacy program allows organizations to extract more value from the data that they already have. As part of the data discovery phase, they drive insights into customer behavior or from other organizational data they already have access to, delivering more actionable, real-time insights from existing data assets.
Discover how CYTRIO can help you automate your data privacy compliance. Schedule a free trial with one of our team members to learn how we can help your organization build customer trust through data privacy compliance..