Why Data Privacy Is Good for Online Business

Cat Hunter 3/10/21 3:37 PM

In today's fast-paced digital world, privacy is more than just a box-ticking exercise. It represents a genuine opportunity to enhance and improve your business. 

Ecommerce is a crowded space, and things are only getting more competitive. As a result, the smartest brands are aware of the need for incremental improvements, boosting their businesses across the board via a diverse range of practical, tactical adjustments.

A firm grasp of your customers' data privacy experience is an excellent example of one such strategy. By proactively ensuring top-level data privacy and clearly communicating this to your audience, you can bring real value to your business.

Let's dive into five of the main areas in which a smart approach to data privacy can help deliver a boost to your business.

 

Avoiding Data Leaks

Once more into the breach

Closer control of your data privacy means strengthened security safeguards. No business wants to be held accountable for a data breach, especially when sensitive, personal information that works within the eCommerce sector necessitates.

Beyond the loss of trust that a data leak will result in, businesses will also avoid the considerable financial penalties and litigation that can accompany such an event. Data breaches in the U.S. were more costly than those in other countries, with an average total cost of $8.19 million (representing more than double the global average).

 

Complete Compliance

Towing The Line

Of course, it's not just a data leak that could hit you in the pocket. While a breach can be disastrous, it's just as important to ensure that you're meeting all of the basic, everyday requirements to ensure total data privacy regulatory compliance.

When individuals submit data requests, it's required they're handled correctly and promptly. Failing to do so erodes trust in your brand, harming your business in the short and longer-term. It also carries a financial impact. Ever wonder just how significant a fine might look in the instance of your own business? Calculate your data privacy fine risk here.

 

Boosted Brand Value

Onwards & Upwards

Brands that actively champion the cause of data privacy can expect to see an uptick in how they are favourably viewed. Online privacy and security are of increasingly central concern to the general public. 81% of Americans consider the potential risks of data collection by companies about them outweigh any benefits they might see as a result.

Currently, a shocking 79% of Americans have little confidence in the way companies will behave when it comes to using and protecting their personal data. By clearly communicating your commitment to your customers via a clear and empowering privacy policy, you showcase that you respect their right to consent and control as a brand.

 

Competitive Advantage

The Same But Different

From our previous point, it's also important to consider how much of a differentiating factor being seen as a data privacy champion can be. When given a choice between your own brand and a close competitor, if you're actively demonstrating the care and attention you pay to privacy, you'll gain an immediate competitive advantage with those for whom personal data is a core concern.

Stand out from the crowd by meeting privacy in a proactive and positive light. By shining a spotlight on how your business handles the issue, as opposed to falling back upon tired templates and confusing small print, you'll be a breath of fresh air.

 

Future Proof Your Brand

The Same But Different

Concern about data privacy is a trend that is only set to increase. With every high-profile data breach, the buying public becomes more guarded, and trust is already running low. 79% of Americans have low confidence in the way companies will act when it comes to using and protecting their personal data. 

Another factor suggesting the ongoing importance of these issues in the years is that privacy awareness is more prevalent amongst younger generations. 61% of individuals who are active with regard to their privacy are under the age of 45. Investing in your privacy experience today will pay dividends tomorrow. 

 

Invest In Privacy, Invest In Your Future Business

To succeed within the eCommerce space, it's increasingly vital to ensure you're hitting every note when it comes to customer experience. Privacy is a huge component of the modern customer experience that is only set to grow.

Keeping your security tight, guaranteeing compliance, enhancing your brand reputation, protecting you from costly fines, and giving you the edge on the competition, today and in the future… For all these reasons and more, when handled correctly, privacy has the capacity to be an incredibly beneficial component of your business's ongoing success.