Personal information is a valuable commodity. As technologies evolve and the ability to collect and analyze vast amounts of data increases, gaining consumer trust is more important than ever. However, despite data privacy laws being implemented in over 150 countries globally, consumers are still not confident that their data is protected.
When you consider that 33% of users have cut ties with companies because of privacy concerns, the impact on businesses is clear. So, what’s next?
Understanding the link between privacy and consumer technology
In today’s digital age, it’s important for users to understand the link between privacy and consumer technology. The use of technology often involves the collection, storage, and analysis of personal data, and as technology advances, the amount of personal data being generated and collected is increasing. These questions are top of mind for concerned consumers:
- How is my data being used?
- Who has access to it?
- How will you protect it?
With findings that 81% of respondents feel they have little or no control over the data collected, its necessary to ensure users have control and companies take the appropriate measures to develop more responsible and ethical practices that prioritize user privacy and security. A top concern is explicit consent or the lack thereof to the collection and storage of sensitive data that can include sensitive information such as financial details, medical records, and private communication.
Another issue of consent is sharing consumer data between companies. Unauthorized sharing can lead to targeted advertising or price discrimination, but it also leaves consumers vulnerable to more consequential crimes, like identity theft. Additionally, the potential for data breaches and hacks puts consumer data at risk of being stolen and used for malicious purposes.
A lack of transparency around how companies use and protect consumer data can also make it difficult for individuals to fully understand and control their privacy. 79% of consumers know how to secure their data on apps, email, and social media accounts while only 40% regularly check their privacy settings for best practices. However, with awareness gaining speed, companies will have to level up to gain and retain consumer trust.
Trust is earned
Trust is critical at every stage of the adoption process if your brand wants to protect its reputation. Prioritizing transparency builds loyalty, making your brand a differentiator in an overcrowded industry. You must always consider the potential loss of your customer because once a business loses that trust, it’s very hard to regain, which spills into a loss of revenue as well.
Some experts believe that the key issue with trust in technology is our conditioning to believe that “tech can solve every problem.” In most cases, the technology works perfectly and human failure has caused a problem. That’s not an excuse to shortcut and not deliver a flawless user experience that begins and ends with transparency. With over 60% of Americans blaming the company instead of the hackers when a data breach occurs, it’s easy to see why trust is the uptake of consumer technologies. So, what can companies do to build up that all-important consumer trust?
Develop clear and transparent privacy policies
Respondents to Cisco’s 2022 Consumer Privacy survey rated transparency as their top priority, with 39% selecting having “clear information on how data is used” as the most important activity organizations can do to build trust with customers.
Here’s a handful of guidelines to create clear privacy policies for your company:
- Keep it simple and clear: Privacy policies can be hard to understand, so keep them as simple as possible, using plain language and avoiding legal jargon. It’s also essential to explain whether and how you share data with third parties.
- Provide examples: Providing examples gives a context to help consumers better understand what kind of data is collected and how it is used.
- Outline data protection measures: Consumers want to know their data is protected. Your business should outline the measures you have in place to keep data secure, such as encryption, firewalls, and access controls.
- Make it accessible: They should be easy to find and access. At best, prominently displayed on your company’s website and available in multiple languages if required.
- Update regularly: They should reflect any changes in data protection laws, business practices, or any other updates that impact the policy.
Take action and communicate
Companies must take a proactive approach to data security by conducting regular risk assessments to identify potential security threats and vulnerabilities. These also include customer-facing best practices, like multi-factor authentication, automatically timed logouts and strict requirements for strong passwords. Security and privacy, therefore, become default options for consumers using features that support the balance with user experience.
Companies should also encrypt all sensitive data in transit and at rest, which can help to prevent unauthorized access or theft. Educating employees on security best practices is also vital, including how to identify and avoid potential security threats like phishing emails. You can encourage consumers to also take an active role in protecting their privacy by being vigilant about the data they share and take advantage of available privacy settings. Lastly, regularly engaging with consumers in addressing their data privacy concerns is essential. Best practices can include:
- Communicating regularly: This can be done through newsletters, blog posts, or other communication channels.
- Providing control and choice: Providing options such as timed data deletion, rectification, and portability.
- Educating: Educating consumers about data privacy can help to alleviate concerns and build trust. Provide customers with information on how to protect their personal information, the risks of data breaches, and how they can take control of their data privacy.
- Be responsive: Respond quickly to customer queries, complaints, and requests.
- Keep up with changing regulations: Data privacy regulations are constantly evolving. Stay up-to-date with the latest regulations to ensure your business is compliant. This can help to build trust with customers who are concerned about the handling of their personal data.
Personal information is a valuable commodity. As technologies evolve and the ability to collect and analyze vast amounts of data increases, gaining consumer trust is more important than ever. However, despite data privacy laws being implemented in over 150 countries globally, consumers are still not confident that their data is protected.
When you consider that 33% of users have cut ties with companies because of privacy concerns, the impact on businesses is clear. So, what’s next?
The path forward
The path forward requires a multifaceted approach incorporating technological and regulatory solutions to help increase consumer trust. Education and awareness efforts must be prioritized to ensure that users have the knowledge and tools they need to protect their privacy. By working together, stakeholders in the tech industry can create a more secure and privacy-conscious future for all users.
We understand that brands need to connect with consumers in a meaningful way to foster relationships, establish and rebuild trust when necessary. At Hotwire, we work with a broad range of consumer tech clients to increase loyalty, build awareness and change perceptions. Contact us today to find out more!