Providing transparency about the ways customer data will be used and distributed
Limiting the amount of data collected and retained to only the crucial information that will help achieve a stated intent
These practices form the cornerstone of a robust data privacy strategy. By respecting customer choices, transparency in operations, and collecting data sensibly, businesses can uphold data privacy while building lasting relationships with their customers.
Top 5 data privacy best practices for building customer trust
There are five key considerations for companies when it comes to data privacy. Each best practice helps ensure the confidentiality and compliance of customer data.
Consent. Customers are becoming leery of companies that store and sell their data without their full grasp on the give and take. Regulations around consent are also tightening. Both trends point to one thing: Companies need to clearly spell out their intentions with customer data and give customers legitimate options to opt in or out.
Purpose Limitation. Purpose limitation dictates that companies should follow regulatory guardrails around how data is collected, and compile it only for specified, explicit, and legitimate purposes. Common examples include user opt-in and opt-out forms, so users can choose their preferences.
Data Minimization. In order to protect customer data, companies america phone number list need to have strong data management practices. Just as companies shouldn’t use data for unspecified purposes, they also shouldn’t collect data that is not relevant to their stated purpose. And they should store data only as long as it takes to fulfill that purpose. One way to take action on this is to delete old or stale data.
User Rights. Users have certain specified rights, some of which are protected by local law and some of which are protected by regulatory entities. You may have even seen some examples in the U.S. with the Federal Trade Commission (FTC), the General Data Protection Law (GDPL) in Brazil, or the ripple effect of GDPR and Digital Operational Resilience Act (DORA) across businesses in Europe. It’s important to familiarize your organization with the laws that apply – tracking developments as state, federal, and global legislators continue to push for more regulation — and configure data privacy practices accordingly.
Anonymization. A thread that runs through all data privacy best practices is protection. In particular, a key pillar in this process is protection through anonymization. This technique safeguards privacy by modifying or removing specific details from personal data, making identifiers indiscernible without additional information. This allows compromised data from being traced back to a specific user, even in the event of a security breach.
Overcoming key data privacy challenges to future-proof your business
And remember, building a proactive and resilient data strategy allows for a more worthwhile and long-standing relationship with your customers.
Improving data privacy means taking into account the best practices detailed above. But it also means understanding the full scope of issues that can lead to poor data privacy, and appropriately accounting for each.
Here are some common data privacy hurdles:
Cost. It costs significant money to invest in data privacy. But the alternative — including breaches, fines, and reputational damage — can amount to much more.
Visibility. When data isn’t organized, it becomes difficult to comply with regulations and best practices. Establish clear protocols for proper documentation, categorization, and audits to provide clarity in the context of regulatory standards.
Culture. In many organizations, there are still remnants of a previous attitude in which more data was always better. As companies take a more thoughtful approach to data collection and privacy, they’ll need to make sure their people and culture are on board.
Scope of regulation. It’s extremely challenging for businesses to stay current with all the data privacy regulations under which their company falls. Setting in motion sound processes, such as keeping up with the latest legislative efforts, will help stay in compliance and plan for future changes.