Build More Trust With Data Privacy Compliance
Data privacy awareness is on the rise. As data breaches and shady business practices continually surface, consumers often see the collection of data as an invasion of their right to privacy. There’s also been an increase in distrust and suspicion of a businesses’ motives when it comes to collecting consumer data. As you read on, you’ll learn about four ways that data privacy compliance will help your business build trust with your consumers.
The internet really has changed the way businesses reach customers. With the world becoming more interconnected than ever, new opportunities to collect and sell personal information came about. Companies began to collect data on demographics, preferences and behavioral patterns. With the information collected, a business can improve marketing strategies and shift to better meet the expectations of their customers. This information can allow a business to thrive and as a result of the value consumer data has, selling this information has become a business of its own.
So, What is Data Privacy?
Data privacy is the ability of an individual to be able to control their personal and private information. There are different aspects of privacy, including data integrity, data use and consent to collect. Principles associated with data privacy are aimed to ensure the rights a consumer has to control whether or not their data is collected and how, with whom the data is being shared with and whether their data is sold or shared at all.
As a result of (almost) unregulated data collection going on for a while, consumers (and governments) are starting to understand and demand better data privacy from businesses. Businesses are now expected to be more responsible, accountable and transparent when it comes to consumer data.
Here are a few examples of data privacy laws that companies must follow:
HIPAA (Health Insurance Portability and Accountability Act: This is a US federal law that governs how data in healthcare settings is managed and protected.
GDPR (General Data Protection Regulation): This is the EU’s answer to data privacy regulation. GDPR has the most restrictive rules on the management of personal data being collected. A GDPR violation can carry up to 4% of a company’s yearly revenue*
CCPA (California Consumer Privacy Act: This law (Stemming from California) mandates that companies have to tell consumers how they process their data. It also mandates consumers must be allowed to choose how their data is being collected and shared.
Here are four ways we can help strengthen your reputation and build trust with your consumers by respecting data privacy:
Transparency is something consumers crave!
When your business is compliant with data privacy, it shows your user base that you have a willingness to be transparent with them. Presenting your data practices in a way that’s easy to understand is often appreciated by consumers.
The transparency you showcase with your customer base typically provides a business with a competitive edge, which generally leads to a higher chance of a consumer choosing to give you their business.
Consumers are not only scared of being tracked, they’re downright tired of it!
As previously mentioned, data privacy awareness is on the rise. Consumers are more aware than ever that many aspects of their lives are being tracked by government sectors and private businesses.
Consumers are far more likely to reward you with their trust and business if your company is transparent about the efforts you are making to respect their privacy and comply with laws associated with data privacy.
Consumers appreciate being put in control of their information.
Consumers know their data is being collected. They might not understand how, to what extent or to whom it’s being shared or sold to. Without data privacy compliance, your users may feel like they don’t have control over their own personal information.
When your business is compliant with privacy laws, it puts the control of personal data collection back into the hands of your customer, which typically causes trust to grow.You are more trusted when a consumer feels safe.
Complying with the guidelines and requirements that are put in place by data privacy laws helps show that you are serious about keeping their data safe and secure.
Your users will definitely appreciate your efforts to respect their privacy/data. We recommended supplementing your current data privacy efforts by sending out periodic notifications that let them know the steps you are taking to make sure their information is being safeguarded.
How can Lapero Help?
It’s one of our main goals to make it easier for a business like yours to comply with (the ever-changing) data privacy laws and build more trust with your customer base. Ensuring your business is compliant should be affordable and easy!
With Lapero’s all-in-one compliance solution, we can help with:
Getting proper consent for data collection
The ability to offer your user base a more comprehensive Terms and Conditions agreement.
Privacy Policy Creation
Cookie Policy Creation
GDPR/CCPA Compliant Cookie Banner Creation
Legal Policy Creation
ADA Compliance
And much more!