Group Co.
Should Your Customers Trust You with Their Data?
Traders Magazine Online News, July 3, 2018
It seems innocent enough. Collect email addresses and birthdays so you can reach out to your most loyal customers on their special day. But where is this data stored? Who has access to it? How is it protected?
In the digital economy, customer experience is paramount. Data lets us deliver a personalized experience in real time. But making the customer record richer and more valuable to your company also makes it more valuable to others.
Data is the new oil. It’s the fuel powering growth and innovation, and bad actors can’t wait to get their hands on it. Even a seemingly innocuous piece of information such as an email address or birthdate can be used in identity theft. Today, all personal data is sensitive and there’s more of it all the time.
If you’re in business, you handle sensitive personal data about customers, employees, and partners, and you’re about to handle much more of it. As digital transformation expands across new areas of our lives, increasingly sensitive types of data will need to be shared and accessed by more entities, more frequently. We may not mind our ride-sharing service knowing our favorite destinations, but we care who sees our medical, legal, and financial records.
The days when companies could be casual about personal data are officially over. It’s time to assess the situation and put technologies and practices in place to ensure your customers can trust you with their personal data. Building that trust will reinforce a positive view of your brand, and protect you against the damaging effects a high-profile breach can have on your company’s reputation.
It’s also a matter of regulatory compliance. All over the world, regulations are evolving to address growing concerns about protecting personal data. Complying can be complicated and consequences for missteps serious. Europe’s new GDPR (General Data Protection Regulation) for 2018 includes fines of up to four percent of global annual revenue. A fine of $10 million on $250 million in earnings is a significant incentive. Technologies and regulations will continue to change, requiring companies to be vigilant and proactive about protecting personal data.
Find your data
The first step to improving security is discovery. You’ll need to ask a series of questions to determine the extent of the personal data you collect and hold. What types of personal data do you ask for? Where is this data held? What systems and processes handle it? Who has access to it? What security measures are in place to protect it? Which partners need access to this data, and how do they ensure it’s handled securely? How might personal data assets expand in the future?
Craft your data security strategy
For many companies, data is fragmented and spread across multiple divisions and partners, with varying degrees of security in place to protect it. To prepare for the rapid expansion of data and access that digital transformation is bringing about, you need to craft and implement a strategic plan for governing and protecting personal data. Every partner contract, for example, should spell out requirements for data security standards and practices.
Consult with IT
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