It‘s surprising to me that in today’s digital world some businesses view data protection (also known as data privacy) as a burden. However, organisations that do not have a strong data protection policy in place are likely to fall victim to data breaches and information loss, which in turn can impact their reputation and may cost the organisation a significant amount of money.
There’s an opportunity here for those organisations or even industries with this mindset to not only change their approach and perspective on data protection, but also to turn their changed mindset into a competitive advantage.
So, why do you need data protection in the first place?
The increase of widespread data breaches means that businesses are constantly at risk of their data being compromised or corrupted. This can have several consequences, including significant financial loss and damage to brand reputation.
How can data protection give you a competitive advantage?
Companies that are compliant and deploy strategies to ensure the privacy and protection of their customers are at an advantage in several ways.
Customer trust and credibility
Almost every week there’s news of a widespread data breach resulting in the exposure of sensitive information. Customers are now more wary when providing their personal details, in fear that their private information may be shared unwillingly.
One of the benefits of data protection is that it protects valuable data, keeping personal information safe from prying eyes. When a customer knows your company takes their data privacy seriously, they are more likely to do business with you. In fact, across all major trading countries, up to 90% of consumers said they wished there were more companies they can trust with their data.
Streamlines business operations
There are operational efficiencies that can be gained through compliant data practices.
Many enterprises are using their data protection policies to further look at how they’re managing their customer and client data storage as well as their processing and management capabilities.
From leads to customer details, transactions, advertising, and interactions, data protection allows businesses to streamline this data and processes for a more automated workflow.
As data protection calls for better management and storage of information, companies are generally finding they gain better business practices from it – resulting in increased customer trust and loyalty.
Strengthens your security
With data protection laws, businesses are now liable for securing their and their customers data.
This opens up opportunities for heightened security practices within the workplace. For example, using a Virtual Private Network (VPN) is one easy way to store and transfer data securely.
A VPN will totally encrypt any data that you send online. Above and beyond the below protections, with a VPN you get a full encryption service built-in “ which is something we should all have when using the internet, but many of us do not.
Incorporating a VPN in your data protection strategy can also protect against hackers and potential cyber attacks. This means your business and customers are more safeguarded against identity theft, phishing scams, and ransomware.
User data and data personalisation
For companies processing data in a professional and privacy-friendly manner, user data can be leveraged as a major revenue stream.
Businesses are finding that they can look at their customer data analytics and take this information to create targeted advertising campaigns. Just look at popular enterprises like Netflix, who have built their entire brand on leveraging their customer behaviour data and analytics.
Businesses that opt for personalisation and take advantage of the behavioural data at their fingertips are able to more accurately map their customers and draw up a profitable marketing strategy.
From attracting new customers to retaining existing ones, using this approach will improve revenue and boost customer satisfaction and loyalty.
Increase customer base
Another way to drive revenue with an effective data protection policy is to increase your customer base by having data protection as a marketing sell-point’. Customers want their data to be safe, as noted in our point on customer retention, and feeling that you will protect their information better than a competitor can be a powerful selling tool for your sales team.
Protect your business and customers today
At the end of the day, customers are the most important asset to your business. Therefore, protecting their data should be of utmost importance.
While it may be a time-consuming and even costly endeavour to set up, when compared to the benefits there is no question that it is the right move for businesses to take in order to remain competitive in today’s digital world.
