As data becomes increasingly important to our everyday lives, the issue of data privacy is becoming more critical. Data privacy encompasses how personal information is used, who it is shared with and how it is stored in digital formats. It also outlines how companies can protect that data from unauthorized access and misuse.
Consumers expect transparency about how their information is collected and how it is used. It’s no wonder that 79% of consumers say data privacy is a key reason they trust a company. In fact, almost 80% of those surveyed say they would stop doing business with a company if it had a poor track record on data protection.
A single data breach can wipe out years of accumulated customer trust. Companies that prioritize data privacy and security build trust with their clients, and can see loyalty and referrals increase as customers are confident their privacy is being respected.
Many governments are creating and refining regulations that establish data privacy standards. For example, the European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA) establish requirements for transparency, user consent, data encryption and the right to erasure.
Balancing convenience with privacy concerns is often necessary in the modern world of data processing and sharing. Some types of data are unavoidable, such as income details for the IRS or location data for a navigation app. However, there are steps that can be taken to reduce the amount of data collected or shared without impacting functionality.