Why Data Privacy is Beneficial to Business: The Importance of Online Privacy in Branding

Organizations often utilize data insights to boost personalization capabilities, target consumers, and produce consumer-centric products to enhance their business. On the other hand, customers' perceptions of the brand, prospective and present workers' perceptions of their workplace, and how authorities and media outlets approach the organization are all influenced by how these organizations use that information. Therefore, to fully exploit the potential presented by today's data privacy atmosphere, companies must consider data privacy and information management in their branding strategies.


Making Data Privacy a Part of Your Branding Strategy

People are attentively monitoring other company's data privacy policies as some of the largest tech giants opt to take a more responsible approach to data protection. They consider how a company's actions influence data protection and choose to do business with more privacy-friendly companies. Therefore, joining the data protection and transparency club by practicing the following may be a wise decision if you want to play in the same league as the market leaders:

  • Examine your data privacy procedures to determine if you can do anything to enhance them, such as collecting fewer data. Once you've evaluated your privacy policy, make it clear and straightforward, and explain how the data you're collecting will benefit the user. You might even use it as part of a public relations campaign to emphasize your company's commitment to client privacy.

  • Dedicated data privacy compliance specialists should be hired to handle data privacy within the company. To establish your company as a leader in the industry, you can share your experience with others and give relevant advice to other brands through webinars and speaking opportunities.

  • Remind your clients that the ball is always in their court by allowing them to manage their data easily on your website, fostering openness and confidence.


Not practicing the above may harm your brand and represent your customer experience poorly if your firm has a hidden motive in collecting and exploiting their private information without allowing them access to their data. This is more prominent as many clients now view handling their data as an essential aspect of your customer service and experience, with 90% of consumers feeling that how their data is dealt with reflects how they are treated as customers. In other words, customers want transparency, and your data practices will reveal a lot about your business, even if you didn't intend for them to.


However, it is crucial to keep in mind that you constantly weigh privacy versus value. The data ownership revolution assures that whatever data we provide is traded for actual value from a service or product. Yet, if you ask for or exchange extra information, it may be more difficult to persuade clients that you're worth it.


According to a Cisco survey cited by Harvard Business Review, the audiences likely to actively embrace or quit businesses depending on how they manage users' personal data are younger, wealthier, and purchase more online. This triple threat informs businesses that individuals who value their data and pick brands that fit the bill have today's and tomorrow's purchasing power.


Don't Forget About Compliance

Without considering legislation, fines, and their influence on an organization's future, we couldn't reasonably discuss data privacy as a commercial requirement.


For the European Union, fines under the GDPR had gone a long way since the slap-on-the-wrist approach was taken when the regulation was initially implemented in 2018. Penalties jumped by 113.5 percent between July 2020 and July 2021. Several records have been broken, and the trend is sure to continue as the discussion over privacy heats up.


Fines and the negative publicity that comes with them can negatively influence a company's brand value and need a significant investment of resources. They impact how current and prospective new customers perceive the brand, and they may be challenging to recover from.


Therefore, organizations that want to keep and grow their brand should do a data privacy audit as part of their routine procedures. If the results are outstanding, let the world know and relish the benefits; if they aren't, now is the time to improve.

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