The more consumers trust a brand, the more they inherently value it. As the digital world evolves into a trust economy, a company’s most valuable asset is the confidence customers have in its commitment and ability to protect their online privacy.
The Internet’s trust bubble burst in 2018 with the Cambridge Analytica scandal. When the consulting firm was caught harvesting the Facebook profiles of 87 million users without their consent for political advertising purposes, it thrust the murky online data collection practices of the tech giants to the front and centre of public awareness. People began to understand the sinister implications of mass-surveillance capitalism – with its ubiquitous data tracking processes that have been disguised and engineered to be undecipherable, undetectable, and incomprehensible to users.
The arrival of the GDPR in May 2018 and subsequent privacy storm has exacerbated the lack of faith in online data privacy – user trust in how companies use and manipulate their data is at an all-time low. According to research, 93% of Internet users worry about their privacy online, 45% do not trust companies with their personal information, and 89% avoid doing business with companies they believe don’t protect their data. It is therefore more critical than ever for brands to foster consumer confidence in their data collection practices.
Following the example set by the GDPR, data protection and privacy regulations are being implemented across the globe. However, although they serve as a benchmark for privacy best practices, companies need to move above and beyond compliance, by shifting to a privacy-driven philosophy that proactively forges consumer relationships based on trust. By adopting an ethical and GDPR-compliant approach, they can leverage data privacy as a major value driver.
The benefits of a Privacy-first approach
Companies that implement a comprehensive ethical privacy strategy can considerably raise brand confidence with consumers – providing better customer experiences that inevitably lead to improved customer retention. Improved loyalty also means that customers are more likely to recommend the company by sharing their experiences – leading to increased and more frequent spend on the company’s products and services. Studies have shown that over 80% of companies said a Privacy-driven approach had a positive impact on the organisation’s reputation and brand image with an increase in trust. While over 75% saw a revenue increase, with strong performance driving benefits such as greater customer loyalty and increases in online purchasing.
Privacy-driven ethics and digital sobriety are also opportunities for brands to optimise performance. As well as eliminating the potential breach costs associated with the risk of amassing big data, companies can increase their efficiency by streamlining their collection and gaining a clearer vision of the data they’re working on. This in turn contributes to increased agility and operational efficiency. Fewer requests reduces the processing time and a more efficient API data flow means that it can be sent far more rapidly to the data warehouse for speedier turnaround. This can lead to stronger overall business performance in terms of reduced sales delays, optimised processes for handling and managing personal data and shorter system downtimes. Reduced storage time also provides fresher, more accurate, privacy-friendly and energy-efficient data – all of which can be used to facilitate decision-making.
Mitigating the risks of non-compliance
Committing to a privacy-first approach also ensures that you remove all the risks associated with non-compliant data collection practices. These include the upfront costs of a breach – €20M or 4% of worldwide turnover – and the longer tail costs. Managing a conviction for a data privacy breach takes up a considerable amount of time and resources, not to mention funds. Business disruption can also be considerable with revenue losses as a result of system downtime and reduced customer turnover.
However, the most significant damage from a breach is the lost business caused by damage to a company’s reputation – this applies to customers, investors and the long-term perception of the brand.
By using an independent tool that is privacy-compliant, combined with the minimisation of collected/calculated data, companies can simultaneously reduce risk and create value. By initiating a virtuous circle of trust at the service of digital ecology, they can generate a win-win with privacy-first data that is more accurate, more reliable, and less harmful to the planet.
Why AT Internet is a partner you can trust
For over 20 years, AT Internet has been a leading independent, digital analytics provider. Data Privacy has always been at the heart of our approach and we have long held the protection of user data and the respect for user privacy as a core value and guiding principle. Our Analytics Suite is fully compliant with the GDPR, and we are dedicated to setting the best example for our customers and industry peers, with the highest standards of data protection and privacy. It’s part of our DNA.
We are fully committed to respecting user privacy and promoting the fundamental values of data protection – providing complete transparency on how we collect, process and use data, both on our websites and those of our customers using our digital analytics solution.
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Photo credits: Sharon McCutcheon
