Data Privacy Day
Tomorrow is Data Privacy Day (January 28, 2023), and for companies that conduct commerce online, it’s important to take a closer look at how you’re collecting and using personal data. As consumers become more aware of data privacy issues, it’s essential to be transparent about data practices and demonstrate that you take data privacy seriously.
One of the most immediate concerns is legal compliance. Data protection laws and regulations are a priority for governments all over the world. Notable examples include the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in California, which place strict limits on the collection and use of personal data. By planning ahead and minimizing personal data collection, the risk of non-compliance and potential fines and penalties is reduced.
Another important consideration is that collecting more data than is necessary – especially sensitive personal data - can be costly, even if its being provided directly by the user with their consent. You’ll have to spend money on storage, management, and protection. By minimizing your data collection, you can reduce these costs and focus on improving our services to better respect privacy, which in turn can help you to differentiate against competitors and appeal to the exponentially growing group of privacy-conscious consumers.
In addition, minimizing personal data collection can also help you protect your reputation and earn the trust of your customers. Companies that mishandle personal data or collect more data than is necessary risk significant damage to their reputation. By being transparent about data practices and minimizing data collection, companies show customers that they respect their privacy and are committed to protecting their personal information.
Finally, having privacy-first policies in place can actually help increase sales for digital commerce companies. Companies that require sensitive personal data to be provided as part of the digital commerce experience negatively impact their impact conversion rates. Minimizing the collection of personal data leads to increased customer loyalty and repeat business, as well as positive word-of-mouth recommendations. Additionally, it helps to demonstrate corporate social responsibility, innovation, and a focus on Customer Experience (CX), all of which ultimately lead to increased sales.
So on this Data Privacy Day, let’s commit to minimizing the collection of personal data, not only to respect your customers but also to protect your company’s reputation. Embrace it, plan for it and watch how privacy-first policies improve your bottom line, too.