We are living in unique times. Cloud Computing, advances in Artificial Intelligence, and the development of the Internet of Things mean that there are endless streams of data created about us and our behavior every minute of every day. Data Privacy has accordingly evolved into one of the seminal issues of this century.
Privacy is a word that we hear about almost endlessly these days. We hear about anxieties all the time from people about how much corporations, the government, and even their own friends know about them.
To be successful in the Digital Revolution, companies will need to collect more and more data about their customers. This same volume of personal information that is being collected as part of business operations in the name of providing customer services has put us all on high alert. So much so that the growth, consumption, and endless analysis of data need to be accompanied by a commensurate level of transparency.
And as seductive as the convenience we experience at the hands of our service providers is; it unfortunately comes at a price. And how much you value your privacy determines that personal cost. Location tracking, friend suggestions, personalized purchase recommendations; all suggest cultural shifts in the way that we live our lives and the increasing role that businesses and government institutions play in our lives.
Recent studies by Deloitte and KPMG unanimously agree that, the world is evolving at a frantic pace and that we’re only in the early stages of understanding how to manage our personal information.
With the COVID pandemic, the online retail journey has been fast tracked and has rendered consumers overnight digital citizens (willingly or unwillingly!). Couple this with the escalation in data breaches as well as increasing consumer awareness, and the anxiety around data privacy continues to rocket, with consumers not sure where to put their trust. As consumers becomes savvier and organisations are forced to become more transparent with customer data, trust has become the currency of exchange.
The growing consumer trust gap highlights the need for corporates to update their data handling practices by ensuring that consumer privacy is central to their business model; and not just a nod to compliance. Those companies that approach the collection, use, storage, and management of their customer's personal data in a thoughtful and privacy-centric way, will be the last ones standing. To be in that position, companies will need to foster a respect for privacy throughout their organisation, also known as culture!
Privacy is not a new phenomenon, as humans we have always had an instinctive desire for privacy. However, the concept of privacy as a protected (even constitutional) right under the law has accelerated in the last few years.
The GDPR (General Data Protection Regulation) was ground-breaking because, unlike previous Data Privacy laws, it recognized the data subject as the ultimate owner of their own data. In the past, organisations that collected personal data assumed ownership of that data and handled it with a lot of latitude. But through legislation that continues to be enacted globally, the playing field is now levelling.
Based on conversations with colleagues, friends and even family, it’s clear more people are more forthright in their demand for the respect of their privacy.
Technology, by its very nature, will always be a step ahead of legislation. As a result, Corporations will continue to build on what they have, and Legislators will continue to be the voice of the voiceless.
No one should be above the law when it comes to managing and using personal data. The message to businesses is simple: These are pivotal times and if you as Corporates can focus on how you collect, store and use customer data, you have a chance to convert this lifeline into an asset and the leading currency of the Digital Age - Trust.
Low hanging fruit, or the most proactive ways for businesses to build trust include the following;
a) Being transparent with your customers about what data you collect and how you use it;
b) Getting creative about acknowledging your customer’s right to privacy by embedding data privacy into your product, service and channel designs; as well as your organisational policies;
c) Staying abreast of threats and putting in place commensurate security measures to protect your customer’s data from internal and external threats;
d) Using their data to delight customers and not just to monetise them; and
e) Ultimately being guided by the true-north question, “What is the right thing to do?” and not “What does the law require”.
To bridge the gap, as consumers we also have a responsibility to educate ourselves so that we can protect ourselves. We need to ask the right questions of the organisations to whom we entrust our most prized asset (our personal information). This is the best way we can start to take the power back from the Corporates that continue to monetise us.
In closing, the message to consumers is that, we are ultimately responsible for our information, so pay attention to the following:
a) Ask the sticky questions that need to be asked of those who collect and store your information (what do you have, where did you get it from and why do you need it?);
b) Don’t engage in risky online behaviour (such as leaving your card details and personal information on any site that you come across) and don’t be seduced by every “free” offer that comes your way, it comes at a price;
c) Pay attention to who and where you dish out your personal information. At a minimum, question your intention as well as the intention of the collector of your information.
In closing, Data Privacy is a human right and the message is clear; according to the New Imperative for Corporate Data Responsibility, KPMG 2020 Report; “Corporations rely on the insights they get from customer data to sharpen their strategy and enhance their customer experience. But with access to that data comes the obligation to protect it. Ultimately, consumers will hold the organisations that fail to do so accountable”.