PRINCETON, NJ / ACCESSWIRE / May 18, 2023 / In a world where data is constantly being collected and shared, it's easy to feel like you've lost control of your personal information. But the truth is, you have the power to protect yourself - and companies have a responsibility to help.
81% of Americans feel the risks of data sharing outweigh the benefits of giving out personal information to a business. 79% have concerns about how companies collect their personal information, and 59% do not understand how companies use the data.
Raises concerns about brand loyalty for the business and can result in a negative Lifetime Value rate (LTV).
Big data technology has changed the dynamic user interaction with Brands online. It establishes a new system of leveraging "user data" and opens the door for personalized marketing, which gives brands a significant edge and understanding of the requirement of their consumer.
At the same time, it places its ads at the right time and right place. Constantly track users' activity with the help of "third-party cookies." Though big data technology helps businesses target relevant ads and gives consumers more options, it can pose an imminent threat to their privacy.
Cookies and similar technologies are loaded on your devices and have the blueprint of your data. Just as you see target ads anywhere, anytime, you can be tracked anywhere, anytime.
Businesses that lose consumer trust will face severe financial impact and decreased market credibility. Deloitte discovered that when shareholder trust was lost, three $10 billion companies lost 20 to 56 percent of their value.
Businesses need to build trust with consumers by prioritizing privacy by design across risk, ethics, security, and E.S.G. Create industry-wide impact and empower customers with trust by design that gives them more control of their data.
"According to reports, Sephora sold user's data to third-party advertisers without legitimate consent of the consumer, resulting in direct violation of CCPA with a fine of $1.2 million. Is this the future of business we seek in a tech-advanced data-driven world?"
Today, Data means profit. As per Mckinsey Global, data-driven businesses are 23 times more likely to acquire customers.
Companies are investing heavily in data intelligence to make data-driven decisions. In the process, companies jeopardize long-term customer retention. Instead, businesses must shift their focus toward becoming a customer-driven brand and prioritize the growing data privacy needs.
Privacy-first design infrastructure for global data privacy laws
Cambridge Analytica Data Scandal in 2018 resulted in the advent of GDPR.
Since then, 81% of Americans have become skeptical regarding companies collecting private data. The U.S. is the world's tech center, and it needs to build an ecosystem where users' data can be exchanged and processed in a manner that doesn't expose their privacy, hence making a better and safer data-driven world.
The United States of America will lead the world with the most startups in 2023. 99.9% fall into the S.M.B.s category, which generates roughly 50% of the nation's employment.
Most of the Startups today in America operate in the D2C segment, and large establishments like Nike, Adobe e-commerce, and many more have already incurred at least 40% of their sales in the D2C segment.
D2C's expected growth rate will be 23% by 2025, which has enormous opportunities for big businesses and startups to explore and grow exponentially in this segment. But as D2C is heavily data-reliant, privacy laws will be watched carefully.
That's why U.S. Lawmakers had to create a data privacy ecosystem that would give more control to its citizen to decide with whom they want to share their data. Privacy laws have pushed businesses to respect consumers' personal information and establish trust inwith privacy.
California's Consumer Privacy Act, or CCPA, was the U.S.'s first landmark data privacy legislation enacted in the Golden State of California, giving residents of California more control over their data. And it enforces its addendum CPRA, passed on 1st January,2023, with fines and penalties ranging from $2500 to up to $7500 per violation.
In the last three years, Americans have become more aware of how companies use their data, and more than 60% of individuals under 45 are actively involved in their data privacy rights.
People want to know. They want businesses to be transparent and want to understand how they collect and handle their data. People aged between 18 and 34 have submitted DSARs (20%), compared to 35-54-year (14%) and 55+ (4%), as per the D.P.O. November 2020 report.
Responding to such requests and giving people control of their data will ensure that the future of businesses is secure.
Just don't take our word for it. See what consumers have to say about their data and why businesses need to step up and be consumer-driven brands:
With over 130+ countries having passed or enacted rigorous data privacy regulations; data privacy regimes have become more stringent. We live in a privacy-first world where individual rights are at the forefront. Businesses must quickly adapt to emerging laws and acknowledge individual privacy rights.
Prioritizing Individual Data Privacy Rights in a Privacy-first World
Data privacy laws such as GDPR have created a framework that upholds users' rights by giving them more data control. This framework is called DSAR (Data Subject Access Request), also considered the "Right to Information of Data Privacy."
DSAR helps individuals request companies, verbally or in writing, to modify or delete their data.
The primary motive behind DSAR is holding companies responsible for showing transparency by complying with privacy laws and giving back control of their data.
Now, why is this so important?
More than 40% of the fortune 500 companies will vanish in 10 years because of increasing competition, according to A study from the John M. Olin School of Business at Washington University. It's high time businesses understood that it is no longer about products. It's about building trust.
The Millennials and Genz are the drivers of the digital age. This generation wants businesses to be trustworthy and transparent. In fact, according to an article by Forbes, Millennials and Genz have lost their trust in companies. They want companies to demonstrate trust by upholding individual privacy rights through the effective DSAR solutions.
So far, only about 11% of the companies have a dedicated DSAR solution, and more than 50% of businesses process data subject requests manually. And if you're still doing it manually, it's time to get automated. If you didn't respond in the given time, the fines are just around the corner.
Built-in Privacy from ground up
Adzapier is a compliance partner that assures your business's adaptability with evolving laws and ensures building trust between consumers and brands. A privacy-first infrastructure ensures that your customers' data privacy rights stay at the forefront of your data collection and manage subject access requests in minutes. Adzapier has been in the data privacy compliance industry for over 5 years, ensuring that data privacy isn't a myth anymore.
Adzapier offers:
- Dedicated end-to-end response automation, data discovery, and risk management.
- Prioritize requests as per Region, Subject types, and pending appeals with data privacy workflows by law.
- Keep your response time on track with metrics such as average response time per request, so you don't miss a single subject request.
- Automate the step-by-step process of subject requests across all departments with a pre-defined Workflow.
Arrange a free call with our data privacy experts and build a customer-driven brand.
Our founder Dharmesh Patel on data privacy and its future - Watch here
Contact:
Lauren Leary
(855) 212-9063
[email protected]
SOURCE: Adzapier