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trust customer privacy

You need these two ways to win customers’ data privacy trust

  • min read
    • Business sees trust in data privacy as a panacea. Companies that foster customer trust see more customer engagement and willingness to share valuable personal information. But what do we mean when we talk about trust in data privacy? What are privacy experts advising companies to do when they recommend building trust? It's one of the driving questions behind my book, The Intelligent Marketer's Guide to Data Privacy: The Impact of Big Data on Customer Trust. Most guidance around instilling trust doesn't adequately explain what trust is, or how to develop it. In researching companies that use privacy as a competitive advantage, I found two types of trust are key. First, customers must trust the company is competent and skilled in protecting their data. Second, they must trust the company's reasons for protecting their data are customer-centered. Although each type of trust is valuable alone, developing both is optimal for customer and business outcomes. Be capable of delivering what you promise The Oxford English Dictionary says trust is "belief in the reliability, truth, ability or strength of someone or something." This definition links trust with data privacy capabilities. For a company to position itself as strong on data privacy, it must have the skills and competencies to be effective in security and protection. For enterprises, this means having resources like data security teams or systems in place, and a talented chief privacy officer (CPO.) You should find it relatively easy to implement (and exceed) privacy regulations. For smaller firms, demonstrating responsible data handling across all interfaces and processes strengthens customer trust in your privacy capabilities. Trust in your company's data privacy abilities also involves your history with data protection. Strong claims about protecting customer data privacy seem suspicious if you've had a well-publicized data breach in the past. But my research found organizations that have suffered a data breach can recover trust by giving customers transparency and control. Ensure you're honest about past lapses when encouraging customers to trust your data protection capabilities following a breach. Be privacy-conscious for the right reasons Customers must also trust your data privacy position is for the right reasons. If trust in your ability to uphold privacy is the cold, rational side of trust, trust in your intentions is the warm, fuzzy side. Ways to build trust in your company's data privacy motivations are less clear and may take longer. This kind of trust is linked to reputation, so just one negative event can deteriorate it, with a long, hard road to redemption. My research found many prominent technology companies suffer from this deficiency in trust. Large firms with ample resources for strong data protections may not necessarily find customers like their privacy stance. For example, even before the Cambridge Analytica scandal, Facebook (now Meta) wasn't well regarded for its privacy practices. When companies like this talk about privacy, customers tend to distrust their reasons. This trust deficit around big tech may present opportunities for small or new tech companies to make a mark, differentiating themselves through customer-centered privacy values. Building customer trust is key to creating value through smooth exchange of personal information and building long-term, mutually beneficial relationships. Businesses of all sizes should pursue customer trust. But, before devoting resources to building trust in data privacy, your business must understand what trust involves. Trust implies distinct company behaviors and practices. Carefully managing trust and not taking for granted what trust you already have, is key to leading on privacy.
legal regulatory systems keep up rapid change

Regulation can keep pace with changing tech. Here’s how.

  • min read
    • With rising concerns about consumer privacy, anti-competitive business activity and the spread of misinformation, public and policymakers' scrutiny of the high-tech space is intensifying. Big Tech's influence is still rising. Safety and data privacy laws already struggle to keep up. Who should oversee and police the online giants, and how can we ensure privacy and security standards meet what consumers rightly expect? The blistering clip of technology If you thought the world moved fast before the pandemic, it's now positively frantic. COVID-19 prompted business to leap forward a technological decade in just three months. "From news, images and videos to apps, games and user-generated content, most material we consume is funneled through the largest technology firms," Taylor Tresatti, head of industry research for BIZDEV: The International Association for Business Development, told me. "More of the world's conversations only take place online." Tech firms' disproportionate influence, alongside concerns about their opaque business practices, raises questions about where responsibility lies for overseeing and governing online worlds. Regulatory processes and technological change International law's often outdated rules, lack of alignment between territories and government bodies and ongoing new technology add up to a mess for government and industry leaders. They're also concerned regulation could throttle innovation. Politicians are often quick to play to public fear but slow to understand new technologies' impacts fully. "These systems are often slow to change and adapt, so they're at direct odds with the technology they aim to manage," Tresatti observes. "That's before artificial intelligence (AI) and machine learning start to drive more exponential industry advancement and growth." Other fast-moving advancements regulation must consider include robotics, quantum computing and industrial automation. Political and public concern not always aligned Political leaders can be part of the problem, Bob Ehrlich, head of consumer insights at Techsavvy, told me. "These and other virtual boogeymen are hot topics for voters, but politicians also face the challenge of how to keep up with a growing technological arms race among international powers." He expects this to lead to greater regulation in the high-tech space. Meanwhile, consumer concerns over privacy and data sharing are skyrocketing. Even as companies like Apple and Google adopt new privacy measures, Meta (formerly Facebook) has fought against them. In technologically advanced nations like the US, there's no comprehensive federal law regulating how most companies collect, store or share customer data − data often prone to compromise or breach by more sophisticated, complex threat actors. "The stage is set for a perfect storm," says Ehrlich. "From back-end oversight and management of data to front-end user experiences, many potential points of failure present themselves. We've got to be more thoughtful and make speedier decisions to have any hope of staying on top of this rapidly changing space." Rethinking the future of high-tech regulation To get better at addressing these challenges, I think we must have more informed discussions and make decisions on these topics more often, indeed, routinely. Given their unprecedented scope and influence, we must fundamentally rethink our approach to tackling technology-related issues. Government and IT leaders can use these three approaches. 1.    Adopt new standards for content sharing Instituting new industry, state and international policy standards and guidelines can help govern content sharing and moderation, data privacy and user security. Active cross-collaboration between agencies and governments would improve regional and international consistency. Christchurch Call is an example of how heads of state and the tech sector can work together to create effective new standards and processes. The international strategy for removing extremist content from social media fast was developed in the wake of a terrorist attack live-streamed on Facebook in 2019. 2.    Form partnerships between public and private sector We must bring together experts from different industries and policymakers to research, discuss and make recommendations on how to regulate emerging technologies and trends. These charter taskforces or committees should be empowered and resourced to report and recommend to lawmakers more rapidly. They should also include younger voices – digital natives – to offer up-to-date insights and perspectives. India has already begun working with Google similarly to help curb the spread of misinformation. 3.    Turn the focus from past to future Lawmakers should challenge themselves to rely less on historical precedents when making decisions. Instead, they could hold future-focused scenario-planning exercises to steer their decision-making around emerging technological use-cases and concerns. Screening processes and regular training would help ensure key decision-makers have contemporary, working tech knowledge. The lawmakers' role should also involve finding and closing the loopholes in legal and regulatory frameworks that unscrupulous actors exploit. Already, the US has convened task forces to help plan for and tackle topics like AI and robotics. Keeping tabs on tomorrow's world More regulatory oversight and governance is obviously coming soon in the IT space, but it needn't hinder industry growth or advancement. Partnerships between technology sector firms, lawmakers and industry bodies can mean opportunities to fast-track innovation while giving customers a more positive high-tech experience. As a futurist who's helped over 1,500 businesses and government agencies adapt to challenges like these, I know ensuring regulation and law keep up with technological change isn't impossible. We must get more government and industry leaders on the same page and promote teamwork and collaboration between the public and private sectors. "When everyone with a stake in the technology ecosystem works in tandem, it creates a more stable playing field and more chances to benefit industry players and everyday consumers," says Ehrlich. "From organization and government leaders' perspectives, finding more harmonious ways to collaborate at every turn is a meaningful upgrade worth pursuing."
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