Cybersecurity and data protection are increasingly talked about topics in the modern world of business, and it’s not hard to see why. There are countless cyber-attacks occurring all the time, and the average business in this day and age is responsible for storing huge amounts of sensitive data.
This includes both company files and customer information too, and if any of that information leaks out or falls into the wrong hands, the consequences can be catastrophic, and this guide will go over just some of the many reasons why data privacy is so vital to small and big businesses alike.
Building and Maintaining
Trust It can take a lot of time for businesses to build trust, but it only takes a second for that trust to be shattered. A single data breach can destroy years of hard work, but if you truly invest in privacy, your brand can not only earn the trust of customers and partners but also demonstrate that it deserves that trust too.
Keeping up with Compliance
One of the main reasons why you need to invest in data privacy and take steps to secure the data your company stores, especially in relation to your customers and clients, is for simple compliance. There are more and more rules and regulations regarding data protection, with the EU GDPR being a well-known example of this, and big penalties for companies that fail to comply.
Protecting the Business
Another good reason to make sure your data privacy approach is of a high standard is to protect your business and safeguard your investments and company capital. Studies show that the average cost of a data breach is rising, year after year, and a single breach can spell the end for smaller businesses and startups, in particular.
Protecting Customers and Clients
Of course, as well as protecting the business, data privacy also aims to protect the people whose data may be at risk: your customers and clients. Many businesses nowadays store a lot of information on their clients, and if names, addresses, credit card numbers, and other details are revealed, shared, or sold, there could be many negative consequences for the people involved.
To Get the Edge
Studies show that customers are more cautious in terms of the brands they trust, and many of the high-profile data breaches of recent years have made people even warier when it comes to which brands they want to work with. Having a reputation for strong data privacy can therefore help to give your brand the edge, making you more likely to be chosen ahead of your competitors, boosting sales, and building your brand’s value over time.
Building Your Business
Investing in data privacy and protection is also a great way to help build your business and give it space and security it needs to evolve and develop over time. With good data protection systems and policies in place, it’s much easier for companies to build on other areas of their operations and grow their customer base.
Preserving Brand Value
Brand value is so important in the modern era, and today’s customers are far more discerning when it comes to how they spend their money and which brands they’re willing to trust. A single data breach can dent a brand’s value and image in some big ways, with one Forbes report showing that almost 50% of businesses suffered brand value damage in the wake of a data breach.
The Ethical Perspective
There’s also the plain and simple fact that protecting the privacy of your customer data is good moral behavior, and with many startups and modern businesses being built on strong values and ethical philosophies, it’s imperative to ensure that your actions align with those values; looking after customer privacy is a noble action and a good way to show that your brand truly cares about people.
Many people see data privacy purely from a digital perspective, focused only on the virtual risks that a person might have to worry about if their personal information was leaked or obtained illegally and sold across the internet, but there are also physical risks to take into account. In fact, some of the earliest data protection laws were put in place to stop people from being at risk of physical harm or stalking if their addresses were made public. Protecting data in the digital space can therefore keep people safe in the physical world too.
There are just some of the many reasons why data privacy matters so much, and regardless of your business operations, it’s vital to make data protection a top priority.