Firms can and must take steps not only to gather ethically but also to safeguard the data collected. A study done in 2014 by Deloitte found that privacy and security measures can help build a strong competitive advantage in the market and enhance its reputation and brand value. The following are the steps that a firm can take to do so:
Ethical collection of data – Firms should collect data from customers only after receiving explicit consent from the customers. Customers must be given a real choice on whether they want to share their data or not. In addition, customers should be made aware of any changes in privacy and data policy.
Collecting less data – As counter-intuitive as it sounds to the firms, collecting less but meaningful data should be the goal of every firm.
Data security – The data that firm end up collecting should be secured. For example, sensitive data like credit card information is under perennial threat from hackers. Therefore, before collecting such sensitive data, the firms should already have security measures in place.
Privacy vs Personalized Marketing
Although many consumers know their privacy is their biggest priority, many consumers believe that personalized marketing makes their buying process a lot easier. A study done by Accenture found that 61% of US consumers believed that getting relevant offers was more important than data privacy for them. Therefore, a firm has the difficulty of treading the fine line between ensuring privacy and collecting data for personalized marketing.
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