Big changes are on their way when it comes to data gathering and utilization. According to the New York Times, lawmakers from both sides of the Atlantic have agreed on a data sharing and privacy deal which will blow the doors wide open when it comes to potential business gains. Data is one of the most valuable resources available to modern digital businesses, but the changing face of data protection means careful thought is required in truly deriving value from that asset.
The changes impacting the collection and usage of data are necessitating greater data protection standards for businesses. This means having secure controls, for instance privacy software for finance and proper encryption for personal data stores. While this can seem like a frustrating further outlay, it is something that is both mandated by law and, indeed, good business sense. According to McKinsey, 67% of consumers already believe businesses store and use their data improperly; showing that a business can be trusted is an incentive for potential customers.
Adapting to privacy first
Privacy coming first is both a legal requirement and a customer imperative. Adapting a business to that is being made easier due to the approach of big tech; Google, for instance, is stopping their ads from using personal data to track users. For small businesses, this will necessitate a new approach to their marketing. You will have customer personal data, and you can use that to make assertions about your user base and their needs.
Using data to grow
There’s a good chance that digital businesses will occupy a particular niche within the industry. That means there’s also a good chance that one customer is going to have similar trends to the next. As a result, making the most out of existing customers is crucial. How is that achieved? Use surveys and mailing lists to engage customers. Look for reasons as to exactly what it is that pulled them into your business, and where they might look for products in the future. Deploy that data to focus your marketing, and ensure that you act responsibly with the data.
It’s more difficult, arguably, than simply deploying mass-gathered personal data to generate tracked ads and insights. However, in the long-term, it’s fairer to customers and it will generate truly high-quality leads for business.